CHILE LAW AND PRACTICE Contributed by: Fernando Lathrop Aubert, Francisco Cárcamo Valdés, Jimena Illanes Diez, Joyce Jankelevich Mayer, Macarena Jaramillo Solís, Michelle Niedbalski Ramírez, Nicolás Maldonado Leyton and María Fernanda Heusser Errázuriz, Lathrop Mujica Herrera & Diez Abogado
procedural obligations related to foreign exchange transactions under its Compendium of Foreign Exchange Regulations (Chapter XIV). (A new version came into effect on 1 January 2026.) Investors must report capital inflows and outflows – including capital contributions, loans and profit repa - triations – when these exceed statutory thresholds. Commitments typically relate to using the formal for - eign exchange market, providing accurate and timely information, and maintaining documentation for veri - fication or statistical purposes. Financial Market Commission (CMF) The CMF may impose sector-specific obligations only when the investment involves regulated financial enti - ties (such as banks, insurers, pension fund managers or securities brokers). These commitments are regula - tory in nature and may include: • disclosure and transparency requirements regard - ing ownership and control; • maintenance of capital adequacy and solvency ratios; • corporate governance and compliance duties; and • fit-and-proper criteria for controllers or key execu - tives. However, these are not “remedies” per se, but rather conditions of authorisation or ongoing supervision applicable to all market participants. Sector-Specific or Environmental Authorities In sectors such as energy, mining or infrastructure, the relevant administrative agencies may require project- specific commitments as part of environmental and/or operational permits. These can include environmental mitigation or compensation measures, but they derive from environmental or sectoral legislation, and not from the foreign investment regime itself. Summary In summary, Law No 20,848 does not contemplate the imposition of behavioural or structural remedies on foreign investors. Any commitments required by authorities are procedural, reporting or sector-specific regulatory obligations arising from the application of
general laws (foreign exchange, financial regulation or environmental law among others), rather than negoti - ated conditions on the investment itself. 7.4 National Security Review Enforcement Chile does not have a separate mechanism to block or challenge FDI differently from domestic investments, as the principles of equality before the law and non- discrimination apply. However, foreign and domestic investors are both subject to legal and administrative compliance requirements related to the nature of the investment or the source of funds. If legal or administrative violations occur, the relevant administrative authority will intervene based on the applicable laws. Ultimate decisions on challenges can be escalated to the courts, depending on the specific matter. Foreign investors have the same rights as local investors to appeal decisions through administrative or judicial channels. Investments made without proper legal or adminis - trative compliance may face penalties or nullification of associated rights, but these consequences do not target foreign investors specifically and apply equally to all parties. In addition to the benefits outlined in the Foreign Investment Promotion Law referred to in 1.2 Regu- latory Framework for FDI , Chile has signed a large number of international agreements, treaties and con - ventions, such as double taxation agreements and free trade agreements, to provide foreign investors with security and benefits. In general, however, prior authorisation for FDI in Chile is not necessary, except for some vital industries such as hydrocarbon exploration and exploitation and nuclear energy production, among others. Specific limitations regarding sector-specific regulations are as follows. • Article 7 of Law Decree No 1,939 of 1977 estab - lished the prohibition against acquiring the owner - 8. Other Review/Approvals 8.1 Other Regimes
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