CHILE: An Introduction to Dispute Resolution: White-Collar Crime

Chile’s white-collar crime framework has been transformed over the past 15 years and is now entering a decisive new phase. Recent reforms have reshaped most elements of corporate risk, broadening liability and demanding more from companies in terms of compliance and governance.

A New Landscape of Corporate Risk

Traditionally, Chilean law treated crime as an individual phenomenon. Since the Corporate Criminal Liability Law of 2009, however, companies themselves can be held criminally responsible. The list of offences has grown from just three to more than 200, with the 2023 Economic and Environmental Crimes Law creating the concept of “economic crimes” that include fraud, market manipulation, collusion, bankruptcy misconduct and a wide range of environmental violations.

From August 2024, any of these offences can trigger corporate liability if linked to company agents and not prevented by an “effective” compliance programme. This shift means that corporate risk is no longer confined to financial or corruption cases but now extends into environmental, cyber and product liability spheres.

Corporate and Individual Exposure

Companies can avoid conviction if they have a prevention model that fits their size, sector and risk profile. These programmes must identify risks, establish clear detection and reporting mechanisms, and be overseen by empowered compliance officers. Absent such measures, prosecution can target both the entity and individuals. While corporate and managerial liability remain formally separate, regulators increasingly demand accountability at board and senior management levels, especially in transactions involving mergers or asset transfers.

Enforcement and Regulatory Environment

The Public Prosecutor’s Office leads criminal investigations, supported by specialised police brigades and with the collaboration of regulators such as the Financial Market Commission, the Internal Revenue Service and the Financial Analysis Unit. Their overlapping powers mean that companies often face simultaneous administrative and criminal proceedings. Courts have generally upheld this dual system, which increases the exposure of businesses operating in regulated sectors.

Investigative Tools and Internal Reviews

Prosecutors have broad subpoena powers and access to advanced investigative techniques, including digital forensics and asset tracing. Companies themselves are encouraged to conduct internal investigations as part of compliance, but these materials can be seized by prosecutors unless protected by attorney-client privilege. For that reason, many corporations rely on law firms to preserve confidentiality. Voluntary disclosure of findings may mitigate sanctions.

Sanctions and Alternative Resolutions

Penalties for individuals have become stricter, with senior officers facing higher risks of actual imprisonment. Companies, in turn, may be sanctioned with fines, disqualification from public contracts or even dissolution. Chilean law also provides for settlement agreements and conditional suspension of proceedings, while recent reforms have introduced “effective co-operation” mechanisms that can substantially reduce sanctions or, in exceptional cases, avoid prosecution.

Sectoral Hotspots

Certain industries face heightened scrutiny.

• Natural resources (mining, energy, forestry, aquaculture) – environmental offences qualify as economic crimes.
• Retail and digital platforms – data protection risks are increasing under the new Data Protection Law.
• Financial institutions and fintech – strict anti-money laundering rules and cybercrime exposure.
• Public procurement sectors (construction, healthcare) – bribery and bid-rigging remain key risks.

Compliance Imperatives and Outlook

Regulators now measure compliance by looking at how deeply prevention is integrated into decision-making, budget allocations and board oversight, rather than by means of a physical manual. Whistle-blower channels, independent audits and real enforcement of policies are essential.

Looking forward, three developments will shape Chile’s white-collar terrain:

• broader use of co-operation agreements by the Public Prosecutor;
• early jurisprudence applying the Economic and Environmental Crimes Law; and
• stronger cross-border enforcement through international treaties, particularly in tax and cybercrime matters.

For companies, the message is clear: those that embed best-practice prevention models, update risk assessments regularly and respond swiftly to red flags will not only avoid sanctions but also gain a competitive edge in a market increasingly driven by transparency and robust governance.