By Dan Waltz
1Congress recently amended the Iran Sanctions Act, expanding dramatically the activities of non-U.S. companies that can expose them to U.S. sanctions.
2The U.S. government has added dozens of Iranian companies to the U.S. "blacklist."
3Previously, the ISA focused on oil companies that made large investments in the Iranian petroleum industry.
4 Now, foreign banks that engage in sanctionable conduct risk being cut off from the U.S. banking system and can be subject to massive penalties.
5 For banks, sanctionable conduct includes continuing to do business with persons "blacklisted" by the U.S.
6 Selling refined petroleum to Iran, or financing, shipping or insuring those sales, is now a "no-no."
7 So is supporting the development of Iran's oil refining capacity.
8 Companies that contract with the U.S. government must certify that they haven't engaged in conduct that could expose them to sanctions.
9 The parent company of a sanctioned company can also be subject to sanctions.
10 Ignorance is no defense. Penalties can apply if you should have known you violated the sanctions.

FROM THE EDITOR

The World Is Still Round

For decades, the world has been shrinking, becoming, in Tom Friedman's phrase, flatter. Empowered by technology, free-trade agreements and the need to serve larger markets, all types of entities—corporations, service organizations, academic institutions—have extended their operations across oceans, over mountains, across borders.

However, while some critics worry about homogenization, about the eradication of regional and national differences, as this issue of Capital Thinking discovers, the differences are still more than clear. If you look. And you must look.

Commenting, for example, on the difficulties some companies have had importing wind-energy equipment from Asia, Patton Boggs partner Hwan Kim notes, "It's all about...not assuming that things are done the same way there as they are here." In the cover story, Patton Boggs Of Counsel Graham Wisner reinforces that point. Discussing Sri Lanka, he says, "While there is a thrilling opportunity at hand to literally rebuild a society long brutalized by war and fear, the U.S. must understand Sri Lanka's interest in self-determination .... Sri Lanka is determined to heal its wounds on its own terms." And it's not just countries like Sri Lanka and Iraq that are concerned with sovereign issues. So are India, Korea, Ecuador, and others.

And this concern extends to all manner of doing business. Take corruption. As our second feature points out, "A decade ago, bribing foreign officials was not only legal in many countries, it was tax deductible." Today 38 countries have signed on to the OECD's anti-bribery conventions. On the other hand, as Patton Boggs partner Jay Darden points out, that type of cooperation levels the playing field. Which might make it a flatter world after all.

- MIKE WINKLEMAN, Editorial Director

FEATURE STORY

Corruption, Interrupted

The enforcement of anticorruption laws has become a top federal priority, enhanced by new incentives for whistleblowers. To avoid fines—and jail time—guidelines are important. But they're not enough.

COVER STORY

In Defense of the Realm

Whether you're doing business with foreign economies that are established, emerging or exotic, don't trip over the intersections of independence and interdependence. A close look at five nations.

[Currency]

Impediments to importing. Restoring faith in Dubai. Is the United States unprepared for the future? Can medical device manufacturers get an exemption from the new excise tax?

[Capital Thoughts]

Tim McKnight explains the emergence and imminent danger of "cyber competition." Kenneth Reisenfeld offers three ways to protect overseas investments. Ananda Chakrabarty examines the impact of a key decision on patent law.

[Q&A: Chul Chung]

Chief Economist for the Korea International Trade Association Chul Chung talks about trade issues, bilateral relations, and why, in his view, the United States-Korea Free Trade Agreement must pass.