Sanctioning Regime and Fine System
Comprehensive framework of administrative sanctions established by Law 21.719, with specific classification of infractions, proportional graduation criteria, and regulatory risk mitigation strategies.
Sanctioning Regime - Article 35
Three categories of infractions: minor (up to 5,000 UTM), serious (up to 10,000 UTM), very serious (up to 20,000 UTM). The Agency considers graduation criteria based on nature, intentionality, and damage caused.
In cases of recidivism for non-SME companies, and only for serious or very serious infractions, the fine may reach 2% or 4% of annual revenue respectively, if this amount is greater than the fixed fine in UTM.
Fine: Up to 20,000 UTM
Most serious infractions classified in Article 34 quater. In cases of recidivism for non-SME companies, it may reach up to 4% of annual revenue.
Examples Article 34 quater
- Fraudulent processing of personal data
- Maliciously using data for different purposes
- Processing sensitive or minor data in violation of the law
- Deliberately omitting communication of security breaches
Fine: Up to 10,000 UTM
Serious infractions classified in Article 34 ter. In cases of recidivism for non-SME companies, it may reach up to 2% of annual revenue.
Examples Article 34 ter
- Processing data without consent or legal basis
- Communicating or transferring data without necessary consent
- Preventing or hindering exercise of data subject rights
- Violating security obligations (Art. 14 quinquies)
Warning or Fine up to 5,000 UTM
Minor infractions classified in Article 34 bis. May be sanctioned with written warning or fine of up to 5,000 monthly tax units.
Examples Article 34 bis
- Failure to comply with information and transparency duty (Art. 14 ter)
- Omitting response or responding out of term
- Lacking updated and operational contact means
- Non-compliance with general Agency instructions
Graduation Criteria
The Agency considers multiple factors to determine the specific sanction within each range established by law.
Aggravating Factors
- Continued nature of the infraction
- Obtaining benefits from the infraction
- Lack of cooperation with the Agency
Mitigating Factors
- Spontaneous adoption of corrective measures
- Voluntary designation of DPO
- Active cooperation during investigation
Impact of Fines in UTM
Fines are established in UTM (Monthly Tax Unit). A maximum fine of 20,000 UTM may represent approximately USD $1.2 million (1 UTM ≈ USD $61 at current exchange rate).
* Only in cases of recidivism for non-SME companies, serious/very serious fines may reach 2%/4% of annual revenue if this amount is greater.
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