Chilean Bank Accounts & Checks: A Comprehensive Overview
Current Accounts and Checks in Chile
DFL No. 707 on Bank Accounts and Checks
Chapter 2-2 of the Updated Compilation of Rules SBIF
Law 18,092 on Bills of Exchange and Promissory Notes
Opening Current Accounts
Minimum Requirements:
- National ID Card or Passport, or RUT
- Recent photograph of the owner or legal representatives
- Digital fingerprint of the holder or legal representatives
- Bank references
- Drawer’s signature
- Background of activity and solvency
- Proof of address
- Subscription document – general conditions (contract)
- Legal constitution and powers (for legal entities)
Two-Person or Multi-Accounts
Each holder must meet individual account requirements. Joint mandate is required unless otherwise specified.
Holders with Multiple Checking Accounts
- No impediments to holding multiple accounts
- Accounts operate independently
- Inter-account transfers require owner’s consent
Current Account Charges
Banks may charge accounts as stipulated in the opening terms.
Notice of Charge
Banks must send notice of charge, except for check payments, electronic transfers (including ATM cash withdrawals), or pre-agreed service payments.
Collection Fees
Banks can set the amount and collection method for commissions. A 15-day notice is required for modifications, except for reductions or eliminations.
Interest Payments
- Banks may pay interest on current account balances.
- Interest rates may vary based on average balance and client type.
- Interest payment conditions should be in the account agreement, with clear notification procedures for rate/balance changes.
- Annual interest rate applied to the average monthly balance.
- Interest paid at the beginning of the following month.
- Rate decreases require at least 5 days’ prior notice.
Statements and Balance Delivery
Banks and clients can agree on statement frequency, media, and format. Banks must provide a balance statement at least annually.
Current Account Movement Records
- Banks must maintain confidentiality regarding account activity, only providing information to the owner or authorized individuals.
- Courts may order disclosure of specific items for legal proceedings. Records can be identified by date, amount, etc., or any clear format.
- Disclosure limited to account items. Banks may display records in their offices without providing copies.
Checks
Essential Information on a Check
- Drawee’s name
- Place and date of issue
- Amount in words and numbers
- Drawer’s signature
Place of Issue
The check must indicate the place of issue, which determines the withdrawal deadline. If no place is specified, it’s presumed to be the bank’s location.
Drawing Date
The check must have a valid date. If the date is missing or invalid, the check should be protested. Dates can be expressed in commonly accepted formats (abbreviations, numerals, etc.). Checks are always payable on demand, regardless of any other notation.
Revalidation
Expired checks require written revalidation and signature on the back, with the new date.
Amount
The amount must be written in both words and numbers, and they must match. Otherwise, the check should be protested.
Giro Checks or Legal Representation Mandate
These require the representative’s name (individuals) or company name (legal entities).
Stains on Printed Checks
Stains on printed text do not invalidate the check unless they obscure essential terms like “order” or “bearer”.
Mandate or Collection Checks
These authorize the holder to withdraw funds on behalf of the drawer. They must include the phrase “for me”.
Checks for Obligations
These are payment instruments for a specific obligation.
Guarantee Checks
Checks are payment instruments and cannot be used as guarantees. Guarantee checks are not valid.
Check Collection Deadlines
- 60 days: Chilean currency, same place of issue
- 90 days: Chilean currency, different place of issue
- 3 months: Chilean currency, drawn on foreign banks
- 12 months: Foreign currency
Bearer Checks
These are transferable by delivery without endorsement. The holder is presumed to be the owner.
Order Checks
These require endorsement for transfer. The words “to the bearer” are erased or crossed out. Legal entities must add “for power” or “pp” and the company name.
Crossed Checks
These can only be cashed through a bank. Special crossed checks (with a bank’s name) can only be processed by that bank.
Cashing Canceled Checks
The holder must present identification and endorse the check with their RUT.
Non-Payment Order
The drawee bank can refuse payment if instructed in writing by the drawer. This must be published for 3 days in a local newspaper.