The main change is that articles 138 and 140 of the General Law of Urbanism and Construction are elevated to the category of economic crime.
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, in view of the entry into force of the regime applicable to companies on September 1 of this year, it is pertinent to review the effects that this law could have in the real estate field.
The main change is that articles 138 and 140 of the General Law of Urbanism and Construction are elevated to the category of economic crime. 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 concurrence of such circumstances, will be charged.
Likewise, the sanctions 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 point out that the new Law on Economic Crimes establishes a series of special mitigating and aggravating circumstances, as well as a special regime of alternative penalties.
Finally, we mention that any conviction for economic crime implies the confiscation of profits, which would also apply to the commission of the crimes contemplated in articles 138 and 140 of the General Law of Urbanism and Construction.
Taking into account all of the above, it is relevant to highlight that, although the real estate and construction area 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 that accompanies its operations.
For more information on these issues, please contact our Corporate and Real Estate group:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Javiera Lira | Senior Associate | jliras@az.cl
Aileen Gorodischer | Associate | agorodischer@az.cl
Raimundo Busquet | Associate | rbusquet@az.cl
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