The Importance of Whistleblower Channels in Chile's Economic Crimes Law

Introduction

Law No. 20,393 on Criminal Liability of Legal Entities for Money Laundering, Terrorism Financing, and Bribery Crimes, known as the "Economic Crimes Law," represents a fundamental milestone in the fight against corporate corruption in Chile. This regulation not only establishes criminal liability for companies but also recognizes the critical importance of whistleblower channels as a preventive and early detection tool.

The Chilean Legal Framework

Regulatory Evolution

Chilean legislation has evolved significantly since the enactment of Law 20,393 in 2009, progressively expanding the catalog of crimes that can generate corporate criminal liability. It currently includes:

  • Money laundering crimes (Law No. 19,913)
  • Terrorism financing (Law No. 18,314)
  • Bribery crimes (Criminal Code, articles 248 bis and following)
  • Receipt of stolen goods (Criminal Code, article 456 bis A)
  • Unfaithful administration (Law No. 18,045, article 59)
  • Unfair competition (DL No. 211)
  • Water contamination (Criminal Code, articles 136 and following)

Compliance Requirements

The law establishes that companies can be exempted from criminal liability through the implementation of an effective crime prevention model, which must mandatorily include:

  1. Designation of a compliance officer
  2. Risk identification and assessment
  3. Establishment of policies and procedures
  4. Personnel training
  5. Reporting and investigation system
  6. Monitoring and auditing

Whistleblower Channels as a Fundamental Pillar

Preventive and Detective Function

Whistleblower channels are not merely a formal requirement but constitute the nervous system of the prevention model. Their importance lies in:

Early Detection: They allow identification of irregular conduct before it materializes into crimes or generates significant damage.

Deterrent Effect: The existence of effective channels creates a control environment that discourages the commission of illicit conduct.

Evidence of Commitment: They demonstrate to courts the company's real commitment to crime prevention.

Essential Characteristics

To be effective in the context of Chilean law, whistleblower channels must meet specific standards:

Accessibility

  • Multiple reporting channels: Phone, digital, in-person
  • 24/7 availability: Especially for critical situations
  • Ease of use: Intuitive interfaces and simplified processes

Confidentiality and Anonymity

  • Identity protection: Systems that safeguard whistleblower information
  • Optional anonymity: Possibility of making anonymous reports
  • Information segregation: Restricted access according to roles and responsibilities

Whistleblower Protection

  • Prohibition of retaliation: Clear policies against retaliation
  • Case follow-up: Mechanisms to monitor whistleblower treatment
  • Alternative channels: Options independent of direct hierarchical lines

Organizational Benefits

Legal Risk Reduction

Effective implementation of whistleblower channels can mean the difference between criminal liability and exoneration. Chilean courts have consistently recognized that:

  • The existence of effective channels is evidence of a robust prevention model
  • The absence or ineffectiveness of these systems can be a determining factor in conviction
  • Effective use of channels can significantly mitigate sanctions

Reputation Protection

In the Chilean business environment, where corporate reputation is a fundamental asset, whistleblower channels offer:

  • Proactive crisis management: Identification and resolution of problems before they become public
  • Demonstration of transparency: Clear signal to stakeholders about ethical commitment
  • Scandal prevention: Reduced risk of negative media exposure

Continuous Improvement

Whistleblower channels generate valuable information for:

  • Identifying process weaknesses: Detection of systematic failures
  • Optimizing controls: Adjustment of preventive measures based on real data
  • Targeted training: Education focused on highest risk areas

Implementation Challenges

Organizational Culture

The biggest obstacle is usually cultural resistance. In Chile, where personal relationships are fundamental in the business environment, it is common to find:

  • Fear of retaliation: Concern about work or personal consequences
  • Distrust in the system: Skepticism about effectiveness and confidentiality
  • Misunderstood loyalty: Confusion between personal loyalty and institutional responsibility

Technical Aspects

Technical implementation presents specific challenges:

  • Integration with existing systems: Compatibility with current infrastructure
  • Scalability: Ability to handle variable volumes of reports
  • Record keeping: Compliance with traceability and audit requirements

Best Practices

System Design

Multiple Channels: Implement various communication channels to adapt to different preferences and situations.

Appropriate Technology: Use tools that guarantee security, confidentiality, and ease of use.

Effective Communication: Develop dissemination campaigns that clearly explain the purpose and operation of the system.

Monitoring and Improvement

Performance Metrics: Indicators that allow evaluation of system effectiveness.

Regular Audits: Periodic reviews to identify improvement opportunities.

Benchmarking: Comparison with industry best practices.

Conclusion

Whistleblower channels represent much more than a legal requirement within the framework of Chile's Economic Crimes Law. They are strategic tools that, when effectively implemented, can transform organizational culture, significantly reduce legal and reputational risks, and contribute to the development of a more transparent and ethical business environment.

International experience and local jurisprudence confirm that organizations that invest in robust reporting systems not only better comply with their legal obligations but also develop sustainable competitive advantages over time.

In a context where social and regulatory tolerance for corporate corruption is increasingly lower, whistleblower channels become a fundamental strategic investment for the sustainability and long-term success of any organization operating in Chile.

For more information about implementing whistleblower channels and regulatory compliance, visit www.janusgrc.cl or www.anguitaosorio.cl