U.S. Economic Sanctions and the Corporate Compliance of Foreign Banks


The International Lawyer

A paraître

Départements : Droit et fiscalité, GREGHEC (CNRS)

In the last decade, the U.S. has dramatically increased the enforcement of its economic sanctions arsenal against foreign banks. While this arsenal continues to expand, legal scholarship tends to overlook one of its crucial consequences: a radical change in the compliance functions of the targeted banks. In fact, after entering into specific agreements with the U.S. government, non-U.S. banks commit to reforming their compliance functions according to U.S. standards. The depth of the relationship between the extraterritoriality of U.S. laws and banks’ compliance functions demands further inquiry. This article fills that gapby expounding how economic sanctions legislation drives developments in substantial compliance efforts by foreign banks, discussing the current economic sanctions regime and analyzing important enforcement cases. This Article concludes that, as non-U.S. banks manage the heavy burden of U.S. sanctions more deftly than before, a process of Americanization of corporate compliance is underway in the banking industry and beyond