How does the US fine foreign companies for trading with sanctioned countries, when said companies have no link with the US?

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Hi there,

So i was going through our industry and company course, and today I learnt that the US state can fine companies (as it did to commerzbank) for carrying out activities, deals and projects in sanctioned countries? How can a state fine a companion from another country for its business dealings?

In: Economics

7 Answers

Anonymous 0 Comments

Even if a company does not have any assets in the US they might have some customers or suppliers with some assets in the US. And it is possible to argue in court that since the customer owes your company money then the assets they have in the US is actually your companies assets and can be seised when you do not pay your fine. The US also have deals with other countries to make them collect the fine if it goes unpaid. There are also cases where such a deal have not been in place and the debt collector have been successfull in arguing in court that since the conty does not allow them to collect debt then they should be able to seise any asset in the US connected to any citizen of that country.

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