CRIMEPREVENTIONMANUALAntofagasta PLCAnti-Corruption Legislation(Law 20.393 & UK Bribery Act)

November 2014

Aguas Antofagasta

Antofagasta Minerals

Antofagasta PLC

Energía Andina

Ferrocarril de Antofagasta

Minera Antucoya

Minera Centinela

Minera Los Pelambres

Minera Michilla

CRIMEPREVENTIONMANUALAntofagasta PLCAnti-Corruption Legislation(Chile Law 20.393 / UK Bribery Act)

November 2014

Table of ContentsI. INTRODUCTION 04

II. PURPOSE 05

III. SCOPE 06

IV. OVERALL DEFINITIONS 06

V. CRIME PREVENTION MODEL (CPM) 07

A. Crime Prevention Officer (CPO) 09

−FunctionofCrimePreventionOfficer 10

−MeansandPowersoftheCPO 10

−ResponsibilitiesoftheCPO 11

B.ComponentsoftheCrimePreventionModel 13

1.PoliciesandProcedures 13

2.CodeofEthics 13

3.Anti-corruptionRegulations 13

4.WhistleblowingchannelsandcomplaintInvestigation 14

5.DueDiligence 15

6.ContractClauses 16

7.InternalRegulationsonOrder,HygieneandSafety 16

8.ConflictofInterestDeclaration 16

9.GiftsandHospitality 17

C.RiskManagement 17

D.CommunicationandTraining 20

E.MonitoringandReviewingtheCPM 21

VI.HIGHRISKBUSINESSACTIVITIES 22

Donations 22

Sponsorship 23

FundstobeRendered,ReimbursementofExpensesand

CreditCardUse 23

TravelbyEmployeesandThirdParties 23

MergersorAcquisitions 24

Permitting 24

RetainingofServicesandProcurementofGoods 25

SurplusMaterialsforSale 25

VII.NON-COMPLIANCEREPORTINGPROCEDURE 26

VIII. ADMINISTRATIVE SANCTIONS 29

ANNEXES 32

.4

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

I. Introduction

Law20.3931,whichcameintoforceinChiletowardstheendof2009,stipulatesthecriminalliabilityoflegalentitiesfortheoffensesofbrib-ingapublicofficial,financingterrorismandassetlaundering.Similarly,theUKBriberyAct2,whichcameintoforceinJuly,2010,stipulatesthecriminalliabilityforactsofbriberyofpublicofficialsandbriberyintheprivateandpublicsectors,aswellasalsothefailureofcompaniestopreventthem.OthercountriesinwhichAntofagastaplcoperatesalsohaveanti-corruptionlawsinplace.3

Anti-corruption lawsareapplied internationally,sotheactionsofanyemployee, or third party involved in the business of Antofagasta plc,mayhaveanimpactonourorganizationiftheyfailtocomplywiththeseregulations. The above does not preclude the individual liabilities forcommittinganyoftheaboveoffenses.

AspartofourcompliancewiththeAnti-CorruptionLaws(UKBriberyAct,Law20.393andothers)and itsduty to supervise and direct, theBoardofDirectorsofAntofagastaplcapprovedthe implementationoftheCrime Prevention Model(hereinaftertheCPM)inAntofagastaplc.

1SeetheprovisionsofChileanAnti-CorruptionLegislation(Law20.393)inExhibiti.2SeetheprovisionsoftheUKBriberyActinExhibitii.3Someanti-corruptionlawsincountrieswhereAntofagastaplcoperates:USForeignCo-rruptPracticesAct(FCPA),AustraliaBriberyofForeignPublicOfficials,CanadaCorrup-tionofForeignPublicOfficialsAct(CFPOA)andtheForeignTradeLawofthePeople’sRepublicofChina.Seeexhibitsiithroughviformoredetails.

.5

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

ThisCrimePreventionManual(hereinaftertheManual)stipulatestheoperationofthevariousactivitiestopreventandmitigatethepotentialrisks of offenses being committed, which Antofagasta plc, has beenidentified as being exposed to andwhich have been included in theCPM.

TheCPMcomprisesthefollowinginternalelements:

1. CodeofEthics.2. Channelforcomplaints.3. InternalRegulationsonOrder,HygieneandSafety.4. ThePolicies, Instructions,Policies,Proceduresorotherregula-tions specifically defined to support the anti-corruption initiativesimplementedtomitigatetherisksofoffensesidentified.5. The Risk and Compliance Area’s training and communicationsplanthatstipulatesthevariousinstancesandwaysofdeliveringin-formation and trainingemployeeswith regard to theoffenses re-ferredtohereinandtoexecutingtheCPM.

II. Purpose

ThepurposesofthisManualareto:

•Stipulatetheactivitiesandproceduresneededtoeffectivelyimple-mentandoperatetheCPM.•StipulateamechanismforpreventingandmitigatingtherisksofoffensestowhichAntofagastaplcisexposed.•StipulatetheactivitiesoftheCPMforwhichtheCrimePreventionOfficer is responsible in performinghis or her supervision of themodel.•ComplyfullywiththerequirementsstipulatedunderAnti-Corrup-tionLaws.

.6

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

III. Scope

TheManualandCPMapplytoallwhoworkorprovideservicesinorforAntofagastaplcor itsaffiliates.4Thescope includesshareholders,directors, topmanagement,managers, executive officers, employees,temporarystaff,contractorsandadvisorsoftheCompany.

TheCompanyexpectsupright,strictanddiligentbehaviorfromallthepersons identifiedabove incomplyingwiththeanti-corruptionrelatedregulations,specificallymoneylaundering,fundingterrorism,briberyofpublicofficialsandbribery,togetherwiththeirrespectivemeasuresofpreventionandmitigationasstipulatedbytheCompany.

IV. Overall Definitions

Management of a Legal Entity:AccordingtoArticle4ofLaw20.393,theManagementoftheLegalEntityisthetopadministrativeauthority,withthis,inthecaseofAntofagastaplc,beingitsBoardofDirectors.

Bribery of public officials:This isunderstoodtobeofferingorcon-sentingtoprovideanybenefit,whethereconomicorofanyotherkind,toapublicofficial,whethernationalorforeign,sothatheorshedoes,orstopsdoing,something,withinthesphereofhisorherposition,compe-tenceandresponsibilities,intheinterestsofthelegalentity(company).

Bribery:Offeringorconsentingtograntanybenefit,economicoroth-erwise,toanyperson,irrespectiveiftheyareprivateorpublicofficials,nationalorforeign,forsaidofficialstodoorrefrainfromdoinganything,withinthescopeoftheirposition,competenceandresponsibilities, intheinterestofthecompany.

4Law20.393stipulatesandregulatesthecriminalliabilityofthelegalentity.Hence,theagreement to implement the Crime PreventionModel and all arrangements stemmingfromthisagreementmustbeadoptedandbeapplicabledirectlybyeachofthelegalenti-ties(companiesmakinguptheAntofagastaplcGroup.

.7

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Asset Laundering:Anyactintendingtohideorconcealtheillicitoriginofgivengoods,ortoacquire,own,haveorusethegoods,knowingthattheystemfromthecommitmentofanillicitactinvolvingdrugtraffick-ing,terrorism,armstrafficking,promotingchildprostitution,kidnapping,bribery,securitiesmarket,bankfinancingandothers,withtheintenttoprofitfrom,sell,contributethemtoacompany,oranyotherpurpose,knowingtheirillicitorillegaloriginatthetimeofreceivingthegood.

Funding terrorism:Thisisunderstoodtobeanyindividualorlegalenti-tythat,byanymeans,whetherdirectorindirect,requests,collectsand/orprovidesanykindofcontributionforthepurposeofitbeingusedtoexpediteanyactofterrorism,whethersuchisacontributionofspecies,moneyorsomeotherkindofcollaborationwithactivitiesthatqualifyasterroristones.

Associated persons:Thisreferstoanyperson,whetheranindividualor a legal entity,withwhich theCompanyhas currently, or is in theprocessofnegotiatingpotentially in the future, abusinessorservicerelationship. This includes the Contractors, Subcontractors, Advisors,Agentsoranythirdparty,whosebehaviororconduct,becauseoftheirbusinessfunctionand/orrelationshipwithAntofagastaplc,maypossiblyconstitutetheoffensesreferredtoinAnti-CorruptionLaws.

V. Crime Prevention Model

TheCrimePreventionManualofAntofagastaplcconsistsofaseriesofmeasuresofpreventionofthecrimesofasset laundering, fundingterrorism,briberyofpublicofficialsandbribery,whichoperatethroughthevariousactivitiesoftheCPMandarecontained inthisdocument.Thepurposeoftheseactivitiesistomeettherequirementsofa“Crime prevention system”,andtheimplementationofthe“Policies and proce-dures”undertheAnti-CorruptionLaws.Thismanualalsostipulatestherisk identificationactivities, riskcontrols, andsuitablemonitoringandreportabilitymechanisms for preventing, detecting andmitigating therisksassociatedwiththeaboveoffenses.

.8

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Alltheexecutiveofficers,employeesandoutsidestaffofAntofagastaplcarecommittedtocomplyingwiththelawsandregulationsinforceinthecountrieswhere itoperates.Therefore,theCompanywillnottolerateanykindofcorruption,andthecommitmentofanyillicitact,suchasas-setlaundering,fundingterrorism,briberyofpublicofficialsandbribery,isexpresslyforbidden.Consequently,Antofagastaplc:

1. Shall oversee performance of its duty to direct and supervisethroughtheadequateoperationoftheCPM.2.ShallappointaCrimePreventionOfficer.Thisindividualwillholdthepositionforthreeyearsandmaybere-electedforequalperiodswhileholdinghisorhercurrentposition.

TheapplicationandfulfilmentoftheactivitiesstipulatedinthisCPMistheresponsibilityofeachCompanyoftheAntofagastaplcGroup,andtheireffectivenesswillbereportedtoeachoftheirBoardsofDirectorsbytheIndividualInChargeofCrimePrevention.

TheCPMofAntofagastaplciscarriedoutviaaseriesofactivitiesrep-resentedinthegraphicmodelbesides:

.9

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

A. Crime Prevention Officer

Law20.393requirestheappointmentofaCrime Prevention Officer (hereinafterCPO).TheBoardofDirectorshasfullauthoritytoappointtheCPOfora3-yearterm,andmustrecorditsdecisionsinthisregardintherespectiveminutesoftheBoardofDirectors.

TheCPO5 isresponsible forsettingupacrime prevention system,bymeansofanCPM,togetherwiththeCompany’stopmanagement,i.e.,itsBoardofDirectors.

Risk Prevention Model

Crime Prevention Officer

Crime Prevention Manual

Certification of the Model

Output

Risk Matrix

Identification of risk of crime

-Definition of

controls-

Evaluation of compliance with

controls-

Response activity

Support Areas

Legal-

Management-

Risk Management-

Internal Audit-

Ethics Committee

Control Environment

Code of Ethics-

Channel for Complaints-

Internal Regulations-

Policies / Procedures-

Crime Prevention Manual

-Complaint

Management Manual

Labor Laws

Contract appendices > Employees> Contractors

-Clause attached to the Internal Regulations

Six-monthly Report to Board of Directors

Informational report to other areas / companies

Updating and Monitoring the CPM

5Law20.393,article4(3).

.10

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

> Function of the Crime Prevention Officer:

Byhisactions,theCPOrepresentsthecompany’svalues.Heorshealsohasfullandcompleteknowledgeofthefollowing:•Thefunctionsandresponsibilitiesofeachareaofthecompany.•Thelegislationandregulationsissuingfromthelegitimate,compe-tentregulatoryauthorities.•TheCodeofEthics,ProceduresManuals,RegulationsandotherinternalinstructionsofAntofagastaplc.

> Means and Powers of the CPO:

1.InperforminghisorherfunctionsasCPO,theCPOactsautono-mouslyinrelationtotheManagementofAntofagastaplc,itsshare-holdersandcontrollers,withdirectaccesstotheBoardofDirectorsofAntofagastaPlc.2.Heorshehasavailableanannualbudget(meansprovidedbytheExecutiveChairmanorGeneralManagerandapprovedbytheBoardofDirectors)andstaffunderhisorherchargetoimplement,operateandreviewtheCPMincompliancewiththeLaw.6

3.Heorshehasthebasic,necessarytoolstoproperlyperformhisorherroleandresponsibilitiesastheCrimePreventionOfficer.4.TheCPOhasdirect,unrestrictedaccesstothevariousareasoftheorganization,inordertobeabletocarryoutthefollowingactivities:

i)Carryoutspecificinvestigations.ii)Expeditemonitoringofthecrimepreventionsystem.iii)Requestandreviewtheinformationforcarryingoutitsfunc-tions.

6Law20.393,Art4,2):ManagementoftheLegalEntityshallprovidethe individual inchargeofpreventionwithsufficientmeansandpowerstobeabletoperformhisorherfunctions,whichmustconsideratleastthefollowing:a)thenecessarymaterialresourcesandmeanstoadequatelyperformhisorhertasks,consideringthesizeandeconomiccapacity of the legal entity; b) direct access to theManagement of the LegalEntity toinformitingoodtimeandbysuitablemeansofthemeasuresandplansimplementedincompliancewithhisorhermissionandtorenderaccountofhisorhermanagementandreportatleastonasix-monthlybasis.

.11

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

> Responsibilities of the CPO:

1.Overseeproperdevelopment, implementationandoperationoftheCPMintheCompany,togetherwiththeBoardofDirectorsofAntofa-gastaplc.2.CoordinatecompliancebythevariousareasandmanagementsofAntofagastaplcwith lawsandregulationstoprevent thecrimesre-ferredtointhisManual.3.Ensure thateverybody involvedwithAntofagastaplc receives theCodeofEthicsandensuretheycomplywithittopreventanyimproperconduct inthedailyactionsoftheemployeesandserviceproviders.Thismaybecheckedbyreviewingthetrainingonthesemattersthatthecompanymustprovideregularlyforitsemployees,andthroughthereportsofirregularitiesorbreachesoftheCodeofEthics.4.Reportonasix-monthlybasistotheBoardofDirectorsofAntofa-gastaplconthestatusoftheCPMandmattersforwhichheorsheisresponsibleandwhatheorshehasdoneasCPO.AlsoreportinduetimetotheBoardofDirectorsonanysituationthathascometohisorherattentionandwhichcouldbeconsideredanoffense,sothatthelat-tercanadoptwhatevermeasuresmightapply.5.TogetherwiththeBoardofDirectors,promotethedesignandneces-saryupdatestothepolicies,procedures, instructionsandguidelines,includingthisManual,sothattheCPMcanbeoperatedeffectivelyand/orwheneversuchmaybenecessary in lightof anychanges to thecountry’slawsandregulations.6.Overseeknowledgeofandcompliancewiththeprotocols,policies,procedures,instructionsandguidelinesstipulatedaselementsofcrimepreventioninthedailyactionsofthemembersoftheorganizationandtheircollaborators.7.Headupinvestigationswhenthereisavalidcomplaint,orasuspi-cioussituationthatwarrantsone,gatheringanyevidencethatmaybenecessary.8.DefinespecificreviewstocheckcompliancewiththeactivitiesoftheCPM.Alsodeterminetheirscopeandextent.TheresultsofcompletedreviewsmustbereportedtotheBoardofDirectorsortotheapplicableBoardCommittee.

.12

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

9.CheckthedesignandimplementtheCPMtrainingprogramsdesignedforthemembersoftheorganization.10.TogetherwiththeBoardofDirectors,assumeresponsibilityfortheprocessofidentifyingandassessingtherisksofoffensesinvolvingtheimplementation of the control activities for preventing andmitigatingsuchrisksandtheadequateoperationoftheCPM.11.Keepanupdatedlistofanyactivitiesthat,becauseofhowtheyarecarriedoutortheirtypicalfeatures,mayrepresentariskofMoneyLaun-dering,Fundingterrorism,BriberyofpublicofficialsandBribery.Thislistidentifyingsuchactivitiesiscontainedinthe“RiskMatrix”,whichisanintegralpartoftheModel.12. Encourage the fact that the internal processes and controls ofAntofagasta plc should have effective crime risk prevention controlsandmaintainsuitablerecordsofevidenceofcompliancewithandim-plementationofthesecontrols.13.Documentandsafeguardevidenceabouttheircrimepreventionac-tivities.14.Receiveanycomplaintsubmittedduetonon-complianceoftheCPMorthecommissionofanyillicitact,assubmittedbyanyoftheowners,individualsresponsible,directors,topmanagement,executiveofficers,employees, dependents, contractors and third parties related to thebusiness.15.BeastandingmemberoftheEthicsCommitteeofAntofagastaplcandhaveaccesstoallreportsreceivedinrelationtoAnti-CorruptionLaws.

Withoutdetrimenttotheabove,theCPOmayactdirectly,orthroughthestaffunderhisorherchargeorthroughanyassignedperson,todelegatepartofhisorheractivities.

B. Components of the Crime Prevention Model

TheCPMofAntofagastaplchasthefollowingcomponents,whichareofessentialimportancetotheeffectiveoperationandfunctioningoftheModel:

.13

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

1. Policies and ProceduresAllofthepoliciesandproceduresstipulatingdefinitions,regulationsandcontrolsforthecompany’sactivitiesmustbedulydocumented,dissemi-natedandaccessibletoallstaffinvolvedinthem.

2. Code of EthicsTheCodeofEthicsstipulatesaframeworkofbehaviorforthebusiness’dailychallengesbasedontransparency,integrity,compliancewiththeapplicablelawsandmakinggoodbusinessdecisions.Inthisregard,itstipulatesacontrolenvironmentfortheactivitiesthatmightexposetheCompanytolegaland/orcriminalliabilities.

Antofagastaplcdemandsanupright,strictanddiligentbehaviorfromallofitsexecutiveofficers,supervisors,employeesandcollaboratorsincomplyingwiththePreventionModel,withallofthemhavingtocommittothestrictestpossibleobservanceoftheModel.

3. Anti-corruption RegulationsAnybodyactingonbehalfofAntofagastaplcshallnotoffer,promiseorconsenttogiveanypublicofficialorprivateofficer,whetherChileanorforeign,anyeconomicbenefitunderanypretextorcircumstancesandusinganymeans.Similarly,employeesshallalwaystakecaretoensurethattheCompany’smoneyorassets,orthesigningofagreementsorcontracts,areneverusedunderanycircumstancesforillegalendsand/orendsthatcouldconstituteoffenses,suchasthefundingterrorism,moneylaundering,briberyofpublicofficialsandbribery.7

Employeesmustalwaysbealerttoanysituationthatmightseemsuspi-ciousandmightexpeditethecommittingofanyoftheoffensesreferredtoabove,andtheyshallreportthemimmediatelyusingthechannelforcomplaintssetupbyAntofagastaplc.

7Law20.393,CriminalLiabilityofLegalEntities,forbidstheoffensesofbriberyofapublicofficial(nationalorforeign),moneylaunderingandfundingterrorism.TheUKBriberyActforbidsbribery inthepublicorprivatesector,aswellasalsothecompanies’failuretopreventbribery.

.14

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

4. Whistle blowing channels and complaint InvestigationThecomplaintschannel isasystem implementedattheorganization,available through the intranet, internet, email and telephone (toll freenumber), intended to be used as amechanism to submit any com-plaintrelatedtoirregularitiesorviolationsofinternalpolicies,irregularconduct, Ethics Code violations, CPM breaches or potential commis-sionofanyoffenseindicatedintheAnti-CorruptionLaws(Law20.393,UKBriberyAc, etc.). TheCPOshall analyze the complaints receivedthroughthevariouschannelssetinplacebytheorganization,toidentifythosethatcouldhaveCPM implicationsorotherwiseassociatedwithanycriminaloffensesundertheAnti-CorruptionLaws(Law20.393,UKBriberyAct,etc.).

TheCPOmustseetothepropercoordinationofinvestigationslaunchedonthebasisofcomplaintshavingCPMimplicationsorotherwiseasso-ciatedwithanycriminaloffensesundertheAnti-CorruptionLaws(Law20.393,UKBriberyAct,etc.).

Handlingofcomplaintsandcoordinationofcomplaintinvestigationsareconductedasprovidedinthe“ComplaintReviewandReportingMeth-odology.”

Response activitiesTheobjectiveisto launchtheinvestigation,establishresolutions,cor-rectiveaction,disciplinaryactionand/orsanctionsforCPMoffendersorupondetectionofanyredflagsunderAnti-CorruptionLaws.Aspartoftheresponse,thereviewofbreachedcontrolactivitiesmustbecontem-platedinordertoreinforceorreplacethemwithnewcontrolactivities:

CPMresponseactivitiesincaseofanyviolationofAnti-CorruptionLawsareasfollows:

•Reportsanctionsandcontrolenhancements.•Coordinatedisciplinarysanctions.•Registerandfollowuponcasesandsanctions.•Fileareportwiththelawenforcementagencies,ifapplicable.

.15

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

5. Due DiligenceRelationship with third partiesDue diligence audits on prospective business partners Antofagastaplc,whethertocreateastrategicalliance,jointventureorcobranding,notonlycovercommercialandfinancialaspects,buttheyalsoanalyzealltheinformationneededtodetectpotentialtiesbetweentheoutsidecompanyandanyoftheoffensesindicatedinLaw20.393andtheUKBriberyAct.8

Relationship with Contractors and Vendors/AssociatesInductionofAntofagastaplc contractors/vendors (“Associates”)mustinclude a due diligence process contemplating the followingmatters,wheneverapplicable:backgroundchecksonthepartnersorownersofthecompany,investigationofsuspicioussituationsinvolvingtheAssoci-ate, suchasproductorservicepricessignificantlybelowthemarketprice,obtainingcorruptionriskinformationontheAssociate’scountryoforigin,ifaforeigner,inclusionofduediligenceformsaspartofthepaperworknecessaryforthetender,andmaintainingadatabasewiththeAssociatesdeemedineligible.

6. Contract clausesIn compliance with Anti-Corruption Laws, all employment contractswith in-house staff and Associatesmust include clauses, obligationsandnegativecovenantsrelatedtotheselaws.

CompliancewiththisrequirementisundertheresponsibilityofHumanresourcesandContracts,asapplicable,tobereviewedbytheEDPfromtime to time.

Exceptionally, modifications may be introduced into the clauses provided they are approved by Corporate Risk and Compliance.

8TheRiskandComplianceAreaoftheVPFand/orCompanyComplianceOfficer is inchargeofleadingtheduediligenceprocessinordertoassesstheriskofoffensesposedbyanewbusinessrelationshipandsubsequentreportingrequirementsandpreventionassurances.

.16

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

7. Internal Regulations on Order, Hygiene and SafetyIncompliancewithAnti-CorruptionLaws,the InternalRegulationsonOrder,HygieneandSafetyofAntofagastaplcmustincludetheinternalobligations,prohibitionsandsanctionsrelatedtostatedoffenses.Theseproceduresmustberegulated in lightoftheregulations involvingthefundamentalrightsoftheemployees.

8. Conflict of Interest DeclarationUponbeingemployedbytheCompany,newhiresmustsignaconflictofinterestdeclarationanddeclareiftheyhaveaConflictofInterestasdeterminedinTitleIIoftheEthicsCodeofAntofagastaplc.ItmustbereviewedandupdatedifaconflictisidentifiedsubsequenttotheConflictofInterestDeclarationsignedatthetimeofemployment.Thisstatementmustbeprovidedand,afterbeingsigned,deliveredtoHumanResourc-esatAntofagastaplc,withacopytoRiskandCompliance.

Moreover,everyexecutiveofficer,supervisor,employeeandcollabora-torofAntofagastaplc,who,inhisorherrelationshipwithpublicoffi-cials,hasorbelievesthatheorshehasaconflictofinterests,isboundtoreportconflictof interestsituationsthroughtheConflictof InterestDeclaration,availablewithHumanResourcesatAntofagastaplc.Inad-dition,thesamecommunicationmaybedeliveredtoRiskandCompli-anceandintheIntranet.

Inthecaseofassociates,wheneveracontractisrenewedortendered,anyContractororSuppliermustsigntheConflictofInterestDeclarationasindicatedintheRiskManual.

9. Gifts and Hospitality GuidelinesAntofagastaplcemployeesmaynotoffer,giveorreceivegiftsorhos-pitalitywhen:

•ThevalueexceedsUSD100.•Whendoneonaregularorperiodicbasiswiththesamepersonorinstitution.

.17

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

•WhenAntofagastaplcisinanegotiation/tenderprocess,securingapermitorauthorizationforkeyrights.•Itisstrictlyforbiddentooffer,giveorreceivemoney.

For more information, see the Gifts and Hospitality Guidelines.

C. Risk Management9

Togetherwith theBoardofDirectors, theCPO is responsible for theprocessofidentifyingandassessingthepotentialrisksofcommitmentofanoffensetowhichAntofagastaplcisexposed.Asaresultofthisprocess,aCrimeRiskandControlsProfilemustbedrawnup,and itmustbereviewedeveryyearorwhentherearesignificantchangestotheconditionsofthebusiness.

Thefollowingmustbedonetocarryoutthisactivity,inaccordancewiththeRiskManagementManualineffectattheCompany:

•Identifyandassessrisks.•Assessandquantifyrisks.•Identifycontrols.•Assesscontrols.•Monitorandfollowup.

Theprocessmustbedocumented in theRiskSystemestablishedbytheCompany.

1. Identifying RisksRisksmust be identified using a “top down” approach throughworkmeetingsinwhichallkeypeopleparticipate.Alistofthemainrisksce-narios is drawn up involving commitment of the offenseswithin thescopeoftheLawthatmaybecommitted inthedirectand immediate

9Anti-corruptionLegislationRequirements,especiallyarticle4(3)(a)ofLaw20.393andPrinciple3oftheUKBriberyAct.

.18

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

interestorforthebenefitofthecompanyandthatmaybecommittedbytheowners,directors,responsibleindividuals,mainexecutiveofficersorthosewhoperformmanagementandsupervisoryactivities,aswellasbytheemployeesunderthedirectionorsupervisionofanyoftheabove.Therisksareassessedtoestablishtheirvalidityandquantifythem.ThisinformationmustbeincorporatedintotheRiskMatrix.

2. Assessing RisksTherisksidentifiedmustbeassessedtoplacetheminorderofpriority,withaviewtodeterminingtheoperatingareasorprocesseswiththemostexposure.ThisenablestheCPOtofocushisorherresourcesandefforts.

TheImpactandProbabilityparametersareusedtoassesstherisksasindicatedintheRiskManagementManual.

Keypersons,whoareawareorinvolvedintheriskstobediscussedandwhohavetheauthoritytomakedecisionsaboutthecontrolstrategiesandothermethodsofriskmanagement,mustparticipateintheassess-mentoftherisksidentified.

3. Identifying ControlsFor any risks detected, controlsmust be identified for their effectivemitigation.ThesecontrolsareincorporatedandmonitoredbyRiskandCompliancetoassesstheeffectiveoperationoftheCPM.

Foreachcontrol,onemustidentify:

•Descriptionofcontrolactivity.•Frequency.•Identificationofthepersoninchargeofexecutingcontrols.•Evidenceofsupport,amongotheraspects.

.19

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

4. Assessing ControlsThe design and effectiveness of the controls identified in point 3willbeevaluatedwithregardtotheirmitigationoftheriskofanoffensetowhichtheywillbeapplied.

Basedontheevaluationperformed,onemustconcludethatthecontrol:

•Reasonablymitigatestheriskoftheoffense.•Doesnotreasonablymitigatetheriskoftheoffense.

5. Monitoring and Follow UpThepurposeistotakeactionstodetectanynon-compliancewiththeCPMandpossibleexposurestotheoffensesspecifiedunderAnti-Cor-ruptionLegislation(Law20.393,UKBriberyActand/orothers).

TheCPMdetectionactivitiesareasfollows:

•ReviewofcompliancewiththeCPMcontrols.•Reviewoflitigation.•Reviewofcomplaintsandinvestigationscarriedout.

D. Communication and Training

Antofagastaplc isrequiredtoadviseall itsemployeesandassociatesontheexistenceandcontentsofthemodelandthescopeoftheAnti-CorruptionLegislation(Law20.393,UKBriberyActandothers).

Furthermore,forthispolicytobeintegratedintothedailytasksofeachmemberofAntofagastaplc,regulartrainingwillbegiventothemem-bersofAntofagastaplc inorder to transmit theminimumknowledgerequiredofthematterandhowtoapplyitsprocedures.

.20

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Trainingshallconsideratleastthefollowingcontents:

•Definitionoftheoffensesofbribery,briberyofpublicofficials,assetlaunderingandfundingterrorismandlegislationonthesematters.•TheCompany’sPolicieswithregardtothePreventionModel.•BriefexpositiononthecontentsofthePreventionManual.•ToolsandmechanismsusedforimplementingtheModelandtheCodeofEthics.•Examplesofsituationsofriskoftheseoffensesbeingcommitted.•Establishedreportingchannels•Internalregulationsandstandards.•Obligationtoreport.•Disciplinaryconsequences,aswellaslegal(civil,criminal,admin-istrative),ofnon-compliancewiththeinternalandexternalregula-tionsinmattersofassetlaundering,fundingterrorismandbribery.•Responsibilityofeachemployeewithregardtothismatter.

EveryrelevantemployeeofAntofagastaplcshallparticipateinthetrain-inginstancesarrangedbytheCompanyforthesepurposes.

E. Monitoring and Reviewing the CPM

Bymonitoring,theCPO,orwhoeverheorsheappoints,shallregularlycheckthattheCPMworksasitwasdesignedtodo.

In order to carry out themonitoring activities, the CPOmay requestsupport from other areas of the organization, such as Internal Audit(oroutsourcethisactivity),Accounting,amongothers,alwaysprovidedsuchareasarenotinvolvedintheactivitytobereviewed.

TheCPOmayperformthefollowingmonitoringactivities:

•Reviewthesupportingdocumentationofthetestsperformedbythesupportareas.•Checkthecontrolactivities(bymeansofsampling).

.21

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

•Analyzethereasonablenessofthetransactions.• Check compliancewith the restrictions stipulated in the proce-dures.•Others.

Inthosemonitoringactivitieswhereasampleneedstobedetermined,theCPOmustdetermineanddocumentthecriteriontobeused.

Review PlanTheCPOmuststipulateaReviewPlan,whichmustconsiderchecksontheoperatingeffectivenessofthecontrolsimplemented,themitiga-tionoftheriskofcommittingtheoffensesstipulatedandtheoperatingeffectivenessof theCPMas stipulated inAnti-CorruptionLegislation.ThisPlanmustdefinethenumberofreviewsneeded,thematterstobechecked,thefrequencyandtheircontrols,etc.

All operationsgiving rise to an investigationdue to thepossible per-petrationofanyoftheoffensesparticularized inthisManualmustberecorded.Thisrecordmustbekeptforatleastfive(5)years.

Accordingtoarticle4(b)ofLaw20.393,AntofagastaplcmaycertifytheCrimePreventionModelaspertherequirementssetout inthesamestatuteandinrelationtothesituation,size,businessline,levelofrev-enuesandcomplexityofthecompany.

VI. High risk business activities

Donations

ThefollowingobligationsareanintegralpartoftheprocedureregulatingdonationsatAntofagastaplc:10

•Stipulatethechainofauthorizationsformakingdonations.

10ReviewCommunityInvestmentsGuideline,whichdefinesandspecifiesallmattersre-latingtoCompanydonations

.22

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

•Ensurethattheentityreceivingthedonationhastheproperac-creditation(legalvalidity,incorporation,legalrepresentatives,etc.).•Checkthe institution in theRECORDOFDONATION-RECEIVINGINSTITUTIONS–LAW19.885.•Identifytheworkdonebytheinstitutionreceivingthecompany’sdonation.•StipulatethepurposeanduseoftheresourcesdonatedbyAntofa-gastaplc.

Sponsorship

Arecordmustbekeptwiththephysicalevidenceofthecontributionsmadetosponsorevents.Thisrecordmust includeanidentificationoftherecipientorbeneficiaryofthesponsorshipandthepurposeofthebenefit.Theprocessofauthorizationappliedbythecompanytothepro-visionofthesponsorshipmustalsoberecorded,includingdetailedin-formationabouttherequestforsponsorship(ifany).

Funds to be Rendered, reimbursement of expenses and credit card use

Inordertofacilitateperformanceofdutiesonthepartofexecutivesandsomeemployees,theCompanyadvancesfunds,reimbursesexpensesalreadyincurredandprovidescreditcards.

Theprocedurerequiresfillingoutrenderingforms,indicatingexpensedetails,withtherespectivevouchers.Theformsshallbearthesignatureoftheapplicantandapprovalofhisorherdirectsuperior.TheymustfinallybesenttoAccounting.

Thesefundsarenottobeusedtoentertainpublicofficials,norforen-tertainmentexpenses,norforanyotherpurposethanthosespecifiedintheparagraphabove.MoredetailsarefoundintheFundRendering,ReimbursementofExpensesandCreditCardUseprocedure.

.23

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Travel by Employees and Third Parties

Travelexpenseswillonlybereimbursedwhenrelatedto:transporta-tion,accommodations, food,commuting,useofdrycleaningservicesuseoftelephones,carrentalexpenses,entertainmentexpenses,actu-allydisbursed,andsubmittingtherelevantsupportingdocumentationororiginalinvoices.

Inveryexceptionalcases,andincompanieswithcash-onlyeconomies,wherenodocumentssupportingthetransactionareavailable,thetrans-actionmustbedescribedindetailanddiscussedwiththeVP,AreaMan-agerorGeneralManagerinquestion,whoshallevaluateapproval.

TheCompanyshallnotassumeresponsibilityfordisbursementsnotdi-rectlyrelatedtothepurposeoftheworktrip,whichshallbebornebytheemployee.

TheGroupshallnotreimburseexpensesthatgoagainstitsvalues.

Likewise,itisforbiddentoaccepttripspaidbycustomers,suppliersorcontractors,currentorprospective,ofAntofagastaplc.

For more information, please review the Expenses and Travel Guidelines and the Gifts and Hospitality Guideline.

Mergers or Acquisitions

AMergerorAcquisitionprocessshallnecessarilyconsideraDueDili-gencewith an analysis of all of the information that can possibly becompiledontheparticipationof thecompanytobeacquired,orwithwhichamergerisbeingsought,intheoffensesspecifiedinAnti-Cor-ruptionLegislation.

.24

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Permitting

As part of its ordinary course of business,Antofagasta plc needs toobtainseveralsector-specificorotherpermitsrequiredbythebusiness.Communicationsbye-mailwithpublicofficialsshallbeconductedusingtheinstitutionale-mailaddressesofAntofagastaplcandtheinstitutiontowhichtheofficialbelongs. Incaseofanyanomalydetected inthisprocess,thePreventionOfficermustbecontacted.

Retaining of Services and Procurement of Goods

Antofagasta plc is a company governed by the highest ethical stan-dardsand,therefore,itexpectsitsprovidersofgoodsand/orservicestostrictlyadheretoallthelawsandregulationsthatapplytoitsbusinessprocesses.Tothisend,ithasincluded,aspartofitsanalysis,aback-groundcheckonparticipants,theuseoftheduediligencequestionnaireandprovidingparticipantswith theConflictof InterestForm (internalandexternal).

Surplus Materials for Sale

Thesaleofsurplusmaterialsisrelatedtoequipment,tools,materials,suppliesandother itemsdeclarednon-essentialbyacompany,eitherbecausetheyarenolongernecessaryorarenolongerusefulforthemainbusinessactivity.Thesesurplusesareclassifiedas:decommis-sionedfixedassets,obsoletestocks;projectsurplusesandothersur-pluses(scrapmetal,materialindisusefromproductionprocesses).

Generally,thesesurplusesarevaluedasanobsolescenceprovisionorwrite-down,tobereversedatthetimeofsale.

Tosellsurpluses,Antofagastaplcmustconductthefollowingactivities:declarationofnon-essentialassetsbytherelevantbusinessarea;salesprocess;andaccountingoftheactivityinaccordancewiththeAccount-ingPoliciesoftheGroup.

.25

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

(*) This list is not all-inclusive, and it does not cover all business activities presenting higher risk.

VII. Non-Compliance Reporting Procedure

1. General Framework

Antofagastaplcexpectsthat,intheperformanceoftheirtasks,itsem-ployeesandcollaboratorswillactatalltimessubjecttotheprincipleofgoodfaith,whichrequires,amongotheraspects,constantlymaintaininganattitudeofcollaborationwiththeorganization.TheseareconsistentwiththeprinciplesofbehaviorandvaluesstipulatedinourCodeofEth-ics.Aspartofatoolforcomplyingwiththeabove,Antofagastaplchasdesignedandimplementedachannelofcommunications,sothatmem-bersoftheorganizationanditscollaboratorsmayexpress,communi-cateorreportanyirregularitiestheymaydetectintheperformanceoftheirjobs.

Similarly, theorganizationexpects itsemployeesandcollaboratorstoadopt responsiblemeasures to prevent any non-compliancewith theCrimePreventionmodel,soasto lookforguidanceandreportsitua-tions intimetobeabletopreventthemfrombecomingproblems.Tothatend,onemustconsiderthat,asageneralprinciple,ifanyemployeeorcollaboratorofAntofagastaplchasanydoubtsorsuspicionaboutapossibleinfringementofthelaws,ofthispolicyoranyothersofthecompany’spolicies,suchemployeeorcollaboratormayreportthissitu-ationusingitsformalchannelforreceivingthesekindsofreports,viatheIntranetortheInternet.

2. Whistle blowing channels

ThechannelsprovidedbyAntofagastaplcforreportinganyirregulari-tiesareasfollows:

.26

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

•IntranetAddress: http://sistemas.aminerals.cl/sri

•InternetAddress: https://sistemas.aminerals.cl/SRIProduccion/frmNuevoReporte.asp

•Telephone: 800–835–132 (Chile) 1–800–089–969 (Australia) 1–866–488–7958 (Canada) 1–866–835–6085 (UnitedStates) 0808–101–7308 (UnitedKingdom)

•E-mailaddress: lineaetica.consultas@aminerals.cl

3. Reporting

Withoutdetrimenttothe factthattheemployeesandcollaboratorsofAntofagastaplcmayreportthosesituationsthatmight–dependingonthecircumstances–signifyapossibleviolationofthelaws,thispolicyoranyothersofthecompany’spolicies,inapreventivemannerandusingthechannelsdescribedabove,theyshallnecessarilyreportanysuspi-cionsofanyviolationofthe local lawsorthoseofthecountrywherethe company operates, or of theCompany’s policies, regulations andprocedures,whenanyofthefollowingmattersareinvolved:

•Anallegedactofbriberyofpublicofficialsorbriberyofapublicofficial,whethernationalorforeign,oranallegedlinkofAntofagastaplctoanactofbriberyofpublicofficialsorbribery.•KnowledgeorsuspicionofalinkbetweenanemployeeofAntofa-gastaplc,whichinvolvesterroristactsorfundingterrorism,orassetlaundering.•KnowledgeorsuspicionofasupplierorproviderofservicestoAntofagastaplc,whichinvolvesbribery,assetlaunderingorfundingterrorism.

.27

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

AnyreportsinvolvingtheoffensesstipulatedinLaw20.393andtheUKBriberyActwillbereferredtotheCrimePreventionOfficer.

4. Handling Complaints or Reports

TheCPOisresponsibleforadequate,timelyhandlingofcomplaintsandreports receivedthathavetodowiththeoffensesstipulated inAnti-corruptionLegislation(Law20.393,UKBriberyAct,etc.)andheorshewill ensure that the necessarymeasures are adoptedwith regard tosuchcomplaintsorreports.

Reportsofnon-complianceoftheCPMmustconsiderthefollowingas-pects:

•Theindividualmakingthereportorcomplaintmustdescribeinasmuchdetailaspossiblethesituationinwhichheorshewasmadeawareofthetransactionoroperationthatcausedthereport.Heorshemust includethe foundationsonwhichthe indicationsof thispossibleunusualorsuspiciousoperationorsituationarebased.• Ifthere isabeneficiaryofthetransactions,specifythepersonaldataofthisbeneficiary.•Thereportmustcontainasmuchinformationaspossibleabouttheindividualundersuspicionorthoseinvolved.•TheCPOwillkeepaconfidentialfilewithalloftheinformationre-ceivedandwhichmayonlybeaccessedbythepeoplewho,becauseoftheirposition,mustbeinvolvedinsomewayintheinvestigationofthereportandonlywithregardtotheessential informationforthatinvestigation.

5. Confidentiality of the report

Allreportswillbekeptstrictlyconfidentialand,hence,theywillonlybeknowntotherecipientofthereportandtheIndividualinChargeofPre-ventionand/orthepeoplewhoneedtobeinvolvedintheinvestigation.

.28

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

6. Reporting to law enforcement agencies

Iffactsareuncoveredthathavethecharacteristicsofacrime,theCPOshallevaluate,togetherwiththeLegalCounselandBoardofDirectorsoftheCompany,whethertomaketherespectiveaccusationstotheCourtsofLaw,thePublicProsecutororthePolice.ThisactionisspecifiedasanattenuatingcircumstanceforthecriminalliabilityofthelegalentityinArt.6ofLaw20.393,whichstates.

“The legal entity will be understood especially to collaborate substantially when, at any stage of the investigation or legal proceedings, its legal representatives have informed the authorities of the punishable event, or contributed information to establish the events investigated, before knowing that it was the subject of legal proceedings”.

VIII. Administrative Sanctions

EveryemployeeofAntofagastaplcmustknowthecontentsoftheModelandshallbegovernedbyitsguidelinesatalltimes.TheCPOcontrolscompliancewiththisModelandputsintopracticetheverificationpro-grams.

Non-compliancewith the termsandconditionsof thisManual by theemployees is grounds for sanctions,whichmay range fromaverbaladmonitiontodismissal,dependingontheseriousnessoftheviolation,notwithstandinganyotheractionsdeemedapplicabledependingonthecase.

Foradvisors,contractorsorsuppliers,non-compliancewiththetermsandconditionsofthisManualisdeemedagrossbreachofcontractandisgroundsforimmediateterminationofthecontractinforce.

TheemployeesmustreportanyinfringementsnotedofthePreventionModeltotheirsupervisorsortheCPO,orthroughthereportingmecha-nisms.

.29

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

TheemployeesofAntofagastaplcshallbeawarethattheymaybethesubjectofinternalinvestigations,ifthereisanyindicationoranyreporthasbeen received involvingnon-compliancewithsome lawor inter-nalregulationofthecompanywithinAnti-corruptionLegislation(Law20.393,UKBriberyAct,etc.).Employeesshallcollaboratefullywiththeinternal investigationprocedurescarriedoutwithinthe frameworkoftheCPM.CompliancewiththepoliciesandproceduresspecifiedinthisManual, intheCodeofEthicsand intheotherdocumentssupportingtheModelismandatoryandtheyareincorporatedintothefunctionsandresponsibilitiesassignedtoeachemployee.

Theadvisors,contractorsandsuppliersofAntofagastaplcaresubjecttothesameobligationtocollaborate,whichisplacedonrecordintherespectivecontractsoragreementssigned.

.30

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

.31

CRIM

E PR

EVEN

TIO

N M

AN

UA

LAnnexesTheseannexesarereferredtotheprovisionsoftheAnti-CorruptionRe-gulationsin:Chile,UnitedKingdom,UnitedStates,Australia,CanadaandthePublicRepublicofChina.

Ontheunderstandingthattheanti-corruptionlegislationsareappliedin-ternationally,thefactthattheUKBriberyActhasbeendescribedasthefar-reachinginscopeandthetoughestlegislation,andwiththeintentiontoprotectthecompanyanditsemployees,forallpurposesAntofagastaplcwilldevelopitscrimepreventionmodel,guidelinesandproceduresinaccordancewiththeUKBriberyAct.

.32

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Anexo i

Chile Law 20.393RequireshavinginplaceaCrimePreventionModelinordertopreventthecommissionofcriminalacts:moneylaundering,fundingterrorismandbriberyofpublicofficials.

InitsArticle3,theLaw20.393setsoutthe‘Attributionofcriminalres-ponsibility’.LegalpersonsshallbeliablefortheoffenseslistedinArticle1thatwerecommitteddirectlyandimmediatelyintheirinterestorfortheirbenefit,bytheirowners,drivers,managers,seniorexecutives,re-presentativesorthoseengagedinadministrationorsupervisionifthecommissionoftheoffenseisaconsequenceofbreach,bythelatter,ofthedutiesofmanagementandsupervision.

Underthesameassumptionsoftheprecedingparagraph,legalpersonsshallbe liableforcrimescommittedby individualswhoareunderthedirectionordirectsupervisionofanyofthepersonsmentionedintheprecedingparagraph.

Supervisorydutiesarefulfilledwhen,priortothecrime,thelegalper-sonhasadoptedandimplementedmodelsoforganization,managementandsupervisiontopreventcrimes.

Legalpersonsshallnotbeliableincasesofnaturalpersonsmentionedintheprecedingparagraphs,havecommittedtheoffensesolelytotheiradvantageorforathirdparty.”

Anexo ii

UK Bribery Act 2010TheUKBriberyAct(hereinafter“Act”)isalawenactedbytheUnitedKingdomParliamentthatseekstostrengthentheanti-briberylegislation.Indeed,ithasbeendescribedasthehardest,globally,oflawscomparedinthistopicestablishesprisonsentencesof10years.

.33

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Section12oftheActprovidesthatthecourtswillhavejurisdictionoverthesections1,2or6offencescommittedintheUK,buttheywillalsohave jurisdiction over offences committed outside the UKwhere thepersoncommittingthemhasacloseconnectionwiththeUKbyvirtueofbeingaBritishnationalorordinarilyresidentintheUK,abodyincorpo-ratedintheUKoraScottishpartnership.

TheActcreatesanewoffenceundersection7whichcanbecommittedbycommercialorganisationswhichfailtopreventpersonsassociatedwiththemfromcommittingbriberyontheirbehalf. It isafulldefencefor an organisation to prove that despite a particular case of briberyitneverthelesshadadequateprocedures inplace topreventpersonsassociatedwithitfrombribing.

Astheprinciplesmakeclearcommercialorganisationsshouldadoptarisk-basedapproachtomanagingbriberyrisks.Proceduresshouldbeproportionatetotherisksfacedbyanorganisation.Nopoliciesorpro-ceduresarecapableofdetectingandpreventingallbribery.

Arisk-basedapproachwill,however,servetofocustheeffortwhereitisneededandwillhavemostimpact.Arisk-basedapproachrecognisesthatthebriberythreattoorganisationsvariesacrossjurisdictions,busi-nesssectors,businesspartnersandtransactions.

Theseprinciplesarenotprescriptive.Theyare intendedtobeflexibleandoutcomefocussed,allowingforthehugevarietyofcircumstancesthatcommercialorganisationsfindthemselvesin.Smallorganisationswill,forexample,facedifferentchallengestothosefacedbylargemulti-nationalenterprises.Accordingly,thedetailofhoworganisationsmightapply these principles, taken as a whole, will vary, but the outcomeshouldalwaysberobustandeffectiveanti-briberyprocedures.

Proceduresputinplacebycommercialorganisationswishingtopreventbriberybeingcommittedontheirbehalfshouldbeinspiredbysixprin-ciples:1)Proportionateprocedures:Acommercialorganisation’sproce-durestopreventbriberybypersonsassociatedwithitareproportionate

.34

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

tothebriberyrisksitfacesandtothenature,scaleandcomplexityofthecommercialorganisation’sactivities;2)Top-levelcommitment:Thetop-levelmanagementofacommercialorganisation (be itaboardofdirectors,theownersoranyotherequivalentbodyorperson)arecom-mittedtopreventingbriberybypersonsassociatedwithit;3)RiskAs-sessment:Thecommercialorganisationassessesthenatureandextentofitsexposuretopotentialexternalandinternalrisksofbriberyonitsbehalfbypersonsassociatedwithit;4)DueDiligence:Thecommercialorganisation applies due diligence procedures, taking a proportionateandriskbasedapproach,inrespectofpersonswhoperformorwillper-formservicesfororonbehalfoftheorganisation,inordertomitigateidentifiedbriberyrisks;5)Communication:Thecommercialorganisationseekstoensurethatitsbriberypreventionpoliciesandproceduresareembeddedandunderstoodthroughouttheorganisationthroughinternalandexternalcommunication,includingtraining,thatisproportionatetotherisksitfaces;6)MonitoringandReview:Thecommercialorganisa-tionmonitorsandreviewsproceduresdesignedtopreventbriberybypersonsassociatedwithitandmakesimprovementswherenecessary.

Anexo iii

US Foreign Corrupt Practices Act (FCPA)TheFCPAregulationsprohibitofferingtopay,promisetopay,pay,orauthorizepaymentofmoneyoranythingofvaluetoaforeignofficialforthepurposeofinfluencinganyactordecisionoftheforeignofficialinhisofficialcapacityortosecureanadvantageinappropriatetoobtainorretainbusiness.

The FCPA potentially applies to any individual, firm, officer, director,employeeoragentofafirmandanystockholderactingonbehalfofacompany.Individualsandfirmsmayalsobepenalizediftheyorder,au-thorizeorassistanyotherpersontoviolatetheanti-briberyorconspiretoviolatethoseprovisions.

.35

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Under theFCPA,UnitedStates jurisdictionovercorruptpayments toforeignofficialsdependsiftheviolatorisan“issuer”(“issuer”),a“do-mesticcompany”(“domesticknow”),oranationalorforeigncompany.

Anexo iv

Australia Bribery of Foreign Public OfficialsAustraliaratifiedtheOECDConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactions(theConvention)on18October1998.Australia’s implementing legislation(theCriminalCodeAmendment(BriberyofForeignPublicOfficials)Act1999(Cth)),entered into force on 17 December 1999, wich inserted Division 70intotheCriminalcode.TheConventionrequirescountriesto legislateagainstthegivingorofferingofabribetoaforeignpublicofficialtogainorretainabussinessadvantage.

Asnotedabove,AustraliaimplementinglegislationfortheConventiniscontainedinDivision70oftheCriminalcode.ThelawappliestoconductoccurringinAustraliaorinaforeigncountrybyanAustralianresidentorcitizen,oracorporationincorporatedinAustralia.

Section7.02oftheCriminalCodecreatestheoffenceorbribingafo-reignpublicoficial.Theoffenceiscommittedifaperson:(a) p r o v i -desabenefittoanotherperson;or(b)causesabenefittobeprovidedtoanotherperson;or(c)offerstoprovide,orpromisestoprovideabenefittoanotherperson;or(d)causesanofferoftheprovisionofthebenefit,orapromiseofprovisionofabenefit,tobemadetoanotherperson;and(e)thebenefit isnot legitimatelyduetotheotherperson;and(f)thefirstmentionedpersondoessowiththeintentionof influencingaforeignpublicoficial in theexerciseof theofficial’sdutyasa foreignpublicoficial inorderto:(i)obtainorretainbusiness;or(ii)obtainorretainabusinessadvantagethatisnotlegitimatelyduetotherecipient,orintendedrecipient,ofthebusinessadvantage.

.36

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

Anexo v

Canada Corruption of Foreign Public Officials Act (CFPOA)Canada’s foreigncorruptionavoidance legislation is theCorruptionofForeignPublicOfficialsAct(CFPOA).TheCFPOAwasenactedin1999,moretantwodecadesaftertheUSForeignCorruptPracticesActandover a decade before theUK brought into forcé th Bribery Act. TheCFPOAwasenactedinresponsetotheOECD’santi-briberyconvention,wichCanadasignedinlate1997andratifiedinlate1998.TheCFPOAisdeliberatelysimilarinmanywaystotheUSFCPAandinarobustregimewichnecessitatescarefulcomplianceactivitybyCanadiancompaniesandindividualscarryingonbusinessabroad.

ConsistentwiththeOCDEConvention,theCFPOAseekstocurtailco-rruptpracticesbyCanadiansandCanadianbusinessesoperatingabroad.Morespecifically,itfocusesonactsofbriberyoffenceintheCFPOAisprescribedinsection3(wichisverysimilartoboththeFCPAandtheOECDConvention):

(1)Everypersoncommitsanoffencewho,inordertoobtainorretainanadvantageinthecourseofbusiness,directlygives,offersoragreestogiveorofferaloan,reward,advantageorbenefitofanykindtoaforeignpublicoficialortoanypersonforthebenefitofaforeignpublicofficial(a)asconsiderationforanactoromissionbytheofficialinconnectionwiththeperformanceoftheofficial’sdutiesorfunctions;or(b)toinducetheofficialtousehisorherpositiontoninfluenceanyactsordecisionsoftheforeignstateorpublicinternationalorganizationforwichtheoffi-cialperformsdutiesorfunctions.

(2)Everypersonwhocontravenessubsection(1)isguiltyofanindic-tableoffenceandliabletoimprisonmentforatermnotexceedingfiveyears.

TheCFPOAalso prohibits the laundering of property or procedes ofanypropertyobtainedorderivedfrombriberyofaforeignpublicoficial,inCanadaoroffshore.PossessioninCanadaofpropertyorprocedes,

.37

CRIM

E PR

EVEN

TIO

N M

AN

UA

L

wheatherfrombriberyorlaunderingisanoffence.Furtheritprohibitsaconspiracyoranattempt,aidingorabetting,anintentionincommon,orcounselingotherstocommitbriberyofaforeignpublicoficial,launde-ringpropertyandprocedes,orpossessionofpropertyandproceeds.

Anexo vi

Provisions under Public Republic of China Anti-unfair Competition LawThePRCAnti-UnfairCompetitionLaw(the“AUC”)providesthatbusi-nessoperatorsmaynotsellorpurchaseproductsorservicesthroughbribing the opposite parties with properties or with other means. Aparty’sactofpayingrebatetotheoppositepartyoffbalancesheetandinsecretshallbedeemedaspayingbribe;theoppositeparty’sactoftakingrebateoffbalancesheetandinsecretshallbedeemedasaccep-tingbribe(Article8).

TheAUCfurtherprovidesthat:wheretheactsofbusinessoperatorswhosellorpurchaseproductsorservicesthroughbribingwithproper-tiesorwithothermeansconstituteacrime,thesebusinessoperatorsshall assume criminal liabilities in accordancewith the criminal laws(pleasereferto“PRCCriminalLaw”onthenextpagehereoffordetails);ifsuchactsdonotconstituteacrime,thein-chargeauthoritymayfinethemintherangeofRMB10,000toRMB200,000inaccordancewiththe seriousness of each specific case and shall confiscate all illegalincomes(ifany)derivedtherefrom(Article22).

Interim Provisions on Banning Commercial BribeTheInterimProvisionsoftheStateAdministrationofIndustryandCom-merceonBanningCommercialBribery (“BCB”)providesthatentitiesandindividualsshallnotacceptorseekbribewhensellingorpurcha-singcommoditiesorserviceswithintheterritoryofPRC(Article4).ApartywhichviolatestheBCBtosellorpurchasecommoditiesorser-vicesbypayingbribeshallbeimposedafineintherangeofRMB10,000toRMB200,000pursuanttoArticle4oftheAUCinaccordancewith

thecircumstancesofeachspecificcase,andall illegal incomes(ifany)derivedtherefromshallbeconfiscatedbyAdministrationof IndustryandCommerce.Apartywhichsellsorpurchasescommoditiesorservicesbyreceivingbribeshallbesanctionedassamewayastheaforesaid;ifsuchparty’sbehaviorsconstituteacriminaloffence,suchpartyshallbeinvestigatedandprosecutedbythejusticeauthorities(Article9).

Provisions under Public Republic of China Foreign Trade LawPRCForeignTradeLaw(“FT”)appliestoforeigntradeandrelatedintellectualpro-pertyprotection.Foreigntradethereinreferstoimportandexportofcommodities,technologiesandinternationaltradeofservices(Article2).

Article33ofFTprovidesthatunfaircompetitionbehaviorsareforbiddeninforeigntradebusiness,includingsalesatunfairlylowprices,collaboratingbids,advertisingdishonestly,bribingandsoon.

Article33oftheFTgoesontoprovidethat:apartywhoconductedunfaircompe-titionbehaviorsinforeigntradebusinessshallbesanctionedinaccordancewiththe anti-unfair competition lawsand regulations; if suchbehaviorsdamage theorderofforeigntrade,theauthorityinchargeoftheforeigntrademayeliminatethedamagebymeasuresof,forexample,banningthepartyfromimportandexportoftherelatedcommoditiesandtechnologies.

Public Republic of China Criminal LawThePRCCriminalLaw(“CL”)providesthatemployeesofcompanies,enterprisesorotherentitieswhomakeuseoftheirworkingconveniencestoseekpropertiesor unlawfully accept properties fromother people, andmake benefits for suchpeople,shall,incasesinvolving“relativelylargeamounts”,bepunishedwithim-prisonmentorcriminaldetentionforlessthan5years;incasesinvolvinga“largeamount”,withimprisonmentofover5years,andmaybesubjecttoforfeitureofproperty(Article163).

TheaforesaidArticle163alsoprovidesthatemployeesofcompanies,enterprisesorotherentities,whointhecourseofeconomiccontacts,receivepersonalkick-backsandcommissionsinvariousformsinviolationofrulesofthestate,shallbepunishedaccordingtoprovisionsundertheprecedingparagraph.

Article 164of theCLprovidesthatofferingproperty tocompany,enterpriseorotherentities’employeesforimproperbenefitsshall,incasesinvolving“relativelylargeamounts”,bepunishedwithimprisonmentorcriminaldetentionforlessthan3years;forcasesinvolvinga“largeamount”,withimprisonmentofover3yearsbutlessthan10years,andwithfine.

Visu

al C

once

ptio

n/ R

acic

Gru

po D

iseñ

o

Risk Prevention Model

Crime Prevention Officer

Crime Prevention Manual

Certification of the Model

Output

Risk Matrix

Identification of risk of crime

-Definition of

controls-

Evaluation of compliance with

controls-

Response activity

Support Areas

Legal-

Management-

Risk Management-

Internal Audit-

Ethics Committee

Control Environment

Code of Ethics-

Channel for Complaints-

Internal Regulations-

Policies / Procedures-

Crime Prevention Manual

-Complaint

Management Manual

Labor Laws

Contract appendices > Employees> Contractors

-Clause attached to the Internal Regulations

Six-monthly Report to Board of Directors

Informational report to other areas / companies

Updating and Monitoring the CPM