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Banking

Chile

Overview
Including: Market Overview; Commercial Banks; Commercial Bank Financial Requirements; Ownership Restrictions; Foreign Banks; Dissolution and Liquidation of Banks; The Future.

The board of the Central Bank of Chile has increased the permissible investments for domestic banks offshore, in order to include securities issued or secured by international entities to which the republic is a party, and structured notes issued by investment banks.

New regulations for 2001 introduce supervisors to evaluate the management of banks. The criteria cover administrative procedures, objectives and strategy plans.

Including: Regulation and Supervision; Licensing and Incorporation; Representative Offices; Banking Activities

Capital Markets

Chile

Overview
Including: Capital Markets; Derivatives

The Superintendency of Securities and Insurance is expected to promulgate regulations concerning the simplification of disclosure requirements for the public offering of securities. The superintendency will allow certain securities to be traded among wealthy and financially sophisticated investors in sectors other than securities.

Proposed amendments to the Securities Law allow listed corporations to register securities abroad, thus permitting the trading of securities internationally.

Corporate Tax

Chile

The Anti-Tax Avoidance Bill has been amended. The main issues of interest to foreign companies with subsidiaries or investments in Chile concern proposals that deal with income tax and general tax compliance and procedures.

Recent amendments to tax law include changes to the Free Zone Law and Stamp Tax. Responses of the Inland Revenue Service to questions posed by taxpayers are also discussed.

Including: First Category Tax; Repatriation of Profits; Payments Abroad; Capital Gains

The Chilean government is negotiating tax treaties with a number of countries, and on January 1 agreements with Canada and Mexico became effective.

E-commerce

Chile

Overview
Including: Electronic Evidence; Contract Issues; Use of Electronic Signatures and Documents; New Legislation

Bills that recognize electronic documents and contracts as being valid before courts of law are expected to be enacted soon. This is a significant development because according to current legislation judges can only consider as sufficient those types of evidence listed in the Civil Procedural Code, to the exclusion of electronic documents.

A ruling by the Court of Appeal of Concepcion provides a precedent for internet crimes, holding internet providers liable for any offensive and unlawful material that appears on web sites.

A law to protect privacy in the processing of personal data includes so many contradictory and confusing provisions, that is effect may well be minimal.

Environment

Chile

Overview
Including: Constitutional Provisions; The Environmental Basic Law; Environmental Regulation; National Environmental Commission; Other Government Agencies; Environmental Impact Assessment System; Community Participation; Actions for Damages; Protected Areas; International Environmental Agreements

Regarding the environmental liabilities that might be involved in the transfer of assets, three areas must be addressed: civil tort action, environmental restoration action and administrative responsibility.

The fundamental law protecting the Chilean environment has recently been bolstered by improvements to the regulatory, administrative, judicial systems.

Intellectual Property

Chile

Overview
Including: Regulatory Framework; Trademarks; Patents; Copyright; Domain Names

An arbitrator appointed by Network Information Centre Chile for the resolution of domain names disputes decided the Inmobiliaria Las Brisas de Chicureo SA v Labsa SA case. This concerned ownership of the domain name lasbrisas.cl and use of the trademark LAS BRISAS for various activities.

Chile has amended its Domain Name Registration Regulations to adopt international standards for determining abusive use and bad faith registration. But it is unclear whether the amended regulations are retroactive.