Chile Takes Steps to Eradicate Fraud and Rebuild Trust
In the aftermath of a series of scandals that rocked Chile’s political, economic, and football industries in 2015, the government has been working tirelessly to regain the trust of its citizens and international partners. Led by President Michelle Bachelet, the government has implemented several measures aimed at preventing fraud and promoting transparency.
The Engel Commission: A Key Step Towards Eradication
One of the key steps taken was the creation of the Presidential Advisory Council against conflicts of interest, influence peddling and corruption, also known as the Engel Commission. The panel of experts drafted a comprehensive report with 234 proposals across five major areas:
- Prevention of corruption
- Regulation of conflicts of interest
- Financing policy to strengthen democracy
- Confidence in markets
- Integrity, ethics, and civil rights
Strengthening the Financial Analysis Unit (UAF)
The government also enacted Law 20,818 on February 9, 2015, which strengthened the Financial Analysis Unit (UAF) by increasing its powers to prevent terrorist financing. The new law requires more than 1,000 public services to report all suspicious transactions related to money laundering and terrorism financing.
Impact on Public and Private Sectors
The changes made by the government are expected to have a significant impact on both the public and private sectors:
- For the public sector, the challenge is to implement new mechanisms for analyzing and reporting suspicious transactions under the UAF methodology.
- For the private sector, particularly small and medium-sized enterprises (SMEs), the new law requires them to design and strengthen their governance structures.
Building a Culture of Transparency and Accountability
The measures taken by the government are seen as a step towards rebuilding trust in institutions and promoting a culture of transparency and accountability. As President Bachelet emphasized, “We need to work together to create a society where corruption is not tolerated.” The importance of cooperation between government, civil society, and the private sector cannot be overstated.
A Brighter Future Ahead?
As Chile continues on its path towards eradicating fraud and rebuilding trust, it remains to be seen whether these efforts will pay off. However, with a renewed commitment to transparency and accountability, the country is taking concrete steps towards a brighter future.