Legal Risks of Doing Business Abroad
Aug 22, 2006
Author: Iwan Emanuel

In a recent case, three UK businessmen (known as the Enron or NatWest 3) are to be extradicted to the US for an alleged UK fraud against a US bank, which they all deny. The new UK/US extradition Treaty does not require any evidence to be presented before a UK citizen is sent to the US. There simply needs to be a request by the US Government. On such request, the UK citizens will be extradicted to the US for trial where they may well be held in custody for up to 2 years before their trials. US citizens up for the same offence would be held on bail. Also the US has not ratified the Extradition treaty, so it does not yet operate on a reciprocal basis.

Iwan Emanuel says:

We have had clients concerned about doing business with the US in consequence of this decision. What is clear is that offences committed in the UK can lead to prosecution elsewhere. In a second case, a Mr Ian Norris allegedly involved with a price fixing arrangement is also about to be extradicted. When Mr Norris committed the alleged offence it was not an explicit criminal offence in the UK. This month, the Government gave the go-ahead for extradition to the US of a UK computer hacker. Other companies are concerned with employees’ safety when doing business abroad and large product liability claims in some countries like the US where huge damages can be awarded of millions of dollars. What is clear is that doing business abroad is not without risk and it is wise to take legal advice on how best to protect your position.

Call Iwan Emanuel on 01494 521301.