Compliance in companies: new challenges after the promulgation of the new economic crimes law
Posted on 3/9/2023
On July 20, 2023, the Chilean Congress enacted Law No. 22,450, which systematizes economic crimes in the Penal Code. This law introduces important new developments in compliance, which companies must take into account to avoid legal sanctions.
Compliance and new economic crimes
Susana Sierra, Former president of Chile Transparente and founder of BH compliance, analyzes in her article "Compliance and new economic crimes" published in the Diario Financiero, the impact of the new economic crimes law on compliance.
- The new law introduces a series of new features, among which are:
- The creation of new economic crimes, such as subsidy fraud, fraud against the Public Administration and consumer fraud.
- The obligation to implement a compliance program for companies that are exposed to new economic crimes.
- The criminal liability of legal entities for crimes committed by their employees.
- The increase in penalties for economic crimes.
What are the new economic crimes?
The new law creates a series of new economic crimes, including:
- Subsidy fraud: Obtaining subsidies or public aid through deception or fraud.
- Fraud against the Public Administration: Obtaining an economic benefit through deception or fraud against the Public Administration.
- Consumer fraud: The sale of defective or dangerous products or services.
- Corruption in the private sphere: The giving or receiving of gifts to obtain or maintain an economic benefit.
- Market abuse: Carrying out stock market operations with insider information.
The author of the article maintains that the new law represents a significant challenge for companies, which must implement an adequate compliance program to avoid legal sanctions.
What does the new law mean for companies?
The new law implies a series of changes for companies, including:
- The obligation to implement a compliance program: Companies that are exposed to new economic crimes are obliged to implement an appropriate compliance program.
- Criminal liability of legal entities: Legal entities may be criminally liable for crimes committed by their employees.
- Increased penalties: Penalties for economic crimes have been increased in the new law.
Specifically, the author recommends that companies:
Assess your exposure to new economic crimes.
Implement a compliance program that includes a code of conduct, internal controls and employee training.
Periodically review your compliance program to ensure its effectiveness.
The article concludes that the new law is an opportunity for companies to improve their compliance culture and reduce their risk of suffering legal sanctions.
In summary: The new law on economic crimes introduces a series of new features that expand the scope of application of compliance in Chile. Companies that are exposed to new economic crimes are required to implement an appropriate compliance program. An effective compliance program can help companies avoid legal sanctions and improve their reputation.