CHILE Law and Practice Contributed by: Alvaro Moraga Fritz and Sebastián Moraga Nazar, Moraga & Cía.
Regarding key executives, the following must be reported. • Aggregate compensation, presented in a comparative format with the prior fiscal year, showing the total remuneration received by key executives. • Compensation or special benefits plans – if the entity offers such plans to key executives, the compensation must be broken down into fixed and variable components, where appli - cable. A detailed description of these plans or benefits must also be provided. If the plan involves stock-based compensation, additional details are required, including: • Whether stock options are allocated or not. • For allocated options: (a) the number of key executives receiving them; (b) the percentage of total shares granted; and (c) the percentage of shares remaining to be allocated. • For exercised options, the total number of shares granted. The Chilean legal framework for combating money laundering, terrorism financing and the proliferation of weapons of mass destruction is primarily contained in Law No 19,913, which established the Financial Analysis Unit (UAF). This agency issues regulations that banks must comply with to fulfil their objectives. Law No 19,913 mandates that certain natural and legal persons, including banks and other 5. AML/KYC 5.1 AML and CFT Requirements
entities supervised by the CMF, are obligated to report suspicious transactions detected during their activities. Under this law, banks are required to: • report suspicious transactions; • maintain special records for a minimum period of five years; and • provide information to the FAU upon request regarding any cash transaction exceeding the equivalent of USD10,000 (or its equivalent in Chilean pesos), based on the observed exchange rate on the transaction date. Additionally, banks must report all acts, trans - actions or operations specified in Article 38 of Law No 19,913 involving natural or legal persons listed in the resolutions issued by the United Nations Security Council. It is also important to consider Article 154 of the General Banking Law regarding banking secrecy and confidentiality, as well as Article 6 of Law No 19,913, which prohibits informing the affected party or third parties about information sent to the FAU or related matters. The main components of this system include: • the existence of a framework of policies and procedures; • the appointment of a compliance officer; • the creation of a prevention committee; • the implementation of tools for detecting, monitoring and reporting unusual transac - tions; • the establishment of personnel selection and training policies; • the adoption of an internal code of conduct; and
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