Financial Crime World

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Chile’s New Law on Corporate Responsibility: What It Means for Businesses and Investors

A new law aimed at combating economic crimes and ensuring corporate responsibility has been passed in Chile, effective August 2024. The legislation introduces significant changes to the country’s legal framework, making it essential for businesses operating in Chile to review and strengthen their compliance programs.

Key Requirements

To comply with the new law, companies must have:

  • Adequate resources
  • A direct line of reporting to top management
  • The necessary powers to act

The law also requires companies to have independent third-party auditors and monitors to ensure that their compliance programs are operating effectively.

Impact on Investment Climate

Chile has been a popular destination for foreign investment, thanks to its stable legal framework and low levels of corruption. The new law is expected to further attract investment by demonstrating the country’s commitment to combating economic crimes and ensuring corporate responsibility.

What Investors Need to Know

Investors in Chile must familiarize themselves with the new law and ensure that the companies they invest in have implemented robust compliance programs. This includes reviewing the company’s third-party due diligence processes to prevent potential liability for bribery or corruption.

Key Takeaways

  • The new law introduces significant changes to Chile’s legal framework, making it essential for businesses to review and strengthen their compliance programs.
  • Companies must ensure they have adequate resources, a direct line of reporting to top management, and the necessary powers to act.
  • Investors in Chile must take steps to protect their investments by ensuring that companies have implemented robust compliance programs.

Contact Us

For more information on how our firm is helping US and global companies navigate Chile’s new law and improve their compliance programs, please contact:

Florencia Fuentealba* is admitted as a lawyer in Chile.

Disclaimer

The information contained in this communication is not intended as legal advice or an opinion on specific facts. This information is not intended to create a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact.