Comprehensive Reform of Economic and Environmental Criminal Law in Chile: Law 21.595 – Addval Comprehensive Reform of Economic and Environmental Criminal Law in Chile: Law 21.595 – Addval

Comprehensive Reform of Economic and Environmental Criminal Law in Chile: Law 21.595

On August 17, 2023, Law 21.595 was published in the Official Gazette. This law establishes a systematization of economic crimes and environmental offenses, regulates the penalties and additional consequences applicable to individuals responsible for these crimes, and modifies various legal bodies to improve economic criminal law.

This legislation marks the most significant and profound reform our legal system has undergone in criminal matters, by systematizing, among other aspects, more than 200 crimes, such as those related to environmental offenses, cybersecurity, physical integrity, and the payment of wages and social security contributions for workers.

Regarding the imputation of criminal responsibility, it is now more flexible; it is sufficient for the crime to be committed by someone within the company or by third parties managing services for it, with or without its representation, and that the perpetration of the act is favored or facilitated by the lack of an adequate Crime Prevention Model (MPD).

Regarding sanctions, it introduces innovations in fines (fine-days), the penalty of confiscation of profits, the figure of the Crime Prevention Model Supervisor, prison sentences for individuals, among other things.

This law comes into effect for companies on September 1, 2024, and is already in effect for individuals.

Guillermo Ureta S.

Lead Compliance Partner

Specialist in business development with experience in revitalizing, improving, and expanding global organizations.

Experience in regulatory projects and technological developments for companies in Chile. Formation of multidisciplinary teams with agile methodologies in complex projects.

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KEY ASPECTS EFFECTIVE DATE: 09/01/2024 (COMPANIES)

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Accountability

  • Workers, executives, or third parties: with or without representation powers, as long as the incident occurs due to the lack of effective implementation of a crime prevention model.
  • Corporate group responsibility
  • No benefit to the company required

Assessment

  • The certification of the Crime Prevention Model is removed.
  • It is replaced by periodic evaluations conducted by independent third parties.
  • There must be mechanisms for improvement or updates based on such evaluations.

Penalties for Individuals

  • Specific disqualifications
  • Imprisonment or restrictions on freedom*
  • Confiscation of profits
  • Fines up to 22 million USD

Penalties for Individuals

  • Specific disqualifications
  • Imprisonment or restrictions on freedom*
  • Confiscation of profits
  • Fines up to 22 million USD