CHILE Law and Practice Contributed by: Alvaro Moraga Fritz and Sebastián Moraga Nazar, Moraga & Cía.
payment by non-banking entities, regulating their use and oversight to ensure security and reliability. • Law No 20.009 on liability limitation in cases of fraud ( establece un régimen de limitación de responsabilidad para titulares o usuarios de tarjetas de pago y transacciones electróni- cas en caso de extravío, hurto, robo o fraude ). This establishes a protection regime for hold - ers or users of payment cards and electronic transaction systems in cases of loss, theft, robbery or fraud. • Law No 19.913 – creates the Financial Analy - sis Unit ( crea la Unidad de Análisis Financiero y modifica diversas disposiciones en materia de lavado y blanqueo de activos ). This estab - lishes the Financial Analysis Unit (UAF) to pre - vent and combat money laundering, introduc - ing rules and sanctions for such crimes. • Law No 21.595 – the Economic Crimes Law ( Ley de Delitos Económicos ). This updates the regulation of economic crimes, including the classification of new offences and estab - lishing stricter penalties for corruption and corporate fraud. The number of secondary regulations derived from the above-mentioned laws is extensive, and one or more authorities may participate in their issuance. However, the principal banking regulations are as follows. The Recopilación Actualizada de Normas (RAN) is a regulatory compendium maintained by the Chilean Financial Market Commission (CMF). It consolidates, organises and updates the regula - tions applicable to the banking system, ensuring compliance with standards in areas such as: • risk management; • solvency; • liquidity;
• financial reporting; • corporate governance; and • consumer protection.
The RAN is organised thematically and updated regularly to reflect regulatory changes, in align - ment with banking legislation (including the Gen - eral Banking Law). The Compendium of Financial Regulations, issued by the Central Bank of Chile, is a further regulatory compilation and is organised into four main areas: • financing systems; • rules for financial system and capital market operations, intermediation and oversight; • Central Bank operations with financial instru - ments; and • banking operations in foreign currency. The Compendium of Monetary and Financial Regulations is also issued by the Central Bank of Chile; it governs the supply of money and credit in circulation. 2. Authorisation 2.1 Licences and Application Process In accordance with Article 27 and subsequent provisions of the General Banking Law (LGB), banks must be established as special purpose stock corporation ( sociedades anónimas espe- ciales ), as they are required to meet certain crite - ria set forth by the LGB and to obtain authorisa - tion from the CMF for their legal existence. At this stage, the founding shareholders must submit a prospectus to the CMF, accompanied by the bank’s business development plan and documentation demonstrating compliance with
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