Plain-English summary
Court allows criminal prosecution of foreign state-owned bank but limits some aspects of immunity
The Court held that federal district courts have jurisdiction under 18 U.S.C. § 3231 to hear criminal prosecutions against foreign states and their instrumentalities. It also clarified that the Foreign Sovereign Immunities Act (FSIA), which governs civil suits, does not provide a blanket bar to criminal prosecutions, and sent parts of the case back to lower courts for further proceedings.
Why this matters
The decision confirms that the U.S. government can bring criminal charges against foreign states and state-owned entities in federal court in many circumstances. That preserves a tool for enforcing U.S. criminal law (including sanctions and fraud statutes) against foreign-state actors and state-owned corporations, while leaving some immunity-related issues for lower courts to sort out.
Who may feel it
- Foreign governments and state-owned companies operating or doing business with U.S. entities
- Banks and financial institutions that handle international transactions subject to U.S. law
- U.S. prosecutors and the Department of Justice
- Businesses and individuals who rely on cross-border banking and sanctions compliance
Key questions
- Does 18 U.S.C. § 3231 give federal district courts jurisdiction to try criminal cases against foreign states and their instrumentalities?