New Law in Chile Aims to Combat Economic Crimes

Introduction

The Chilean government has introduced a new law aimed at combating economic crimes and increasing transparency in corporate operations. The law, which comes into effect in August 2024, requires companies operating in Chile to implement robust programs of compliance to prevent and detect economic crimes.

Key Provisions

• Companies must have adequate resources, direct reporting lines with top management, and the necessary powers to act effectively to prevent and detect economic crimes.
• Companies are required to engage independent third-party auditors and monitors to ensure that their programs are operating properly.
• Companies operating in Chile will have 12 months to review and strengthen their compliance programs to meet the new standards established by the law.

Failure to Comply

Failure to implement such programs could leave companies at a higher risk of criminal liability, which now carries more severe and costly consequences.

Impact on Foreign Investment

The new law is expected to have a positive impact on foreign investment in Chile, as it demonstrates a strong commitment to combating corruption and promoting transparency. Chile has been an attractive destination for foreign investors due to its stable legal framework, low levels of corruption, and range of laws aimed at combating corruption.

• The law’s entry into force will contribute to creating a favorable economic climate that attracts more foreign investment.
• Investors must familiarize themselves with the new law and ensure that the companies in which they invest have implemented programs of compliance that meet the standards established by the law.

Key Takeaways

• The new law establishes new standards for corporate compliance in Chile.
• Companies operating in Chile must implement robust programs of compliance to prevent and detect economic crimes.
• Failure to implement such programs could leave companies at a higher risk of criminal liability.
• Investors must ensure that the companies in which they invest have implemented programs of compliance that meet the standards established by the law.

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For more information on how our firm is helping US and global companies navigate the new Chilean Anti-Corruption Law, please contact us.