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

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Anonymous 0 Comments

Well, it doesn’t work on your average mom and dads shop. But large companies like a bank usually operate globally, even if their origins an global HQ isn’t in the US, they will have business there.

So their options are to either pay the fine or get out of the US market. Most opt for the first option, but you will see companies threatening to leave if legislators for example want to introduce more regulation.

edit: found the subsidiary. They’re called Commerz Markets LLC, based in NYC. https://www.worldwide.commerzbank.com/en/home/inhalte/niederlassungsseite_5555.jsp
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