Since September 2024, a Chilean company can be prosecuted for tax, environmental and workplace offences committed in its business — unless it has a prevention model that actually works. Here is who is covered, what is at stake and how to build a proportionate model.
Until 2023, Chilean companies could be criminally liable for a short list of offences, mostly bribery and money laundering. The Economic Crimes Law, Law 21,595, changed that. It classifies some 250 to 300 offences as economic crimes, toughens penalties for executives, and — since 1 September 2024 — makes companies criminally liable for most of them.
The reform reaches every company operating in Chile, whatever its size or owner, including subsidiaries of foreign groups. The practical question for a foreign owner is simple: does the Chilean company have a prevention model that actually works? Without one, it has almost no defence.
Law and practice: Law 21,595, published 17 August 2023; amendments to Law 20,393 on corporate criminal liability in force from 1 September 2024.
| Category | What it covers | Examples |
|---|---|---|
| 1 — always economic | Offences that are economic crimes whoever commits them | Securities and banking offences, insider trading, collusion |
| 2 — when linked to a company | Offences committed in a company’s activity or for its benefit | Fraud, tax offences, environmental offences, labour and health-and-safety offences, IP offences |
| 3 — officials with a company | Offences by public officials involving a company | Bribery, embezzlement, fraud against the State |
| 4 — laundering and receiving | Laundering or handling the proceeds of the above | Money laundering, receiving stolen goods |
Category 2 is the one that catches ordinary businesses. A tax offence, an environmental breach or a fatal workplace accident caused by negligence can now lead to a criminal case against the company itself, not just its managers.
Law and practice: Law 21,595, arts. 1–4.
Who commits the offence
Owners, managers, employees — and outside service providers acting for the company.
In the company’s activity
The offence happens within the business, not as a private act.
Lack of a working model
The offence was made easier because no effective prevention model was in place.
No benefit required
Since 2024 the company need not have benefited from the offence.
Two points matter to foreign groups. A parent can be liable for a subsidiary’s offence if the subsidiary has no real autonomy. And the company’s liability is autonomous: it can be convicted even if the individual is never identified or convicted.
Law and practice: Law 20,393 as amended, arts. 3 and 5.
| Penalty for the company | Range |
|---|---|
| Fine | Day-fines: 2–400 units (up to 600 in aggravated cases) × 5–5,000 UTM each, set by revenue |
| Overall cap | About 2,000,000 UTM — roughly CLP 144 billion |
| Dissolution | For the most serious cases |
| Ban on contracting with the State | 3 years to permanent |
| Loss of public benefits | 1 to 5 years |
| Court-appointed supervision | 6 months to 2 years |
| Publication and confiscation | Of the judgment; of proceeds and instruments |
For a company that sells to the Chilean State or relies on public programmes, the bans can hurt more than the fine. Court-appointed supervision means an outside supervisor inside the company for up to two years.
Law and practice: Law 20,393 as amended; Supervision Regulation (Decree 97 of September 2024). UTM CLP 72,151 for October 2026.
Identify the activities where offences could occur, for your sector and your Chilean operation.
Rules for the risky processes — payments, tenders, permits, environmental and safety obligations.
A confidential, protected way for staff and third parties to raise concerns.
Internal sanctions for breaches, applied in practice.
Compliance clauses in contracts with employees and suppliers.
A person with autonomy and resources, reporting to the board.
Periodic evaluation by someone outside the process.
Certification by a registered firm is useful evidence, but since 2024 it no longer exempts the company on its own: the court looks at whether the model works. A model copied from a template, unknown to staff and never tested, will not hold up.
Law and practice: Law 20,393 as amended, art. 4; Financial Market Commission (CMF) ruling 31,445 of February 2025 on certifiers.
Prosecutors have brought few cases under the new regime so far, and convictions are rare. The direction is clear, though. In March 2026 the fishing company Blumar was charged over a fatal accident at sea — the first case of a company charged with negligent homicide. The court refused the prosecutor’s request for interim supervision, but the case continues.
For a small foreign-owned company, the realistic risks are tax offences, environmental breaches and workplace accidents. Those are the areas to cover first.
Size the model
A five-person sales office needs a short, real model; a plant needs much more.
Give the subsidiary autonomy
Local management, local decisions, local records — to limit group liability.
Check your service providers
Accountants, customs agents and contractors can make the company liable.
Train and record
Training, channel reports and reviews are your evidence.
Review yearly
A model that does not change with the business stops being effective.
Law 21,595, published in August 2023, which classifies some 250–300 offences as economic crimes and, since September 2024, makes companies criminally liable for most of them.
Yes. It applies to every company in Chile, including subsidiaries of foreign groups, and a parent can be liable where the subsidiary lacks autonomy.
When an insider or service provider commits a covered offence in the company’s activity and it was made easier by the lack of an effective prevention model. Benefit to the company is no longer required.
Fines of up to about 2,000,000 UTM, dissolution, bans on contracting with the State, loss of public benefits, supervision of up to two years and publication of the judgment.
A risk assessment, protocols, a reporting channel, internal sanctions, contract clauses, a compliance officer and periodic independent review.
No. Since 2024, certification is evidence, but the court decides whether the model was effectively implemented.
Legally it is not mandatory, but without one a company has almost no defence. The model should be proportionate to size and risk.
The other compliance deadline for 2026.
Set up with compliance built in.
Tell us what your Chilean company does and how big it is. We scope a proportionate prevention model with Chilean counsel — fixed quote within one business day.
We use Google Analytics to see which pages help visitors, only if you agree. Security cookies and your choice are always stored. Cookie policy
Tell us what you need. We’ll reply within one business day.
We’ll reply within one business day, by email or WhatsApp.
or message us on WhatsApp