A New Era of Corporate Responsibility
The enactment of the Economic Crimes Law in August 2023 marks a before and after in Chile's regulatory landscape. This legislation, considered the most substantive reform to the Criminal Code since 1874, not only systematizes economic and environmental crimes but fundamentally redefines corporate responsibility and exponentially elevates the risks of not having adequate Governance, Risk, and Compliance (GRC) systems.
For directors, managers, and administrators, this law represents a paradigmatic shift: risk management is no longer optional, it's a legal obligation with direct criminal consequences.
The Three Pillars of the New Regulation
1. Systematization of Economic Crimes
The law establishes four categories of economic crimes, each with specific implications for business management:
First Category: Protection of economic functioning
- Unfair competition
- Banking system manipulation
- Securities market fraud
Second Category: Corporate patrimonial crimes
- Embezzlement in corporate context
- Fraud committed in corporate positions
- Disloyal administration
Third Category: Public-private corruption
- Bribery of public officials
- Influence peddling
- Collusion in public tenders
Fourth Category: Money laundering
- Receiving products of economic crimes
- Capital laundering
- Concealment of illicit origin
2. Expanded Criminal Liability for Legal Entities
The reform dramatically expands the catalog of crimes attributable to companies:
- From approximately 10 crimes to over 200 criminal types
- Elimination of exclusive "interest or benefit" requirement
- New judicial supervision figures
- More demanding requirements for Prevention Models
3. Environmental Criminal Liability System
For the first time, Chile has a systematic environmental criminal regime:
- Evasion of Environmental Impact Assessment System
- Repeated violations of environmental regulations
- Serious damage to natural resources
- Aggravating factors for damage in protected areas
Why Your Company Needs a Robust GRC System
1. Proactive Criminal Risk Management
An effective GRC system identifies and mitigates risks before they materialize into crimes:
Risk Mapping: Systematic identification of exposures to economic crimes according to business activity
Continuous Assessment: Permanent monitoring of regulatory changes and risk evolution
Preventive Controls: Implementation of specific barriers for each category of economic crime
2. Strengthening Crime Prevention Models
The new law toughens requirements for Prevention Models to act as exemptions:
Periodic Evaluations: Mandatory reviews by independent third parties
Continuous Updates: Improvement mechanisms based on evaluations
Specialized Supervision: Possible judicial imposition of external supervisors
Complete Traceability: Exhaustive documentation of all preventive measures
3. Whistleblowing Channel as Central Element
A robust ethical channel becomes a fundamental piece of the GRC system:
Early Detection: Identification of possible crimes before their consummation
Whistleblower Protection: Mechanisms that encourage internal reporting
Structured Investigation: Processes that ensure adequate response to reports
Commitment Demonstration: Evidence to authorities of organizational commitment
4. Integrated Regulatory Compliance
The complexity of the new regulation requires integrated compliance systems:
Multiple Regulations: Coordination between criminal, environmental, and sectoral compliance
Unified Reports: Systems that centralize information for different regulators
Specialized Training: Programs that specifically address economic crimes
Continuous Monitoring: Automatic alerts about relevant regulatory changes
Sector-Specific Implications
Financial Sector
- Elevated Risk: Multiple categories of applicable economic crimes
- Specialized Controls: Anti-money laundering, market manipulation, fraud
- Intensive Supervision: Regulators with new sanctioning powers
Real Estate and Construction Sector
- Urban Crimes: New specific criminal figures
- Environmental Responsibility: Impact assessments and permits
- Supply Chain: Risks in contractors and suppliers
Mining and Energy Sector
- Environmental Crimes: Main focus of the new regulation
- Community Impact: Social considerations in risk assessment
- Sectoral Regulation: Coordination with specialized authorities
Health and Pharmaceutical Sector
- System Fraud: Crimes against social security and public health
- Clinical Research: New integrity standards
- Controlled Products: Special supervision regimes
GRC Implementation Strategies
Phase 1: Diagnosis and Risk Assessment
Comprehensive Risk Mapping
- Identification of activities exposed to economic crimes
- Evaluation of existing controls
- Gap analysis in current prevention model
Impact Assessment
- Quantification of criminal and reputational risks
- Cost-benefit analysis of preventive measures
- Action prioritization according to criticality
Phase 2: GRC System Design
Governance
- Organizational structure with clear responsibilities
- Specialized committees in risk management
- Direct reporting lines to the board
Technology
- Integrated risk management and compliance platforms
- Continuous monitoring systems
- Secure and accessible reporting channels
Processes
- Specific procedures by crime category
- Internal investigation protocols
- Crisis response plans
Phase 3: Implementation and Operation
Specialized Training
- Specific programs on economic crimes
- Training by role and responsibility
- Simulations and practical exercises
Monitoring and Control
- Key risk management indicators
- Specialized internal audits
- Regular reports to the board
Continuous Improvement
- Periodic evaluations by third parties
- Updates based on regulatory changes
- Lessons learned from cases and incidents
The ROI of a Robust GRC System
Quantitative Benefits
Reduction of Fines and Sanctions
- Prevention of sanctions that can reach millions of dollars
- Reduction of investigation and judicial process costs
- Lower probability of judicial supervision
Operational Efficiency
- Automation of compliance processes
- Reduction of regulatory duplications
- Optimization of control resources
Qualitative Benefits
Reputational Protection
- Maintenance of stakeholder confidence
- Strengthening of corporate image
- Competitive differentiation
Strategic Advantage
- Access to regulated markets
- Better financing conditions
- Attraction of institutional investors
Conclusion: GRC as Strategic Imperative
The Economic Crimes Law is not simply a new regulation; it's a fundamental transformation of the business risk environment in Chile. Organizations that don't adapt their risk management and compliance systems face not only devastating economic sanctions but also direct criminal liability for their executives.
A robust GRC system is no longer a competitive option; it's a business survival imperative. Organizations that implement comprehensive governance, risk, and compliance frameworks will not only comply with new legal obligations but will convert compliance into a sustainable competitive advantage.
Specialized Advisory
The technical and legal complexity of implementing effective GRC systems under the new regulation requires specialized advisory that combines legal, technological, and risk management expertise.
For organizations seeking to develop robust and effective compliance frameworks, we recommend consulting with specialists who can provide a comprehensive view of regulatory challenges and available technological solutions.
The team specialized in economic crimes and corporate GRC at Anguita Osorio has developed specific methodologies to help organizations navigate this new regulatory reality, transforming compliance into a strategic business strength.
This article constitutes general information about regulatory trends and best practices in risk management. For specific situations, specialized legal advice in economic crimes and corporate compliance is recommended.