Chilean regulator fines Banco Santander and Banco de Chile

Chile’s Financial Market Commission (CMF) has sanctioned Banco Santander and Banco de Chile for violating Law 14.908, which concerns family abandonment and the payment of alimony. The banks failed to comply with obligations regarding the National Registry of Alimony Debtors when issuing loans.

Under the law, financial institutions must consult the registry when granting credits of 50 UF or more. If a borrower is listed as a debtor, the bank is required to withhold up to 50% of the credit to cover unpaid alimony. The CMF found that both banks issued loans to registered debtors without performing these mandatory withholdings.

Banco Santander was fined 2,656.46 UF (approximately $108–$109 million CLP) following 27 identified consumer credit operations between May and October 2024. Banco de Chile received a fine of 238.14 UF (approximately $9.7–$10 million CLP) for six non-compliant operations during the same period.