Germany will pay compensation of up to €10,000 (£8,700; $11,000) to victims of a notorious and abusive commune in southern Chile.
Colonia Dignidad was founded by former Nazi soldier Paul Schäfer in 1961.
The commune, which was located 350km (220 miles) south of Santiago, was run as a secretive cult and dozens of children were sexually abused there.
Hundreds of German and Chilean survivors will now be eligible for compensation.
What was Colonia Dignidad?
Colonia Dignidad was a colony set up by Schäfer in the remote Maule area.
He ran it as a secretive cult with members living as virtual slaves and prevented from leaving by armed guards with dogs.
At its peak, 300 Germans and Chileans were living in the 137 sq km (53 sq mile) compound surrounded by wire fencing and overlooked by a watchtower with searchlights.
Children were forced to live separately from their parents and dozens were sexually abused by Schäfer.
And it was not just members of Schäfer's sect who suffered abuse.
Under the military rule of Gen Augusto Pinochet, Colonia Dignidad became a clandestine detention centre. About 300 opponents of the regime were interrogated and tortured in its underground tunnels both by members of the Chilean secret police and Schäfer's associates.
At least 100 people are thought to have been murdered there. One of those believed to have been killed at the site is US academic Boris Weisfeiler, who went hiking in Chile in 1984.