Reflecting on the
Economic Crimes Bill
Published: October 15, 2021
This Thursday, October 14, we had the opportunity to learn in greater detail about the Economic Crimes bill being processed in Congress, through a webinar organized by AmCham Chile and BH Compliance.
As is well known, this bill has generated several controversies and, therefore, it is necessary to explain its scope. On this occasion, the lawyer and professor of Criminal Law at the Catholic University, Juan Ignacio Piña, explained to the attendees what this regulation consists of and what its implications are.
In this sense, although it is an initiative that aims to systematize economic and environmental crimes, as well as to modify various legal bodies that typify crimes against the socioeconomic order, and to adapt the penalties applicable to all of them, there are certain points that may be contrary to the spirit of the law, such as the fact of eliminating the reference to the duties of management and supervision, which would weaken the Compliance programs.
After her speech, the director of companies, Manola Sanchez, and the Executive Director of BH Compliance, Susana Sierra, participated in a discussion regarding the law’s implementation in companies.
Manola Sanchez, emphasized the need for a gradual application of the law, since being so broad, it can be a problem in practice. In this way, she invited to carry out a white march, thinking about the reality of the companies in our country. “Let’s not forget that a good intention can turn into something unwanted”.
For her part, Susana Sierra, emphasized that this law directly affects the Law on Criminal Liability of Legal Entities, and that there is a lack of real understanding on the part of the congressmen regarding the preventive spirit of the law. “We are modifying a law and incorporating crimes, thinking that this law operates in its fullness and it is not so”, he said. And he stressed that these compliance programs still need to be extended to more companies, as well as the importance that those who have one, put it into practice and not remain on paper. “The problem is that we are a very legalistic country and perhaps with this law we will have many companies making models for crime prevention, where some of these crimes do not even apply to them and we will have everything very tidy on paper, but then how this is implemented,” he emphasized.
BH Compliance exhibits at the Boca Raton Chamber of Commerce
Published: October 5, 2021
This Tuesday, October 5, BH Compliance was present at the virtual round table of the International Business Alliance of the Boca Raton Chamber of Commerce in Florida, through its CEO, Susana Sierra, and the Legal and Compliance Manager, Ramón Montero.
On the occasion, the executives discussed the importance of compliance in organizations and its impact on international business.
To begin with, they analyzed how the new global scenario – pandemic, economic crisis, a crisis of confidence, populism, among other factors – has increased the risks of corruption, which implies that both public and private institutions must take measures to prevent crimes.
In this context, Latin American countries have seen their anti-corruption capacity diminished, which is accentuated by the lack of global perspective of companies, which are guided by local laws on corporate criminal liability, risking offenses that can be punished by laws such as the Foreign Corrupt Practices Act (FCPA), which can be even harsher than the local ones.
Susana Sierra highlighted the main elements that a compliance program must consider in order to be effective, highlighting, for example, the commitment of top management, employee training, due diligence, and periodic reviews.
Ramón Montero presented cases of companies that were involved in corruption scandals, in which crime prevention models made the difference when it came to receiving sanctions. He also stressed the importance of checking the updated guidance of the U.S. Department of Justice (DOJ).
BH Compliance recently opened an office in Miami, so it is focused on raising awareness of the reality of Latin America in terms of corruption and how to have effective prevention models, which are not only expectations but reality.
FCPA Update, an alert for companies in Latin America
Published: June 24, 2021
The United States has made anti-corruption a priority, strengthening laws to expand the investigative capacity of its authorities worldwide. This should be a wake-up call for companies, especially in Latin America, where corruption levels have risen with the pandemic.
To address this issue, BH Compliance and the law firm Greenberg Traurig held this Thursday, June 24, the webinar “Update on FCPA and corruption cases, for companies doing business in LatAm“.
Daniel Pulecio-Boek, Shareholder of Greenberg Traurig, referred to the modification -in December 2020- of US corruption control laws, which expand the investigative capacity, allowing US authorities to access all banking information of any natural or legal person in the world investigated as a person of interest, witness or target. In this regard, he highlighted the role of compliance programs, since having an effective and correctly implemented one can make the difference in the type of investigation and the defense of the company.
It should be noted that the anti-corruption fight in the United States has an important focus in Latin America. In this regard, Hugo Lopez Coll, Shareholder of Greenberg Traurig, explained the memorandum recently sent by President Biden, in which he defines corruption as a national security interest, giving a period of 200 days to the offices and agencies of State to send recommendations and strengthen prevention, which includes a strengthening of laws such as the Corrupt Practices Act (FCPA). This will allow for better coordination both locally and globally, emphasizing that extraterritorial enforcement will be a growing trend.
Susana Sierra, CEO of BH Compliance, made a brief analysis of the global context, where there is an economic crisis, social inequality, internal conflicts, proliferation of authoritarian and/or populist governments, crisis of confidence, increase in drug trafficking and organized crime, in addition to the advance of disinformation and fake news, which leaves fertile ground for corruption. For the same reason, he pointed out that more than ever compliance programs should be seen as a contribution in the fight against corruption and not just compliance with the law, which should be more urgent with the strengthening of laws in the United States. In this regard, he cited examples of companies sanctioned for not having adequate anti-corruption controls globally.
Finally, Ramón Montero, Legal and Compliance Manager of BH Compliance, presented the main failures in 15 cases of companies sanctioned under the FCPA, including payments to suppliers without contracts, erroneous accounts, lack of training, training and monitoring of contracts in human resources, failures in financial controls, in subsidiary companies, among others.
In addition, Montero, delivered the measures to correct for a correct prevention, among which are the commitment of directors; review and update policies; design internal policies for employees and external collaborators on issues such as gifts, travel, donations and sponsorships, etc.; conduct periodic training for the most exposed workers and certify them; establish a channel for complaints; issue a code of compliance to prevent and detect non-compliance with the FCPA; conduct periodic controls and tests to measure the effectiveness of the compliance program.
The webinar concluded with answers to questions from the virtual attendees by the presenters.
June 24, 2021
From Compliance to Strategy
Published: April 29, 2021
As part of the series of webinars that BH Compliance is carrying out to discuss the role of the company in society and how to be an agent of change, this Thursday, April 29, BH Compliance, together with AmCham Chile, held the online seminar “From Compliance to Strategy: how to create a culture of integrity”.
The event focused on how to build an ethical culture within organizations, especially in this period of pandemic, which has meant the revision of priorities and purpose in many companies.
The initial opening was in charge of Hugo Hurtado, Partner at Deloitte and Chair of the Corporate Governance and Compliance Committee of AmCham, who referred to the importance of compliance in current times, which should no longer be seen as compliance with legal regulations, but as a long-term strategy, in which the ESG pillars are addressed.
The panel was composed of company directors, Susana Carey, Myriam Gómez, and Luis Hernán Paúl, and was moderated by the Executive Director of BH Compliance, Susana Sierra. The latter emphasized the need for organizations to be based on values to prevent misbehavior, for which it is essential to build a culture of integrity, created from the top and permeating the rest of the organization. To this end, he pointed out that the boards of directors should discuss value-based issues, in addition to the technical issues of their competence, in order to reduce risks.
For his part, Luis Hernán Paúl referred to his experience as a director of companies in the midst of the pandemic, where he has had to deal with two opposing realities, with companies favored and others harmed by the crisis. In view of this, he emphasized the responsibility of boards of directors in preventing compliance from losing relevance due to the urgency of addressing other issues, and that uncertainty should lead to more strategic efforts to identify emerging trends, both at a general and sectoral level.
Susana Carey highlighted that it is often necessary to go against short-term benefits and act with conviction, perseverance and consistency to achieve long-term gains through a culture of integrity. Along these lines, he pointed out the importance of addressing cognitive and emotional biases within organizations, in order to prevent and anticipate potential risks, as this will demonstrate a corporate commitment to transparency.
Finally, Myriam Gómez argued that the quality of compliance and the strength of a culture of integrity are key to achieving the desired ethical results. And he pointed out that Chile is in a unique moment – given the pandemic and political situation – to internalize compliance, not as a checklist or a “nuisance”, but as the basis of corporate sustainability.
The closing of this virtual conversation was in charge of Paula Estévez, General Manager of AmCham Chile, highlighting the work of the organization in promoting good practices, as well as its ongoing commitment to the development and implementation of internal compliance policies and procedures in pursuit of a culture of integrity.
April 29, 2021
How does the new law on economic crime affects compliance?
Published: March 24, 2021
On Wednesday, March 24, BH Compliance and BACS Abogados, held the first webinar of this 2021, to address the economic crimes bill being discussed in Congress and that brings important changes for the areas of Compliance in companies.
The webinar called “New standards of criminal liability of legal persons: a look from the Compliance“, had the presentations of the members of BACS Abogados José Pedro Silva and Miguel Schürmann, and the executive director of BH Compliance Susana Sierra, in addition to the special participation of the director of companies, Manola Sanchez.
On the occasion, the new parameters required by law 20.393 in relation to the progress of the economic crimes bill were analyzed. In this context, José Pedro Silva focused on the changes that the new regulation brings with respect to the current legal framework, highlighting the expansion of the catalog of crimes, as well as the expansion of the scope of application of the law, the circle of persons linked to its responsibility and the elimination of formalisms in compliance programs.
For his part, Miguel Schürmann analyzed the new compliance standards, emphasizing the importance of applying demanding rules in this area, beyond what the law says, since changes are constant and foreseeable. In addition, in relation to the elimination of formal methods to comply with the law in the implementation of crime prevention programs, the lawyer pointed out that the new regulations consider the risk matrix according to the line of business of the company. He also highlighted the widening of the circle of parties involved in criminal liability, considering intermediaries.
The Executive Director of BH Compliance, Susana Sierra, referred to the importance of implementing a true ethical culture of compliance, which goes beyond good intentions and is concerned with training its workers beyond the law, focusing on ethical cases, recognizing biases, promoting organizational leadership, increasing diversity and inclusion and measuring stakeholders, among other tasks, in order to promote real change.
Finally, Manola Sanchez spoke from her experience as a company director, emphasizing the importance of achieving values that remain in companies, the existence of a leader to prevent risks and, together with the directors, set an example for the rest of the organization. She also stressed the need to promote concrete actions, implementing good practices and understanding the importance of external experts looking at the processes implemented in the companies.
March 24, 2021
Consumer Protection Compliance Plans
Published: December 10, 2020
Susana Sierra, Executive Director of BH Compliance, spoke with attorney Jaime Lorenzini, Partner of Lorenzini-Twyman, and Carlos Andonaegui Elton, Retail Legal Manager of Banco BCI, who shared the company’s experience in implementing these models.
Jaime explained what a consumer protection compliance plan consists of, considering the particularity of its risk matrix, protocol, manual and trainings. “Behind any plan is the central notion of ‘risk of non-compliance’ with the norm, in this case the consumer protection law. It is not enough to put nice ideas on paper to approach compliance. You have to be astutely attentive to develop it correctly,” he said.
Carlos, on the other hand, based on the progress made in this area at BCI, pointed out that the compliance plan has to be based on the company’s DNA, which is represented, for example, in its purpose and values. She also said that flexibility and permanent internal adaptation are challenges inherent to this management.
Meanwhile, Susana made an analysis between compliance in consumer rights protection and the law of criminal liability of legal persons, determining several similarities in the compliance plans that an organization can develop and implement. He indicated that depending on the nature of the company, both issues can be integrated.
The 3 speakers agreed on the relevance of a compliance-oriented organizational culture in the prevention of crimes and the protection of consumer rights, coupled with the commitment of senior management.
December 10, 2020
The importance of Tax Compliance in companies
Published: November 3, 2020
On Tuesday, November 3, we talked about Tax Compliance or tax compliance programs, in a webinar that included important experts from Chile and Spain.
Tax Compliance programs have gained space within companies globally, seeking to prevent and ensure compliance with legal-tax obligations, as well as to control potential financial risks. In this way, companies will be able to establish the guidelines that will guide good tax practices within the organizations.
The panel of conversation was composed of:
Adán Nieto, prominent Spanish criminal lawyer and professor of criminal law at the University of Castilla de la Mancha, who referred to the importance of tax compliance in the business sector.
Gonzalo Medina, partner of Harasic, Medina & Dal Pozzo and professor of criminal law at the University of Chile, who made a descent into the Chilean scenario, in addition to speaking about the design of the national tax criminal prosecution.
Francisco Saffie, partner of Bruzzone y González Abogados, and professor of law at the Universidad Adolfo Ibáñez, who explained the future course of Chilean tax compliance, in particular its scope and applicability.
Pedro José Carrasco, professor of financial and tax law at the Universidad Castilla de la Mancha, who spoke about the cooperative compliance of tax obligations based on the Spanish case.
At the end of the presentations of the experts, time was dedicated to answer questions from the audience.
November 3, 2020
Conflict of Interest and Incompatible Negotiation
Published: October 15, 2020
In this webinar, we talk about Conflicts of Interest and Incompatible Negotiation with the objective of discussing and resolving doubts in relation to this topic, as well as good practices to implement.
Francisco Bilbao – Deputy Legal and Compliance Manager of BH Compliance.
Ramón Montero – Head of Legal & Compliance of BH Compliance.
Susana Sierra – Executive Director BH Compliance.
October 15, 2020
Sustainability and Compliance: The challenge of a new reality
Published: August 14, 2020
Marta Herrera Seguel, Director of the Specialized Anti-Corruption and Legal Unit of the National Public Prosecutor’s Office.
Axel Christensen, Director of Investment Strategy for Latin America at BlackRock.
Susana Sierra, Executive Director of BH Compliance.
Ramon Montero, Head of Legal & Compliance at BH Compliance.
August 14, 2020
Part 1: Protection of personal data
Published: July 8, 2020
Data life cycle and data processing.
Personal Data Protection Bill.
Paulina Silva, Director of Carey’s Intellectual Property and Information Technology Group.
Felipe Harboe, Senator of the Republic and promoter of the Data Protection Bill.
Susana Sierra – Executive Director BH Compliance.
July 8, 2020
Part 2: The company in the age of data: How to build a privacy culture
In the previous webinar we talked about the importance of data protection and data processing. In this second part, we were talking about the operational response of companies and their great challenge to rethink their internal processes of data collection in order to comply with the protection of the privacy of individuals.
In addition, we talked about the figure of the data protection officer and how the changes should be taking place within companies. Taking special care that the time to prepare is today.
Paulina Silva , Director of Carey’s Intellectual Property and Information Technology Group.
Felipe Harboe, Senator of the Republic and promoter of the Data Protection bill.
Susana Sierra – Executive Director BH Compliance.
August 6, 2020
The expansion of the law on criminal liability of legal persons in the Economic Crimes project and its implications for Compliance
Published: June 16, 2020
Organized by: BH Compliance and BACS Bascuñán Barra Awad Contreras Schürmann Abogados.
Susana Sierra – Executive Director BH Compliance.
Sebastián Segovia, Governance, Ethics and Compliance Manager of Falabella S.A.
Alejandro Ferreiro Yazigi, lawyer and former Superintendent of Pensions, Securities and Insurance.
Miguel Schürmann Opazo, lawyer of BACS Bascuñán Barra Awad Contreras Schürmann Abogados.
José Pedro Silva Santa Cruz, lawyer of BACS Bascuñán Barra Awad Contreras Schürmann Abogados.
June 16, 2020