Banco de Chile ( en, Bank of Chile), is a Chilean bank and financial services company with headquarters in Santiago. It is a commercial bank that provides a range of financial services to a client base. As of December 31, 2012, Banco de Chile has a national network of 434 branches, 1,915 ATMs and other electronic channels of distribution. Since 2008, it has been jointly controlled by the Chilean conglomerate Quiñenco group and US bank Citigroup. Operations are organized around six main commercial divisions: large corporations, SMEs, private clients, consumer finance, international banking and capital markets. Additionally, subsidiaries offer securitization, securities brokerage, mutual investment and bottomry, insurance and factoring, among others. Outside Chile, the bank has had a branch in New York City for more than 20 years and has branches in Miami, São Paulo, Buenos Aires, Mexico City and Hong Kong providing international services.

History

Founded on 28 October 1893 by the merger of the Valparaiso Bank (1855), National Bank of Chile (1865) and

Agriculturist An agriculturist, agriculturalist, agrologist, or agronomist (abbreviated as agr.), is a professional in the science, practice, and management of agriculture and agribusiness. It is a regulated profession in Canada, India, the Philippines, the U ...

Bank (1869), Banco de Chile has traditionally led the Chilean financial market as one of the largest banks in terms of turnover and deposits. In 2001, the Chile conglomerate Quiñenco group bought 59.3% share of the company through the subsidiary company LQIF and took control of the bank. In 2008, Citigroup agreed with Quiñenco to take a 32.96% stake in LQIF and merged Citigroup Chile operations with Banco de Chile. In April 2010, Citigroup exercised its two outstanding options and increased its share in LQIF to 50%. On December 9, 2004, Banco de Chile became the first Chilean financial institution to operate in the Asian markets, after closing a co-operation agreement with Standard Chartered Bank.

Controversies

US money laundering

In 2005, the US Office of the Comptroller of the Currency (OCC) removed the General Manager of Banco de Chile - New York from the United States banking industry and imposed a $200,000 civil money penalty against the individual for engaging in unsafe banking practices, related to his involvement in accounts owned or controlled by the prominent

politically exposed person In financial regulation, a politically exposed person (PEP) is one who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and ...

and his associates. In addition, Banco de Chile New York and Banco de Chile-Miami failed to timely respond to widely publicized reports of alleged criminal activity by this high-profile Chilean politically exposed person (PEP) and failed to gather and analyze information from applicable accounts in order to assess the potential for suspicious activity. The OCC issued a Cease and desist against Banco de Chile for

Bank Secrecy Act The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laun ...

violations. The US Financial Crimes Enforcement Network also levied a $3 million penalty on Banco de Chile for not identifying, monitoring and reporting suspicious activity related to a Chilean politically exposed person, his family and associates doing business in its New York and Miami branches. The high-profile Chilean PEP was confirmed to be

Augusto Pinochet Augusto José Ramón Pinochet Ugarte (, , , ; 25 November 1915 – 10 December 2006) was a Chilean general who ruled Chile from 1973 to 1990, first as the leader of the Military Junta of Chile from 1973 to 1981, being declared President of ...

, the retired former dictator of the country who came to power in a military coup.

Pinochet funds

In 2009, Banco de Chile was one of four banks sued by the Chilean government for negligently or deliberately helping former dictator Augusto Pinochet hide $26 million in stolen funds. The other banks were PNC Financial Services Group Inc., Banco Santander, Espirito Santo Bank. "The Chilean government may have chosen to go after the four banks specifically because the documented evidence of negligence or willful blindness was stronger," said Michael Diaz, managing partner with law firm Diaz Reus & Targ LLP in Miami, adding that the other institutions may be “on the periphery of liability.”

Divisions

The divisions of the Bank of Chile Group are: *BanChile Corredores de Bolsa *Banco CrediChile *Banco Edwards - Citi *BanChile Seguros

References

External links

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FactoringBanco Edwards , citiBanco CrediChile
{{Authority control Companies listed on the Santiago Stock Exchange Companies listed on the New York Stock Exchange Multinational companies headquartered in Chile Banks of Chile 1893 establishments in Chile Banks established in 1893 Chilean brands