Economic Crimes Law: the new standard of criminal liability for senior management and the board

The entry into force of the new Economic Crimes Law (Law 21.595) is not a simple regulatory update; it's a tectonic shift in the rules of corporate Chile. Historically, sanctions for regulatory failures fell almost exclusively on the company's assets through fines. Today, the Public Prosecutor's focus has shifted to individuals: senior management and the board.

The 'false comfort' of paper compliance

The biggest risk we see in Chilean companies today is a false sense of security. Many boards operate under the assumption that having a Crime Prevention Model (CPM) sitting in a drawer, or having appointed a pro-forma Compliance Officer, is enough to protect them.

The new law is unforgiving on this point: if the model isn't effective, real, and tailored to the operation's specific risks, it stops being a mitigating factor. Decision-makers today face real prison sentences and an absolute ban from holding managerial or public-sector positions. The corporate shield has disappeared.

A practical case: when an operational error becomes a criminal offense

Take the mining industry and lithium project development as an example. Until recently, an environmental incident (such as a leak or poor tailings management) resulted in a formal proceeding and a fine from the Superintendency of the Environment (SMA).

Under the new legislation, environmental harm has been classified as an economic crime. That means the same operational incident can now rapidly escalate into a direct criminal investigation against the General Manager and the directors who, through negligence or inadequate oversight, allowed it to happen.

The board's new role: three uncomfortable questions

The standard of diligence required of directors has risen sharply. Every board should be asking its team these three questions today: Is our risk map up to date and does it cover the four categories set out in Law 21.595 — financial, tax, labor, environmental, and money-laundering crimes? Is our CPM 'live' or just 'on the shelf,' with traceable evidence of training and audits in practice? Do we have a criminal-crisis protocol if prosecutors raid our offices tomorrow over an anonymous complaint?

From legal theory to business certainty

Prevention is no longer a purely administrative matter to hand off to middle management; it requires legal, strategic, and corporate vision at the highest level.

At Dupouy & Méndez we don't just draft manuals. We build robust preventive defenses and conduct real risk audits, ensuring your board and management can keep making complex business decisions with genuine legal certainty and personal peace of mind.