AI and tariffs add to complexity of extra-territorial compliance

Extra-territorial rules are an increasing risk for global organizations as governments add regulations governing AI, fraud, tariffs, and sanctions to existing laws on bribery and corruption. Complex supply chains and requirements for global due diligence extend the strong arm of the law ever further.

Such rules once focused on tackling international financial crime and pursuing political differences via sanctions. These laws continue to evolve, but they are being supplemented with rules relating to emerging concerns, including the environment, big tech data, and AI use. Rapidly changing tariff rules are focusing authorities’ attention on customs breaches.

Subsidiaries in the law’s home country are usually in scope, regardless of where their group headquarters is based. But compliance teams should also examine supply chains, since supplier and third-party agent transgressions could impact their own compliance.