Crime Prevention Model

Tools to comply adequately avoiding behaviors that constitute a crime.

Highlights of

Crime Prevention Model

Risk matrix

Avoids criminal conduct, identifying in each of the areas of corporate relations, processes with respect to regulations in which there are risks.

Supporting documentation

Transparency and traceability ensured with the archiving of evidence of MPD awareness

Assignment of responsible parties

Monitoring within the system, access to documentation, accountability and progress reporting, evaluation and actions

Follow-up and periodicity

Provision for periodic evaluations by independent third parties and mechanisms for improvement or updating based on such evaluations.

Establishes, implements and manages protocols and procedures for the prevention of criminal behavior.

A cultural shift towards crime prevention within companies is essential to raise compliance standards and generate preventive measures.

Chile seeks to provide a clear example of how legal frameworks can act as catalysts for change and transformation with the new Economic Crimes Law.

According to Article 4 of Law 21,595: “It shall be understood that a Crime Prevention Model effectively implemented by the legal entity is adequate for the purposes of exempting it from criminal liability when, to the extent required by its corporate purpose, line of business, size, complexity, resources and the activities it carries out, it seriously and reasonably considers the following aspects”.

Identification of activities and processes involving risk

What is considered a crime?
When could this happen?
Who is responsible?

This is what we seek to define by taking charge of the identification of the activities or processes of the legal entity that imply a risk of criminal conduct.

With this we can focus our attention and efforts on critical or more vulnerable points and follow up to activate protocols in time.

Prevention protocols

The establishment of protocols and procedures to prevent and detect criminal behavior is essential to efficiently manage the obligation to report possible risks and non-compliance to the agency in charge of overseeing the operation and observance of the Crime Prevention Model.

These protocols must be known to all members of the institution, with their respective registry.

Safe reporting

The above point necessarily implies the definition of secure reporting channels, where anonymity is protected and the delivery of relevant information is facilitated in order to avoid the commission of crimes.
These channels must be adequately monitored and controlled.

Acknowledgment

Because omission and ignorance are not arguments to exempt legal entities from liability for economic crime, the communication of protocols to all workers must be ensured.

Supporting documents

Given the previous point, the internal regulations must be expressly incorporated in the respective employment and service contracts of all workers, employees and service providers of the legal entity, including its top executives.

The signature of these documents ensures that the legal entity is aware of and committed to the correct fulfillment of its responsibilities, which is why it is important to have a record of these documents.

Accountability and protocol management

The persons responsible for the application of protocols are accountable to the legal entity for the measures implemented in compliance, in addition to being accountable for their management and for requiring the adoption of measures that may go beyond their competencies.

Resource availability

The legal entity shall provide the person or persons in charge with the material and non-material resources and means necessary to adequately perform their tasks.

This is a commitment that corporate governance must make as part of its sustainability strategy.

Only in this way will it be able to develop its business and achieve its economic objectives, since its greatest insurance in the future is to be able to demonstrate that it has made every effort to prevent the commission of crimes.

Assignment of responsible parties

The assignment of one or more persons responsible for the application of these protocols, with adequate independence and effective powers of direction and supervision, is extremely important to strengthen the MPD, since they are the guarantors of adequate and conscientious compliance with the regulations, thus avoiding acting outside the law.

Crime Prevention Model

Highlights of