Us Law Abroad: How Far Does It Reach?

US citizens are subject to US laws, even when they are outside the country. However, the US government can only enforce these laws in certain situations. For instance, if a US citizen commits a crime in another country, they may be prosecuted in the US if the victim is a US citizen. Additionally, the US has passed laws that include jurisdiction outside of its territory, such as the PROTECT Act of 2003, which prohibits US citizens from partaking in illicit sexual conduct abroad with minors. US citizens are also expected to pay US taxes on their income, even if they live abroad.

US citizens are liable for taxes, regardless of where they live

The only way to avoid this requirement is to renounce your US citizenship, though this can be a costly choice and is rarely wise. Even then, you may not be out of the US tax system forever.

Failing to file your taxes when required could lead to fines, interest charges, and even jail time. US citizens living abroad who fail to file US taxes risk passport denial, penalties, and even criminal charges. The IRS charges penalties for both late filing and late payments. If your lack of filing is willful, meaning you knowingly avoided your US tax requirements while living abroad, then more serious legal consequences may apply.

Many Americans living abroad qualify for special tax benefits, such as the foreign earned income exclusion and foreign tax credit, but they can only get them by filing a US return.

It is illegal to bribe foreign officials

The Foreign Corrupt Practices Act (FCPA) of 1977 prohibits US citizens and entities from bribing foreign government officials to benefit their business interests. The FCPA is a federal law that applies worldwide, specifically targeting publicly traded companies and their personnel, including officers, directors, employees, shareholders, and agents. The Act also covers US businesses, foreign corporations trading securities in the US, American nationals, citizens, and residents engaging in corrupt practices abroad, regardless of their physical presence in the US.

The anti-bribery provisions of the FCPA make it illegal for US persons and certain foreign issuers of securities to offer, pay, promise to pay, or authorise payment of money or anything of value to any foreign official to influence their official actions, induce them to violate their lawful duty, or gain any improper advantage in obtaining or retaining business. This includes indirect payments made through intermediaries.

The FCPA defines bribes as "anything of value", encompassing gifts, travel expenses, entertainment, job/internship offers, scholarships, charitable donations, watches, cars, houses, and even stocks or bonds. For example, in 2012, Eli Lilly and Company, a US pharmaceutical firm, settled an FCPA case that included improper payments such as gifts, travel, and entertainment expenses made through its subsidiaries to foreign officials in Russia, Brazil, China, and Poland.

The FCPA is jointly enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), with criminal and civil penalties, respectively. Imprisonment for FCPA violations is uncommon but can include prison or house arrest, with an average sentence of around 30 months. Investigations are often lengthy, averaging around 39 months.

The FCPA also requires companies whose securities are listed in the US to meet its accounting provisions, including accurately reflecting transactions and maintaining internal accounting controls. These provisions are designed to prevent the falsification of books and records and the circumvention of internal control systems.

The US has jurisdiction in embassies and military bases

The US has jurisdiction in its embassies and military bases located outside its borders. This means that US laws and policies apply in these spaces, even though they are technically on foreign soil.

For example, the US government has established laws and policies to protect its citizens abroad, including those working or living on US military bases or in embassies. This protection includes the right to fair and equitable treatment by the US government regarding taxation, citizenship of progeny, veterans' benefits, voting rights, and Social Security benefits. The US government is also responsible for assisting US citizens who are unlawfully detained or imprisoned by foreign governments.

In terms of environmental regulations, while the US Environmental Protection Agency (EPA) does not have the authority to regulate environmental conditions in foreign countries, US military bases overseas are still expected to comply with the environmental laws of their host country or jurisdiction. This requirement is outlined in Executive Order 12088, which applies to all Department of Defense installations outside the US and its territories. Additionally, US military bases may be subject to treaties or other bilateral or multilateral agreements that outline specific environmental standards that must be met.

The US has mutual legal assistance treaties facilitating joint investigations with many nations

The United States has established Mutual Legal Assistance Treaties (MLATs) with many countries, which are agreements for the purpose of gathering and exchanging information to enforce public or criminal laws. These treaties allow countries to request and obtain evidence for criminal investigations and prosecutions.

MLATs can be used to formally interrogate a suspect in a criminal case who resides in a foreign country. The US has MLATs with the EU, and Caribbean nations, for example. The US-EU MLAT covers conditions relating to the provision of mutual legal assistance in criminal matters, including the exchange of bank information. The US-Caribbean MLATs do not cover US tax evasion, however.

In the absence of a treaty, countries can still provide mutual legal assistance through their justice ministries, joint investigations between law enforcement agencies, emergency disclosure requests, or letters rogatory.

The US also has laws that govern the activities of its citizens and organisations abroad. For example, the US government prohibits US organisations from participating in boycotts of other countries and from providing information about individuals to countries for boycott-related reasons. The US Foreign Corrupt Practices Act (FCPA) also applies to unlawful gifts and payments given to foreign governments or political officials to influence decisions.

US citizens can be extradited to stand trial in the US

US citizens are subject to the laws and regulations of the country they are in. If a US citizen is arrested abroad, they must go through the foreign legal process.

Extradition is the formal process by which a person found in one country is surrendered to another country for trial, punishment, or rehabilitation. Extradition law in the US is a collection of federal laws that regulate the extradition process. The US has extradition treaties with 116 countries.

The US Department of Justice's Office of International Affairs (OIA) provides information and advice to federal and state prosecutors about the procedure for requesting extradition from abroad. OIA also advises and provides support to federal prosecutors handling foreign extradition requests for fugitives found in the US.

If a US citizen is detained in Brazil, the US Embassy or Consulate closest to the place of arrest should be contacted. A consular officer will visit the prisoner, provide a list of local attorneys, and notify family or friends on request. However, a consular officer cannot demand the immediate release of a US citizen arrested abroad or pay legal fees and/or fines with US government funds.

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