Regulatory compliance refers to the standards established by companies at internal and external levels, best practices, Code of Ethics, Anti-Corruption, Risk Prevention in the workplace, Data Protection, Money Laundering, etc.
REGULATORY ENTITIES
FINANCIAL ANALYSIS UNIT (UAF)
The Financial Analysis Unit (UAF) is a decentralized public service, with its own legal personality and assets, which is related to the President of the Republic of Chile through the Ministry of Finance.
The UAF was created by Law No. 19,913 on December 18, 2003. Its objective is to prevent and impede the use of the financial system and other sectors of Chilean economic activity to commit the crimes of Money Laundering (ML) and Financing of Terrorism (FT). To do so, it conducts financial intelligence, issues regulations, oversees compliance, imposes administrative sanctions, and disseminates public information.
The UAF represents Chile before the Financial Action Task Force of Latin America (GAFILAT). In accordance with this role, it coordinates the National Anti-Money Laundering and Counter-Terrorism Financing System, in which the Central Bank of Chile participates; the Ministries of the Interior and Public Security, the Treasury and Foreign Affairs; the Superintendencies of Banks and Financial Institutions, Securities and Insurance, Casinos, and Pensions and Social Security; the Internal Revenue Service; the National Customs Service; the National Council for the Control of Narcotics and all subjects obliged to report suspicious operations of Money Laundering and Terrorism Financing to the UAF.
To exercise its preventive role, the UAF issues instructions, disseminates warning signals, trains the entities it supervises and controls compliance with the regulations it issues.
When the UAF detects indicative signs of Money Laundering or Financing of Terrorism in the Suspicious Operations Reports (ROS) sent by the obliged subjects, it sends reports to the Public Prosecutor's Office, which is the institution responsible for the investigation and criminal prosecution of both crimes.
GENERAL INTERNAL AUDIT COUNCIL OF THE GOVERNMENT (CAIGG)
The General Internal Audit Council of the Government is an advisory body to the President of the Republic on matters of internal auditing, internal control and administrative probity, created in 1997, by Supreme Decree No. 12 and modified by Supreme Decree No. 147 of 2005, both of the Ministry of the General Secretariat of the Presidency.
Its function is to permanently develop a technical coordination of the activity of the internal audit units of the Public Services dependent on or related to the Executive, support the generation and maintenance of adequate control environments, prepare technical documentation, provide general guidance and advice on matters of internal auditing, internal control and administrative integrity and carry out permanent monitoring of the control objectives defined at each level of the Administration.
It is technically coordinated with Ministries, Undersecretaries of State, Mayors and Heads of Service, taking into account that the control action of the active administration requires integrating experiences and exchanging information that allows preventing the occurrence of practices that are at odds with the sound administration of public resources, together with the application of technical principles aimed at honest and transparent management.
SYSTEM OF ENTERPRISES (SEP)
The SEP is a Committee created by the Corporation for the Promotion of Production (CORFO) as a technical advisory body to the State, in relation to the evaluation of the management and corporate governance of state sector companies, which relate to the Government through the different Ministries and whenever it is expressly required to do so.
The SEP concentrates the decisions and representation that are the responsibility of the State as owner and of CORFO as shareholder in certain companies in the state sector, providing general guidance and guidelines, ensuring compliance with the specific objectives of each of them, facilitating the sharing of their experiences and particular learnings and the development of synergies when possible.
REGULATORY LAW No. 19,913
REGULATORY LAW No. 19,913
Law No. 19,913, published in the Official Gazette on December 18, 2003, created the Financial Analysis Unit (UAF) and modified the Criminal Code regarding money laundering.
The above is in response to the need for the country to have a specialized institution with appropriate functions to prevent and control money laundering, with the aim of preventing the use of the financial system and other sectors of economic activity to legitimize illicit profits.
PRECEDING CRIMES OF MONEY LAUNDERING IN CHILE
The so-called “base or precedent crimes” of money laundering (ML) are those whose product – money or goods – is sought to be hidden or concealed, given its illicit origin. Drug trafficking is only one of these precedent crimes, since it is joined by bribery, misappropriation of public funds, the use of privileged information, the promotion of child prostitution and terrorism, among many others. All of them produce resources obtained illegally, a condition that criminals seek to clean up by introducing them into the economy through legal activities.
WARNING SIGNS
Describes those behaviors or characteristics of certain operations or people, which could lead to detecting a suspicious operation of money laundering or terrorist financing.
OTHER LAWS
REGULATIONS
CIRCULAR Nº 54
OFICIO CIRCULAR Nº 20
CIRCULAR Nº 53
INTERNATIONAL RECOMMENDATIONS
GAFI
On February 16, 2012, the Financial Action Task Force (FATF), which includes the world's 34 largest economies, approved 40 Recommendations to combat Money Laundering (ML) and Terrorist Financing (TF). These standards replaced the previous 40 Recommendations against Money Laundering, issued in 1990, and the 9 Special Recommendations against Terrorist Financing, issued in 2001, after the attack on the Twin Towers.
The 40 new Recommendations were reviewed for two years before their promulgation and are currently used by more than 180 jurisdictions to combat such crimes. The Financial Action Task Force of Latin America (GAFILAT) is the regional counterpart of FATF, whose 12 member countries – including Chile – adopted the new standards.
PALERMO CONVENTION
United Nations Convention against Transnational Organized Crime and its Protocols.
REGULATORY LAW No. 20,393
CRIMINAL LIABILITY OF THE LEGAL ENTITY
INTRODUCTION
With the entry into force of Law No. 20,393, dated December 2, 2009, it was established that private legal entities and state companies are also criminally liable for the crimes established in article 1 of the aforementioned Law, where said regulations contemplate a voluntary way of avoiding criminal liability, consisting of designing and implementing a Crime Prevention Model (hereinafter "MPD").
MANUAL FOR THE PREVENTION OF
CRIMES LAW 20.393
LAW No. 20,393 RESPONSIBILITY
CRIMINAL LAW OF THE LEGAL ENTITY
PHONES
PREVENTION PLAN
The fundamental pillars of this national system are:
1.- PREVENTION: This area includes both the function of regulatory bodies and compliance with anti-money laundering and counter-terrorism financing regulations by operators in the financial and economic sectors.
2.- DETECTION: When any of the entities or persons regulated by Law No. 19,913 detects, in the exercise of its activities, any act, operation or transaction that, according to the regulations and anti-money laundering practices, meets the criteria of "suspicion" of money laundering, it has the legal obligation to immediately send such information to the UAF, through a Suspicious Operation Report (ROS). The UAF is the body responsible for developing financial intelligence processes on such information, in order to detect whether there are indications of money laundering operations or terrorist financing, in which case it orders its immediate referral to the Public Prosecutor's Office.
3.- PROSECUTION: The investigation and prosecution of money laundering and terrorist financing crimes is directed exclusively by the Public Prosecutor's Office. It has a specialized unit on Money Laundering, Economic Crimes, Environmental Crimes and Organized Crime (ULDECCO), which advises the prosecutors in charge of the cases on technical aspects. Within the framework of a criminal investigation, the Public Prosecutor's Office may request from the UAF any information it deems necessary for the investigations it is carrying out.
CRIME PREVENTION MANUAL (Law 19.913)
CODE OF CONDUCT
POLICIES
These links contain some of our Company's policies, such as the Corporate Responsibility Policy and the Quality Policy.
QUALITY POLICIES
CORPORATE RESPONSIBILITY POLICIES