On September 26, the regulations governing the  supervision of legal entities , in accordance with the provisions of the  Law on Economic Crimes , were published in the Official Journal .

Among the most relevant modifications, the figure of supervision of the  legal entity was incorporated , which can be ordered by a court as a penalty, precautionary measure or condition of a conditional suspension of the procedure.

In addition, it seeks to ensure that companies that are part of the proceedings establish an  effective system for preventing  economic crimes.

Among the most relevant aspects for the application of this regulation, there are several elements that are key to the effective functioning of the supervision system for legal entities.

Below we mention the following:

1. Definition of supervision of legal person:  According to the regulation, supervision of the legal person consists of “ subject to a supervisor, appointed by the court, responsible for ensuring that the legal person effectively develops, implements or improves a crime prevention system within a minimum period of  six months and a maximum of two years . ”
2. General requirements for the application of the legal entity:  The court will appoint a supervisor in those cases where it is determined that the legal entity does not have a  crime prevention system , or said system is insufficient to prevent crimes.
3. Obligations:  The legal entity shall be obliged to make available to the supervisor all the information necessary for the performance of the assignment, including allowing access to its facilities and premises.

In addition, he/she shall be obliged to comply with the instructions given by the supervisor in the  development, implementation, improvement or control  of the operation of the crime prevention system.

Regarding the  role of the supervisor , several key aspects stand out that are fundamental to  understanding his role and responsibility  within the supervision system of legal entities, among which the following stand out:

1. Qualifying requirements to hold the position:  The supervisor must be a natural person who meets certain requirements such as:

• Have a relevant professional qualification (professional degree of at least ten semesters in duration).
• At least five years of verifiable experience.
• Knowledge of risk management and crime prevention, and experience in the applicable legal framework.
• In addition, the director must ensure that there are no conflicts of interest or prohibitions or disqualifications that affect the exercise of his or her duties.

1. Powers and duties of the supervisor:

• It may issue instructions and set conditions on the legal entity’s crime prevention system, as determined by the court.
• You have the right to access information, facilities and interview personnel necessary to perform your duties.
• Its actions are limited to the prevention of crimes, and it must maintain confidentiality regarding the information obtained, except in public reports.
• In addition, he is considered a public employee for the purposes of his responsibilities.

1. Supervisor’s remuneration:  The supervisor’s remuneration will be determined by the court according to market criteria and will be the responsibility of the company.

This remuneration will cover all expenses and fees related to supervision, including those of his team.

Candidates will propose their compensation at the appointment hearing, taking into account factors such as the size and complexity of the legal entity, as well as the compensation of similar supervisors and other relevant positions.

For more information on the application of this regulation, we recommend consulting our  Compliance group :

Rodrigo Albagli  | Partner |  ralbagli@az.cl

Yoab Bitran  | Compliance group director |  ybitran@az.cl

Caterina Ravera  | Senior Associate |  cravera@az.cl

Sebastian Achondo  | Associate |  sachondo@az.cl

Loreto Osorio  | Associate |  losorio@az.cl