On September 1, 2024, new rules came into force in Chile that make legal entities criminally liable for economic crimes. This expands the obligations of companies to prevent and respond to illicit activities.
On September 1, 2024, important amendments to Law No. 20,393 on Corporate Criminal Liability in Chile, introduced by Law No. 21,595 on Economic Crimes, came into force . These new regulations, which were published in the Official Gazette on August 17, 2023, strengthen the legal framework and increase the obligations of companies to prevent and respond to economic crimes.
The main changes include the systematisation of corporate crimes into four specific categories to facilitate their identification and prosecution, the creation of new crimes such as “Attacks on the environment”, and the toughening of penalties, allowing legal entities to be punished for crimes committed in their name or for their benefit, even without obtaining a direct economic benefit.
Companies now face greater challenges in complying with the new regulations. They must implement and reinforce crime prevention models that are effective and aligned with the standards required by the Law. Santiago Ortúzar, partner in the Compliance area at Alessandri Abogados, emphasizes that “the entry into force of these modifications has significantly raised the compliance standard required of companies. It is not enough to have policies; they must be implemented and lived day to day in the organization.”
Luis Fuentes, partner at Alessandri Abogados, adds: “The most relevant aspect of this new stage is that companies can now be criminally charged for acts committed under their name. This requires companies to review and strengthen their crime prevention models, since the legal consequences can be severe, including the extinction of legal personality.”
Organizations must review and adjust their protocols to align with the new regulations. It is crucial to adapt internal policies by creating or improving the Crime Prevention Model; including training for all staff and a detailed risk analysis to update the risk matrix and respond effectively to possible scenarios.
These changes underline the need for companies to operate under stricter standards of integrity and responsibility, adapting quickly to an increasingly demanding legal environment.