The new era of corporate criminal liability
Law 21.595 on Economic Crimes, effective since August 2024, radically transformed Chile's compliance landscape. It's no longer just about Law 20.393: the catalog of crimes that can generate criminal liability for companies expanded from 9 to over 200 criminal offenses.
What changed with Law 21.595?
The most relevant changes for companies include:
•Expanded catalog: Tax, customs, environmental, consumer and securities market crimes now generate criminal liability for legal entities
•Harsher penalties: Penalties now include disqualification from government contracts, loss of tax benefits and significantly higher fines
•Asset forfeiture: Profits obtained through criminal conduct can be completely seized
•Effective cooperation: Incentives were created for companies to report internal irregularities
Crime Prevention Model (CPM)
Article 4 of Law 20.393 establishes that companies can be exempt from criminal liability if they demonstrate having an effective Crime Prevention Model that includes:
1.Compliance officer: Designated person with autonomy, resources and direct access to the board
1.Risk identification: Mapping of activities and processes that could give rise to crimes
1.Protocols and procedures: Clear rules to prevent identified risky behaviors
1.Reporting channel: System for anyone to report irregularities anonymously
1.Internal sanctions: Disciplinary procedure for those who violate protocols
1.Supervision and certification: Periodic model audits by an independent third party
Who is obligated?
•Public corporations: CPM mandatory
•State-owned companies: CPM mandatory
•Companies with 100+ workers: CPM highly recommended
•All legal entities: Subject to criminal liability
How Audty strengthens your CPM
Audty integrates the essential elements of the Crime Prevention Model:
•Certified reporting channel meeting Article 4 legal requirements
•Complete traceability of each investigation to demonstrate due diligence
•Management reports serving as evidence during audits
•AI-assisted risk identification based on industry and company size
•Automated documentation for certifications and external audits
