The lowdown on Chile’s financial and environmental crimes law

The lowdown on Chile’s economic and environmental crimes law

Economic and environmental crimes law No. 21,595 arrived onto Chile’s statute books in August.

The legislation constitutes a big systemic overhaul that toughens punishments for economic crimes and crimes towards the environment. 

Mainly, the law establishes new prison offenses, boosts penalties for financial crimes and expands prison liability.

In terms of environmental crimes, some factors of the regulation punish certain actions these kinds of as concealment of facts when other individuals are aimed at defending ecosystems and locations. 

To get an overview of the new legislation, BNamericas performed an e mail interview with Jorge Guerrero, spouse at Chilean legislation organization Guerrero y Cía Abogados.

BNamericas: What political sector promoted this legislation and what were being the justifications?

Guerrero: Regulation No. 21,595, on financial crimes, posted in the formal gazette on August 17, 2023, is rooted in the so-identified as anti-abuse agenda, declared at the close of 2019 by the federal government of President Sebastián Piñera. The 1st phase of its passage by means of congress corresponded to a parliamentary motion submitted by 14 legislators from distinctive political spheres, who introduced a bill based on a draft devised by an tutorial fee comprising outstanding legal lawyers.

In summary, the justifications of the legal textual content look for to provide a authorized-legal response to the social opposition created by crimes of an economic character and their impression on economic community get, for which objective the financial criminal technique is strengthened, developing more robust and more helpful sanctions.

BNamericas: What are the pillars or essential elements of the new economic crimes law?

Guerrero: The essential pillars of the economic crimes regulation are the subsequent: a) Adaptation of the program for deciding and substituting penalties in the area of financial crimes b) Standard reform of the method of pecuniary penalties and disqualification c) Reform of the legal liability of legal entities, considerably increasing the record of base crimes and d) Partial reforms of traditional substantive legal legislation.

The very first group of financial crimes is those people that the regulation considers “unconditionally financial,” given that it is not vital for particular situation to be existing for them to be considered as this sort of. 

The second category is the 1 that establishes “conditional economic crimes,” in the scenario of prison offenses that, currently being dedicated in a non-financial context, purchase the class of financial crimes only when there is a connection aspect with medium or large corporations. 

The third classification is also “conditional,” obtaining the character of economic crimes to the extent that a relationship issue exists among the type or context of carrying out the crime and the effectiveness of enterprise routines. 

The fourth category is an extension of the previous classes, relating to the receipt, laundering and reconversion of property. In this regard, it is specially truly worth taking into consideration that, for the needs of criminal liability of legal entities, the 4 classes of economic crimes are applicable, no issue regardless of whether they are deemed economic crimes in the aforementioned law.

BNamericas: To what form of enterprise does this new legislation use?

Guerrero: The scope of application of prison liability of lawful entities was considerably expanded to contain authorized entities underneath personal law community firms established by legislation condition businesses, societies and universities political events and religious lawful entities below public regulation.

BNamericas: What are the implications for businesses?

Guerrero: From the moment in which the scope of application of prison liability of lawful entities was expanded to new entities and given that a big number of legal categories ended up included to the listing of base crimes applicable to authorized entities, the implications of the legislation of financial crimes for a business are of fantastic magnitude, being appropriate for their pursuits that they successfully apply an adequate crime avoidance design, in buy to exempt it from criminal legal responsibility.

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