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

Question

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

Answer 1

The Commerzbank has branches in the US and is therefore partially in US juristication.

They can fine pretty much any company that does business in the US for whatever reason, and the options that company has is either paying the fine or retreating completely from the US.