CHILE Trends and Developments Contributed by: Luis Felipe Hübner, Diego Marín Ithurbisquy, Felipe Hübner Vadivieso and Valentina Fuentes, UH&C Abogados
tection laws to prevent transactional delays or deal failures. Although enforcement begins in December 2026, companies that fail to proactively integrate com - pliance measures into their M&A strategies may face valuation reductions or regulatory scrutiny post-implementation. Companies with poor data compliance records are becoming less attrac - tive to buyers, particularly in sectors like fintech, retail and e-commerce, where large volumes of consumer data are handled. As a result, data privacy compliance has become increasingly central to due diligence in Chilean transactions, influencing valuation and risk assessments and shaping deal negotiations well before the law’s official enforcement date. New Economic Crimes Law (Ley de Delitos Económicos N0 21.595) The Ley de Delitos Económicos , enacted in August 2023, has significantly altered the legal and compliance landscape for M&A transactions in Chile. The law expanded the classification of economic crimes, increasing from approximately 20 to more than 200 offences, including finan - cial, intellectual property, competition, tax and environmental crimes, among others. As a result, companies must now incorporate more rigorous due diligence into their M&A processes to iden - tify potential risks of corporate liability. A key challenge introduced by this regulation is the increased responsibility of legal entities, as the law establishes a framework for direct corpo - rate criminal liability. This means that business - es, in addition to individuals, can now be held accountable for economic crimes committed for their benefit. Consequently, M&A transac - tions now require more exhaustive compliance audits, leading to longer transaction timelines and higher due diligence costs.
Moreover, failing to identify legal risks during a transaction can result in significant reputational damage, regulatory penalties and, in extreme cases, legal consequences for the acquiring company. In this context, post-closing compli - ance monitoring has become essential, as buy - ers must implement ongoing governance con - trols to mitigate liability risks that could arise after completion. These heightened regulatory requirements have already influenced valuations and deal struc - tures. Investors are demanding stronger warran - ties and indemnities to protect against hidden risks, while sellers are increasingly expected to provide compliance certifications to avoid price reductions. The law has placed particular scru - tiny on high-risk industries, such as financial services, real estate and extractive industries, where past regulatory breaches, environmental infractions or financial misconduct could pose substantial post-transaction liabilities. Looking forward, companies engaging in M&A will need to strengthen their compliance frame - works, implement rigorous risk assessment protocols, and align their corporate governance policies with the new regulatory environment to maintain deal attractiveness and minimise expo - sure to economic crime-related risks. Framework Law on Cybersecurity and National Cybersecurity Agency Chile’s Cybersecurity Framework Law (Law No 21.663), published in March 2024, aims to ensure the protection and continuity of essential services in the event of cyberattacks. It estab - lished the Agencia Nacional de Ciberseguridad (ANCI) as the regulatory body responsible for enforcing the law and overseeing compliance.
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