Financial Crime World

Chile Passes New Law to Combat Economic Crimes

A Major Step Towards a More Transparent and Accountable Business Environment

Santiago, Chile - In a significant move to combat economic crimes, Chile has passed a new law that requires companies to implement robust compliance programs to prevent and detect illegal activities. The law, which comes into effect in August 2024, aims to hold companies accountable for their actions and deter corruption.

Key Requirements of the New Law

  • Companies operating in Chile must have resources adequate to investigate and report any suspicious activity to senior management.
  • Companies must also have the necessary faculties to act quickly and decisively to prevent or mitigate harm caused by illegal activities.
  • Independent third-party auditors and monitors will review and ensure compliance with the new regulations.

Impact on Businesses

  • The law’s measures are designed to create a more transparent and accountable business environment, which should attract more foreign investment.
  • Companies operating in Chile must take immediate action to review and strengthen their compliance programs to avoid potential legal consequences.
  • Foreign investors who invest in Chile should also be aware of the new law’s requirements and ensure that they are investing in companies that have implemented robust compliance programs.

Expert Insights

“The new law demonstrates Chile’s commitment to combating economic crimes and ensuring that companies operate with integrity,” said Jeffrey Lehtman, a partner at Miller & Chevalier, a Washington D.C.-based law firm. “Companies must be proactive in implementing robust compliance programs to ensure they are in line with the new regulations.”

What You Need to Know

  • Companies operating in Chile must review and strengthen their compliance programs immediately.
  • Senior executives should have direct access to reports of suspicious activity.
  • All employees must understand their roles and responsibilities in preventing economic crimes.

The full implications of this new law are significant, and companies operating in Chile would benefit from seeking legal advice to ensure they are fully compliant with the new regulations. Contact Miller & Chevalier for more information on how we can help your company navigate the new Law on Economic Crimes in Chile and strengthen its compliance program.

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