9:
(iii) 1956 (£):
(a) We assume that the term "US citizen" covers natural persons
If it does and not legal persons under the laws of the US. extend to legal persons and if as a result it includes overseas branches of US companies, the US authorities should be aware of potential problems of implementation.
(b) Any regulations should make it clear that "US citizen" does not apply to US nationals working for companies overseas in their capacity as employees or officers of such companies, and should not be applied to other US nationals overseas without paying a proper regard to the legitimate concerns of other states and compliance with their laws.
(c) Given the sensitivity of the question of extraterritorial claims to jurisdiction, the assertion of jurisdiction over non- US citizens should be limited to cases where the conduct in
When question involves a substantial connection with the US. action is contemplated against a UK citizen or if a substantial part of the conduct in question took place in the UK, prior consultation with the UK Government should be sought.
(iv) 1957 (a) (2):
The US claims jurisdiction over the offence in s 1957 (a) when it is committed outside the US if the defendant is a US
That person as defined in s 3077 of Title 18 of the US Code. definition is wide and includes foreign subsidiaries of US corporations. The US authorities should be aware that attempts. to exercise this extraterritorial claim to jurisdiction would be
see the comments likely to give rise to friction with the UK: on 1956 (f) above under (c).
(v) S 1354:
It is not clear how the US authorities intend to define
We assume "person". We should be grateful for clarification. that it will not be interpreted in an extraterritorial way: any attempt to enforce this provision extraterritorially in relation to a UK person would be likely to give rise to friction with the UK.
(vi) s 1356:
This gives the Secretary of the Treasury a new summons authority. The definition of financial institution limits this
But the Treasury to an "agency, branch or office within the US". will be able to serve a summons on the offices of a foreign financial institution in the US and seek documents located abroad. The US authorities should be aware that any attempt to compel the production of documents located in the UK would be viewed as an extraterritorial claim to jurisdiction and would be likely to give rise to friction with the UK.
į
IN CONFIDENCE