Extraterritorial Jurisdiction Of States In Regulating International Banking
- IJLLR Journal
- 16 hours ago
- 1 min read
Lakshmi Sravani Kodukula, B.A.LL.B., India International University of Legal Education and Research, IIULER, Goa
ABSTRACT
International Banking enables countries to transfer money across borders through networks such as SWIFT, CHIPS, and Fedwire. However, there is no common law governing cross-border transactions, which allows powerful countries like the U.S. and China to apply their national laws to punish foreign banks for violating the laws, even when the act of a foreign bank is legal in its own country. This becomes a greater problem for the smooth flow of transactions. This paper examines how the extraterritorial jurisdiction of states is justifiable through the ‘effects doctrine’ and ‘protective principle’ from the perspective of imposing states, and it also argues how this unilateral enforcement creates conflict and raises legal issues across the world by using a comparative study of countries. Finally, the paper also gives a balanced approach for a harmonious global trade and banking stability
Keywords: SWIFT, CHIPS, Fedwire, Extraterritorial Jurisdiction, International Banking.
