By: Manola Quiroz and Jorge Timmermann The Commission of the Financial Market (CMF) is now the sole regulatory body with authority over Chile’s financial system. The change arises from Law No. 21,130, published in the Official Gazette of Chile on January 31, 2019, which introduced several amendments to the General Banking Law and the Organic Constitutional Law of the Financial Market Commission, increasing the capital requirements for the banking industry, strengthening regulatory and preventive mechanisms,…

Law 21.131, also known as “30-Day Payment Law” (the “Law”), became effective on May 16th, 2019. Maximum Payment Term The Law establishes a maximum payment term of 60 calendar days since the date the invoice was received by the debtor; term that will be reduced to 30 calendar days on February 16th, 2021.  Consequently:   Since May 16th, 2019 Since February 16th, 2021 Maximum payment term is 60 calendar days since the date the invoice is received by the debtor. Maximum payment term is 30 calendar days since…

In effect since May 07, 2019, Peru’s Supreme Decree No. 145-2019-EF established certain parameters in an effort to identify and sanction tax avoidance mechanisms. The Peruvian general anti-avoidance rule (GAAR) was enacted in 2012; however, through Legislative Decree No. 1121, it was suspended until the issuance of regulations to allow its application.…

By: Janine Guzman and Mariana Muñiz-Lara The Supreme Court of Puerto Rico recently determined that an employee accused of committing several felonies can be suspended indefinitely pending criminal trial without it being considered an unjust dismissal. It also held that an employee can be dismissed with just cause if found guilty of the felonies. Under Puerto Rico Act No. 80 of May 30, 1976, known as the Unjust Dismissal Act, an employer must pay severance…

Brazilian President Jair Bolsonaro has approved Law 166/2019, the so-called compliant debtors law, modifying the country’s credit scoring system. The new rules will come into force on July 9, 2019. The credit scoring system has been in place since 2011, but until now consumer adherence was voluntary. According to the new law, approved on April 8, the Brazilian credit scoring system will change from an opt-in to an opt-out format. Therefore, the inclusion of consumers…