We invite you to read the column written by our partner, Álvaro Rosenblut, on the impact of the Economic Crimes Law on real estate.
The enactment of the Economic Crimes Law incorporated significant changes in the Chilean criminal system, establishing the criminal liability of companies for crimes in various areas.
In addition to the above, with the entry into force of the regime applicable to companies on September 1, 2024, it is pertinent to review the effects that this law could have on real estate.
The main change is that the economic crimes contemplated in articles 138 and 140 of the General Law of Urbanism and Constructions are elevated to the category of economic crimes. Provided that they are facts perpetrated in the exercise of a position, function or position in a company, or for the economic or other benefit of a company.
Article 138 of the General Law of Urbanism and Construction punishes the owner, developer or urbanizer who carries out acts or contracts whose purpose is the transfer of ownership in contravention of the law and which are intended to form new towns.
Article 140 of the same law punishes the sale and adjudication of undeveloped land, whose purpose is the formation of a town, opening of streets, subdivision or subdivision, if the guarantees granted by the Directorate of Municipal Works have expired.
Now, what does the elevation to the category of economic crime of the facts contemplated in articles 138 and 140 of the General Law of Urbanism and Constructions imply?
The main implication is that all persons criminally liable under the general rules for infringing any of these two articles, and who at the time of their intervention had knowledge of the occurrence of such circumstances, may be charged both personally and generate liability for the company, if it does not prove that it has adequate controls and prevention mechanisms in place.
Likewise, the penalties range from fines, the amount and determination of which is established by the new law, as well as the imposition of disqualifications and prohibitions also provided for in the new regulation.
It is important to note that the new Economic Crimes Law establishes a series of special mitigating and aggravating circumstances, in addition to a special regime of alternative penalties.
Finally, we mention that any conviction for an economic crime implies the confiscation of the profits, which would also apply to the commission of the crimes contemplated in articles 138 and 140 of the General Law of Urbanism and Constructions.
In view of the above, it is important to point out that, although the real estate and construction sector is not the most affected by the new economic crime regulations, it is important for any company operating in this area to be aware of the possible risks and to maintain a prevention area to accompany its operations.
