On November 20, 2018, Law No. 21121 was published, which modifies the Criminal Code and other legal regulations related to the prevention, detection and prosecution of crimes related to corruption (the “Law”).

The Law introduces mainly the following legal modifications:

(i) increases the penalties of bribery;
(ii) widens the offense of incompatible negotiation;
(iii) it typifies the crime of bribery between individuals;
(iv) typifies the crime of unfair administration; Y
(v) it adapts the regulations of criminal liability of legal persons, in relation to the aforementioned modifications.

Likewise, the Law incorporates the following crimes for which legal entities could be sanctioned.

(i) misappropriation;
(ii) incompatible negotiation;
(iii) bribery between private parties; Y
(iv) unfair administration

These crimes are added to those contemplated by Law No. 20.393 as punishable to legal persons: bribery, money laundering, financing of terrorism and reception.

As a result of these changes, companies must update their risk management and internal control systems, managing the new risks derived from misappropriation, incompatible negotiation, private bribery and unfair administration in the Crime Prevention Models approved by the different companies.

For more information we invite you to review a report HERE