The Inadequate Disclosure of Business Conducted in Countries Designated as State Sponsors of Terrorism

摘要

I.Introduction In most circumstances, U.S. persons are prohibited from doing business in countries designated by the U.S. Department of State as State Sponsors of Terrorism (SSTs)~1 and subject to U.S. sanctions. However, investors in the U.S. financial markets often cannot find out whether the companies in which they wish to invest are doing business in SSTs. This article maintains that U.S. financial and foreign policies should be coordinated in order to create a sensible regime to govern both securities and security. The very existence of this conflict may be somewhat surprising. One might assume that if the United States has imposed sanctions on an SST, then U.S. companies may not conduct business in the embargoed nation, and U.S. investors may not invest in companies that conduct business there. In a world of multinational corporations, however, the legal situation is more complex.