Key amendments to the Economic Crimes Law for companies enter into force

On 1 September 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 rules, which were published in the Official Gazette on 17 August 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 offences into four specific categories to facilitate their identification and prosecution, the creation of new offences such as ‘Environmental Offences’, and the tightening of sanctions, allowing legal persons to be punished for offences committed on their behalf or for their benefit, even without direct financial gain.

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 of the Compliance area at Alessandri Abogados, emphasises that “the entry into force of these amendments has significantly raised the standard of compliance required of companies. It is not enough to have policies; they need to be implemented and lived day by day in the organization”.

Luis Fuentes, an associate 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, as the legal consequences can be severe, including the termination of legal personality”.

Organisations 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 accountability, adapting quickly to an increasingly demanding legal environment.