The updated law includes a significant increase in the underlying offenses for which legal entities can be held criminally responsible, as well as changes to certain criteria regarding the attribution of criminal liability and the legal requirements that Crime Prevention Models must meet.
In an important advance for business regulation, the Government enacted modifications to the Corporate Criminal Liability Law, aiming to strengthen corporate accountability and improve risk prevention mechanisms. This legislation introduces critical measures requiring companies to adopt more robust prevention models and significantly expands the role of lawyers in implementing and overseeing these policies.
The legislation introduced various innovations within the socioeconomic framework, notably organizing business-related offenses into four categories, creating new offenses—such as adding a new section to the Penal Code titled “Environmental Offenses”—and establishing new penalties and sanctions, as well as strengthening existing ones.
The amendments to Law No. 20,393, effective as of September 1, 2024, fundamentally increase the number of underlying offenses for which legal entities can be held criminally liable, and change certain criteria related to the attribution of criminal liability and the legal requirements that Crime Prevention Models must meet.
Crime Prevention Model
One of the main innovations in this legislation is the requirement for companies to implement a crime prevention model that incorporates adequate practices to detect and prevent criminal activities. These models must include:
- Clear Internal Policies: Detailed standards and procedures for business conduct and crime prevention.
- Training and Awareness: Ongoing training programs for employees and executives on business ethics and regulatory compliance.
- Auditing and Monitoring: Mechanisms for constant supervision and evaluation of the effectiveness of the prevention model.
- Whistleblowing Channels: Secure and confidential procedures for reporting irregularities or suspicious behavior.
In this new context, the role of legal teams becomes essential, as they will need to design Crime Prevention Models tailored to each company’s business, enabling the creation and implementation of policies and procedures that comply with legal requirements and address the criminal risks inherent in their activities.
“This law not only seeks to increase corporate responsibility and reduce the risk of business-related crimes but also to foster a culture of compliance and ethics in the corporate sphere. Collaboration between companies and lawyers will be essential for the success of this regulation and for creating safer and more responsible business environments,” says Belén Quezada, senior attorney at Apparcel Uriarte (https://apparcel.cl/).
The role of legal teams, especially lawyers, will be crucial in this new landscape, as they must conduct periodic reviews to ensure that prevention policies are effective and up-to-date; provide ongoing advice on legal risks and best practices to mitigate potential crimes; and defend companies in cases of investigations or accusations related to non-compliance with this regulation.
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