The rise of cartel-related crime in Chile: A compliance and investment challenge

After decades of political stability and relatively low levels of violent crime, Chile has in recent years observed, with growing concern, the penetration of international cartels and the expansion of organized crime.

According to Chile's National Indicators of Organized Crime (2025), more than 136,000 crimes linked to organized crime were reported to the Public Prosecutor's Office during 2022 and 2023, representing a rate of 775 incidents per 100,000 inhabitants.[1]

Perhaps most alarmingly, Chile has seen a notable rise in kidnappings, with 868 recorded in 2024 alone. This was the highest figure in a decade. Furthermore, 2024 was the third consecutive year during which more than 800 kidnapping cases were recorded. Nearly 40 percent of these kidnappings were linked to organized crime networks, a ten-point increase compared to 2023. Prosecutors report that in Santiago, kidnappings now account for nearly as many cases as homicides, and in some months even surpass them.

This evolution reflects the growing footprint of transnational organizations. Studies confirm that Chile now hosts more than a dozen foreign criminal groups, including Venezuela’s Tren de Aragua and associated factions, Colombia’s Los Shottas and Los Espartanos, Peru’s Los Pulpos and Los del Callao, Mexico’s Jalisco Nueva Generación, and others from the Dominican Republic and even China. Parallel to this, Chile’s homicide rate – long among the lowest in Latin America – has increased by 43 percent over the last decade, from 4.2 to 6 per 100,000 inhabitants.

While drug trafficking remains the predominant illicit market, organized crime has diversified its portfolio. Criminal groups are increasingly involved in extortion, arms trafficking, migrant smuggling, and human trafficking. These trends not only threaten public safety but also undermine Chile’s reputation as a safe and predictable jurisdiction, an essential condition for attracting foreign investment.

International experience demonstrates the direct relationship between organized crime and reduced investment flows. In a global context where investors prioritize stability and institutional reliability, the growth of cartel-related crime in Chile risks weakening the country’s competitiveness and long-standing image as one of Latin America’s most secure markets.

Compliance as a strategic response

Faced with this scenario, Chilean companies are encouraged to implement robust compliance programs and effective crime prevention models.

Global markets, particularly in the United States and Europe, are demanding increasingly stringent due diligence from their business partners. This includes thorough vetting of supply chains, counterparties, and business operations in jurisdictions perceived as higher risk. For Chilean businesses, meeting these expectations is key to maintaining access to international capital and commercial opportunities.

Strengthening compliance frameworks should not be viewed merely as a legal requirement under Chile’s Economic Crimes Law or other local regulations. It may also be a competitive advantage. Companies able to demonstrate rigorous internal controls, transparency, and proactive risk management are likely better positioned to withstand scrutiny from foreign investors, regulators, and financial institutions.

Moreover, compliance programs tailored to address organized crime risks go beyond traditional anti-bribery and corruption controls. They can integrate mechanisms for monitoring unusual supply chain activity, red flags in procurement or logistics, and vulnerabilities to extortion or money laundering schemes. Such systems not only protect companies from liability, but also contribute to the broader resilience of the Chilean market.

Looking ahead

Chile faces a critical challenge: preventing organized crime from eroding its reputation as a safe destination for investment. Public institutions are ramping up their responses, including implementing specialized prosecutorial units and a national strategy against organized crime. However, that the private sector also has a decisive role to play.

By embedding compliance as a cornerstone of corporate strategy, companies can:

• Safeguard their operations against infiltration by criminal actors
• Strengthen trust with foreign partners and financial institutions
• Contribute to the collective effort of preserving Chile’s institutional stability and competitiveness

The data is clear: organized crime in Chile is no longer a peripheral threat, it is a structural challenge. It is also an opportunity for the corporate sector to demonstrate leadership.

Robust compliance frameworks can serve not only as shields for individual companies, but also as building blocks of economic resilience in an increasingly complex regional landscape.

A proactive stance will be key on the path forward. Companies that invest today in compliance and prevention will likely be the ones best positioned to thrive tomorrow in global markets, while also playing a critical role in ensuring that Chile remains an attractive and trustworthy destination for investment.

For more information, please contact the author. 

^{[1] https://www.fiscaliadechile.cl/actualidad/noticias/nacionales/fiscalia-nacional-presenta-boletin-estadistico-del-primer-semestre, https://www.uss.cl/noticias/indicador-nacional-de-crimen-organizado/, https://prevenciondehomicidios.cl/wp-content/uploads/2025/04/Informe_de_victimas_de_homicidio_2024.pdf}