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Crime Prevention Model

Corporate criminal compliance under Law 20.393: prevention models designed around the company's real operations and able to prove their effectiveness when it matters.

The Economic Crimes Law changed the rules

Since 1 September 2024, the amendments introduced by Law 21.595 to Law 20.393 on corporate criminal liability have been in force.

The result is that almost any organisation can be exposed, and a purely paper-based model no longer protects it.

  1. More offences

    Companies can be criminally liable for more than two hundred offences, including economic, environmental and computer crimes.

  2. More entities

    Private legal entities, state-owned companies created by law, state universities, political parties and religious entities under public law are all covered.

  3. Effectiveness, not paper

    The exemption requires an effectively implemented model. The court assesses whether the controls actually worked.

  4. Severe penalties

    Fines, debarment from public contracts, loss of tax benefits, court-appointed supervision and even dissolution of the entity.

What the law requires from a prevention model

The model must suit the company's business, size, complexity, resources and activities, and seriously and reasonably address at least the following.

Our service, in three stages

A model the organisation understands, adopts and can demonstrate.

  1. Assessment

    Criminal exposure review

    • Corporate structure, governance and operations
    • Mapping of critical activities and processes
    • Criminal risk matrix with inherent and residual risk
    • Review of contracts and third-party relationships
    • Gap report and priorities

  2. Implementation

    Design and adoption

    • Model manual, code of conduct and policies
    • Appointment and support of the prevention officer
    • Whistleblowing channel and investigation protocol
    • Third-party, PEP and related-party due diligence
    • Conflict-of-interest policy
    • Training for the board, management and staff

  3. Monitoring

    Operation and updates

    • Control monitoring and testing
    • Updates for regulatory or operational changes
    • Periodic risk matrix review
    • Handling of reports and investigations
    • Compliance reporting to the board

Outsourced crime prevention officer

For organisations that cannot justify a dedicated internal role, we act as the crime prevention or compliance officer, with the independence required by law and reporting directly to management.

The role draws on first-hand experience operating a prevention model: risk matrices, whistleblowing channels, conflict-of-interest procedures and third-party due diligence.

  1. Model supervision

    Control execution, annual work plan and gap follow-up.

  2. Whistleblowing channel

    Intake, admissibility, investigation and reporting, including anonymous reports.

  3. Board reporting

    Regular reports on the model's status, incidents and proposed improvements.

  4. Compliance culture

    Training, internal communications and answers to staff queries.

Independent evaluations. The law requires periodic evaluations by independent third parties. We provide this service only for models we did not design or implement.

Frequently asked questions

Is a Crime Prevention Model mandatory in Chile?

Law 20.393 does not impose a general obligation on every company to adopt one, but without an effectively implemented model the legal entity cannot be exempted from criminal liability if one of its members commits an offence within the scope of its activity. In practice, more and more clients, lenders and public tenders require it from suppliers.

Is a certified model enough?

No. Since the Law 21.595 reform, what matters is that the model was effectively implemented and suited to the organisation. A certification can be useful evidence, but it does not replace proof that the controls were actually working.

How long does implementation take?

It depends on the size, complexity and starting point of the organisation. For a mid-sized company, assessment, design and roll-out usually take three to six months; the model then requires regular monitoring and updating.

What does the crime prevention officer do?

The officer applies and supervises the model, with independence, effective powers and direct access to management. It may be an employee or an external professional, depending on the organisation's structure and resources.

Does Law 20.393 apply to foundations and non-profits?

Yes. Private non-profit legal entities can also be held criminally liable. Their model must reflect their statutory activity, funding sources and governance, which usually differ from those of a commercial company.

Would your model withstand scrutiny by a court?

Let's review your current situation in a 30-minute initial meeting. We will tell you frankly what your model lacks, and what it doesn't need.

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