LAWS ACROSS BORDERS

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This article is written by Krina Modi

Table of Contents

ABSTRACT

The laws of countries like India, the United States and the United Kingdom. The legal system as well as appeal system is different. However, the core of the appeal is that you cannot introduce new evidence at the time of appeal. International law is very important in today’s world, where businesses have their impact in different parts of the world. In order for a successful international business, there must be compliance laws in place. Businesses should adhere to compliance laws for their operations to run smoothly and to avoid any risks.

KEYWORDS

International laws, legal systems of various countries, compliance and compliance laws, implications of compliance, treaties and conventions, and appeals.

INTRODUCTION

The world is now getting smaller and accessible. In earlier times, travelling to a different country was considered rare, and only a limited number of people were able to afford travelling to a different country. Now, with advanced modes of travel and advanced technology, people can travel all over the world. You can easily communicate with someone who is miles away from you. The world is getting closer with advanced technology.

As the world is getting closer, businesses are expanding, and many people are working or having their business presence in different parts of the world. With businesses in various countries, you also come across the laws of different countries. Every country has its own unique legal system. The five types of legal systems are-

1) Civil Law,

2) Common Law,

3) Customary Law,

4) Religious Law, and

5) Mixed or Hybrid System of Law.

A lot of countries follow mixed legal systems.

The expansion of businesses in various countries also brings along cross-border legal issues. Understanding and knowing the laws of different countries is becoming important than ever. It is important to gain knowledge of the laws of the different countries and the legal systems of the countries for having a successful business venture in that particular country. With globalization it becomes a necessity to compare and have the knowledge of the laws of various countries.

The UN, WTO, and ICJ are key international bodies that facilitate global cooperation. The United Nations (UN) works to maintain peace, security, and human rights. The World Trade Organization (WTO) manages and promotes international trade rules. The International Court of Justice (ICJ) serves as the principal judicial organ of the UN, settling legal disputes between states and providing advisory opinions on legal matters.

Approximately 150 countries operate under a civil law system, which is the most widespread legal tradition globally, while around 80 countries follow a common law system, largely as a legacy of the British Empire. Many countries, particularly in Europe and Latin America, are strongly influenced by civil law principles and Roman law, while common law is prevalent in former British territories such as the United States, Australia, and India.

LEGAL SYSTEM OF INDIA, THE UNITED STATES, AND THE UNITED KINGDOM

Indian Legal System

India follows a mixed legal system that primarily draws from common law, influenced by British Colonial legacy, but also incorporates elements of civil law, customary law, and religious law. The Constitution of India, enacted in 1950, serves as the supreme law, ensuring the country’s democratic framework and safeguarding citizens’ fundamental rights. Laws are enacted by both the central Parliament and state legislatures, with specific jurisdictional powers divided between them. Indian law also heavily relies on a vast body of statutory law, including its Supreme Constitution, and specific personal laws for different religious communities, creating a system that is different from pure English Law.

The history of Indian law is vast. The major milestones in Indian law include the development of ancient legal concepts, the introduction of common law under the British East India Company and later the British Crown, the codification of laws like the Indian Penal Code, and the establishment of an independent judiciary under India’s 1950 Constitution, which created a democratic republic and enshrined citizen rights.

United States Legal System

The United States also follows the Common law system. However, unlike the Indian legal system, the United States operates with both a federal system and a state court system, each with its own structures and laws. Specific powers are granted to the federal government, and all other powers remain with the states. Federal courts handle cases involving federal laws, the Constitution, and the disputes between the states, whereas each state has its own constitution, government, and structure. Most of the day-to-day matters are handled by state courts.

The United States legal system was brought to the colonies by British settlers and adopted as the foundation for their state legal systems after independence. This common law tradition, based on precedent and past court decisions, was then codified and structured by the U.S. Constitution and the Judiciary Act of 1789, which established the federal court system, including the Supreme Court.

United Kingdom Legal System

The UK legal system is complicated, with different systems for England and Wales, Northern Ireland, and Scotland. Each has its own history and legal traditions. The United Kingdom’s judiciary, legislature, and executive are separate, though the UK has no single written constitution.

As the legal system, the history of the United Kingdom is also complex. England’s common law tradition was born in the Middle Ages from royal justice, and it co-existed with Scotland’s distinct legal system, contributing to the UK’s modern structure. Key developments include the Anglo-Saxon customary law, the Norman Conquest’s impact, the Magna Carta‘s assertion of rights, Parliament’s rise after the Civil War, and the Acts of Union, which preserved Scotland’s separate legal system.

COURT SYSTEMS

INDIA

The Indian court structure is a single, integrated, and three-tiered hierarchy. The highest court in the Indian legal system is the Supreme Court, followed by High Courts at the State level, and finally, subordinate courts or lower courts. The lower courts function under the direct supervision of the higher courts.

	Supreme Court of India
	High Court
	Subordinate Courts
Civil Courts	Criminal Courts	Revenue Courts
District Judge	Session Court	Board of Revenue
Sub-Judge (Family)	Metropolitan/Additional Magistrate (Class I)	Commissioner Collector
Munsif Court	Judicial Magistrate (Class II)	Tehsildar
Small Cause Court	Executive Magistrates	Ass, Tehsildar

THE UNITED STATES OF AMERICA

Unlike the Indian court structure, the US court structure has a dual system. As stated above, the US functions with federal and state laws. The federal system has US District Courts, also known as trial courts, US Courts of Appeals, also known as appellate courts, and the US Supreme Court. State court systems also have trial, appellate, and supreme courts, but handle the vast majority of civil and criminal cases under state law

Rectangle: Rounded Corners: United States Supreme Court

Rectangle: Rounded Corners: U.S. Court of Appeals

UNITED KINGDOM

As the UK has a complex legal jurisdiction, its court system is also slightly different. The court structure for England and Wales is a hierarchy with the Supreme Court at the top, then comes the Court of Appeals, the High Court, and the Crown Court. Below these courts are County Courts and Magistrate Courts handling civil and criminal cases respectively. The Crown Court takes on serious offenses, and the civil cases, with the county courts dealing with lower-level disputes

Structure of the UK Court System [1]

APPEAL PROCESS IN VARIOUS COUNTRIES

INDIA

In India, in order to appeal lower court decisions, aggrieved party requests a higher court to review and overturn a lower court’s decision. The higher court focuses on errors and law procedures and not on any new evidence. The higher court may affirm, reverse, or modify the lower court’s decision.

The appeal process involves various steps, like –

Filing a formal notice with the original court,
Filing a detailed petition
Submit briefs (written arguments) to the appellate court
In some cases, the appellate court may hold oral arguments
A decision is then made by the appellate court to either affirm, reverse or modify the lower court’s decision

THE UNITED STATES

Similarly, in the United States, the appellate court can review only the existing record; no new evidence can be presented. The appeal process involves steps –

Filing “Notice of Appeal” with the trial court (there is a strict deadline here often 30 days for civil cases and 14 days for federal criminal cases, after the judgment is issued)
Submitting briefs outlining legal errors and “trial transcript”
Oral arguments before a panel of judges
The judges then issue a written opinion that may affirm, reverse, or modify the lower court’s decision

UNITED KINGDOM

In the U.K. appeal process varies depending on the decision and type of case. Furthermore, the appeal must be based on proper grounds and not simply disagreeing with the outcome. Grounds such as a legal error by the judge.

In most cases, you must obtain permission to appeal from the lower court or a higher court

Different Types of Cases

Criminal Cases:

Appeals against magistrates’ decisions are heard in the Crown Court. Appeals against a Crown Court conviction or sentence are heard by the Court of Appeal Criminal Division, which may later go to the Supreme Court.

Civil Cases:

Typically, appeals from the County Court or High Court go to the Court of Appeal Civil Division.

Tribunals:

For decisions made by first-instance tribunals (e.g., in immigration, tax, or benefit cases), an appeal usually goes to the Upper Tribunal.

INTERNATIONAL LAW

Private law firms practicing international law often involve international business transactions, drafting contracts, researching international rules and customary law, and representing companies with a global presence in litigation, arbitration, and mediation. International law also encompasses mergers & acquisitions, corporate governance, patents, international arbitration (in cases of international disputes), and intellectual property law.

The Britannica article on international law, written by Malcom Shaw, updated on July 29, 2025, explains[2]:

“According to Bentham’s classic definition, international law is a collection of rules governing relations between states. It is a mark of how far international law has evolved that this original definition omits individuals and international organizations—two of the most dynamic and vital elements of modern international law. Furthermore, it is no longer accurate to view international law as simply a collection of rules; rather, it is a rapidly developing complex of rules and influential—though not directly binding—principles, practices, and assertions coupled with increasingly sophisticated structures and processes. In its broadest sense, international law provides normative guidelines as well as methods, mechanisms, and a common conceptual language to international actors—i.e., primarily sovereign states but also increasingly international organizations and some individuals. The range of subjects and actors directly concerned with international law has widened considerably, moving beyond the classical questions of war, peace, and diplomacy to include human rights, economic and trade issues, space law, and international organizations. Although international law is a legal order and not an ethical one, it has been influenced significantly by ethical principles and concerns, particularly in the sphere of human rights.”

TREATIES AND CONVENTIONS

Treaties and conventions are both formal, legally binding agreements between states or international organizations under international law, with “convention” often used as a specific term for a multilateral, law-making treaty.

Treaties and conventions are governed by international law, as defined by instruments like the Vienna Conventions on the Law of Treaties

KEY TREATIES AND CONVENTIONS

Key treaties and conventions address critical global issues such as human rights (e.g., UDHR, Geneva Conventions, ICCPR), climate change (the Paris Agreement), nuclear proliferation (the NPT), and the international rule of law (UN Charter, Rome Statute). These legally binding agreements between nations establish norms, promote cooperation, and address challenges from international security to environmental protection and economic stability

Since we are discussing international law, it is important to mention various international courts –

The International Court of Justice – The International Court of justice is a principal judicial organ of the United Nations. It mainly handles cases that are legal disputes between two or more states and advisory proceedings

“In 1984 Nicaragua lodged a case against the United States challenging US military actions against Nicaragua, which included the laying of explosive mines in Nicaraguan ports and providing military training and financial the Contras’ armed rebellion against the government. The Court found in favor of Nicaragua. The US administration announced that it would not adhere to the Court’s decision. However, the decision provided considerable support for congressional and legal efforts within the US to change US policy, which were eventually successful. The Court’s decision also played a significant role in providing a legal and political framework for the negotiation and adoption of the Central American Peace Accords, which ended the civil wars in the Central American countries.”[3]

World Trade Organization– The World Trade Organization handles the disputes between WTO members concerning trade-related measures, like import restrictions and subsidies.

“The Brazil-Canada Aircraft Dispute was a landmark case in WTO jurisprudence, focusing on the legality of government subsidies under the Agreement on Subsidies and Countervailing Measures (SCM Agreement). Brazil’s Proex program and Canada’s EDC and TPC programs were found to constitute prohibited export subsidies, providing undue advantages to Embraer and Bombardier, respectively. The WTO ruled that both countries must withdraw or modify their subsidy programs to comply with international trade rules. The prolonged dispute underscored the challenges of enforcing WTO rulings, balancing national industrial policies with global trade obligations, and defining the scope of permissible state aid. The case set important precedents for future subsidy-related disputes, reinforcing the need for transparency and compliance in international trade law.”

“(WTO Cases DS46 and DS70) is a landmark case in international trade law, revolving around the provision of subsidies by the governments of Brazil and Canada to their respective aircraft manufacturers, Embraer and Bombardier. This case highlights the complex interplay between national economic interests, international trade regulations, and the WTO’s role in adjudicating such disputes.”[4]

COMPLIANCE

International Compliance means that you are adhering to laws and rules established in the country you plan to expand your business to. International compliance refers to the process of ensuring that businesses, operations, policies, and practices comply with the legal requirements and regulations of multiple countries. This includes everything from labor laws and tax obligations to data protections and environmental standards.

As per LexisNexis:

“In the course of their business activities, companies must not only observe national compliance legislation; in international transactions, the rules of the other countries involved are also binding. It is advisable for companies to hire a risk and compliance analyst, a compliance officer internally or employ a law firm to ensure regulatory risk and compliance. There are numerous international regulations: we have summarized the most important ones for you.”[5]

Lexis Nexis article on Compliance: Legal Foundations summarized the most important regulations as follows: [6]

The UK Bribery Act imposes penalties for a variety of bribery-related offences. It creates a new corporate offence of failing to prevent bribery: companies can be prosecuted for failing to have adequate anti-bribery procedures in place.
German companies also fall within the jurisdiction of this statutory compliance requirement if they have direct or indirect business contacts in the United Kingdom. The mere fact of a subcontractor or a subsidiary within the supply chain being headquartered in the UK means that the UK Bribery Act applies to the business relationship in question.
Non-compliance can result in fines of an unlimited amount for companies and prison sentences of up to ten years for individuals. However, a company accused of business crime under the UK Bribery Act will be treated more leniently by prosecutors if it can demonstrate that it has incorporated effective due diligence measures into its compliance program in addition to hiring a compliance officer or a law firm to ensure adherence to statutory and regulatory compliance.

The USA’s Foreign Corrupt Practices Act (FCPA) entered into force in 1977. Since 1998 the FCPA also applies to foreign companies in connection with business activities that involve direct or indirect links with the USA.
The Financial Action Task Force on Money Laundering (FATF) is a working group set up to tackle money laundering and terrorism financing internationally. Its risk-based approach is based on the principle that measures to be taken must always be adapted to particular risk classes. This means that customers should be classified on the basis of institute-specific criteria.
Acknowledging FATF, the 3rd EU Money Laundering Directive (Directive 2005/60/EC) calls for risk-based prevention measures to tackle money laundering and terrorism financing. The Directive was published in December 2005; EU Member States were required to transpose it into national law within two years. Eight months late, the provisions came into force in Germany with enactment of the German Anti-Money-Laundering Act and the Act to Improve the Prevention of Money Laundering. The new rules extended the scope of the financial sector to all companies and sectors. The 3rd EU Money Laundering Directive is intended to prevent the origin of money from criminal activities such as corruption or tax evasion being concealed. It therefore requires enhanced due diligence, creates a central point for the reporting of suspected criminal activity and considers terrorism financing as an aspect of the prevention of money laundering.
The 4th EU Money Laundering Directive (Directive (EU) 2015/849) requires EU Member States to maintain a central register containing details of beneficial owners. The data that is collected provides precise information on the beneficial ownership of companies and records its type and extent. The Compliance Directive entered into force in June 2015. As with the 3rd Directive, Member States had two years – that is, until 27 June 2017 to transpose the new rules into national legislation.
The risk-based approach of this Money Laundering Directive requires all partners in a business relationship to be screened to prevent money laundering. Find out more about your responsibilities in our white paper “The 4th EU Money Laundering Directive – Targeting unlawfully obtained gains”.
The 5th EU Money Laundering Directive followed hard on the heels of the 4th. The deadline for transposition of the 4th EU Money Laundering Directive into the national law of EU Member States has already passed and the deadline for transposition of the 5th Directive, which is 10 January 2020, is looming. The 5th EU Money Laundering Directive extends the scope of obligations to tackle money laundering and terrorism financing (for example, to include providers of virtual currencies); other key changes relate to transparency, access to information on beneficial ownership, and lowered thresholds for due diligence on customers. For a summary of the requirements of the Directive and its relevance to companies, see our white paper “Targeting unlawfully obtained gains – How the 5th EU Money Laundering Directive will affect banks and large companies”.
As a result of the amendments to Section 6 of the Act to Improve the Prevention of Money Laundering, providers of financial services have since the start of 2012 been required to check whether domestic contract partners and beneficial owners are classed as politically exposed persons (PEPs).
Under the EU Directive on Combating Terrorism and the German Foreign Trade Act, all companies must verify that their business contacts are not on any sanctions list.
The USA Patriot Act was enacted in response to the attacks of 11 September 2001. It contains wide-ranging provisions to curb money laundering and terrorism financing. Some parts of the US Patriot Act were replaced in 2015 by provisions of the USA Freedom Act.
The ISO 19600 “Compliance management systems – Guidelines” were published by the International Organization for Standardization in December 2014. The guidelines cover the development, implementation and maintenance of a compliance management system for organizations of all sizes and types. ISO 19600 certification enables companies to provide independent evidence that they have implemented a CMS.
ISO 37001 on Anti-Bribery Management Systems was published in 2016 after consultations that lasted some three years. ISO 37001 certification enables organizations of any size and type and in any country to demonstrate their commitment to tackling corruption.
Various circulars from the Federal Financial Supervisory Authority (BaFin) contain advice on interpreting the statutory requirements.

Indian Compliance Laws

The Companies Act, 2013

The Companies Act, 2013 replaced the older 1956 Act. The Companies Act includes regarding how companies are formed, run and managed. The Act provides a legal framework for companies from their creation to their dissolution, ensuring transparency and facilitating business growth.

Information Technology Act, 2000 – India

The technology is so advanced nowadays. The most difficult and the simplest tasks can be accomplished with the assistance of technology. The IT Act, 2000 includes key provisions such as giving legal standing to electronic records and digital signatures, facilitating electronic filing of documents and amending existing laws to accommodate digital transactions.

The IT act is a foundational law for e-commerce and cybercrime in India.

Prevention of Corruption Act

As the name suggests, prevention of corruption is designed to combat bribery and corrupt practices, particularly among public officials. The main goal of this act is to prevent and punish corrupt practices in the public sector.

IMPORTANCE OF COMPLIANCE

We learnt so much about compliance in the above paragraphs, but it is also necessary to know the importance of compliance for companies. In order for businesses to run smoothly, the main key factor is that the company/business acts ethically and responsibly and builds trust with staff, partners, and clients in this competitive market. Compliance is an essential part of businesses to avoid any kind of negative consequences, like legal risks or suffering financial losses

COMPLIANCE CASES

Goldman Sachs has faced numerous compliance cases, most notably the 1MDB scandal, where they were fined billions for bribing foreign officials to win business. The Goldman Sachs Group Inc. (Goldman Sachs or the Company), a global financial institution headquartered in New York, New York, and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay over $1 billion in bribes to Malaysian and Abu Dhabi officials to obtain lucrative business for Goldman Sachs, including its role in underwriting approximately $6.5 billion in three bond deals for 1Malaysia Development Bhd. (1MDB), for which the bank earned hundreds of millions in fees. Goldman Sachs paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere. [7]

In 2012, the Federal Trade Commission filed an administrative complaint against Facebook, alleging that it had disregarded users’ privacy settings when sharing data with third parties. Facebook settled that complaint by consenting to an administrative order entered on the FTC’s docket. The 2012 administrative order directed Facebook to implement a privacy program, including certain consumer disclosures and the employment of an independent auditor.

In 2019, the FTC concluded that Facebook had violated the 2012 order and referred a complaint to the Justice Department. In the agency’s view, Facebook had continued to ignore users’ privacy settings when sharing data. Facebook, the FTC, and the DOJ ultimately reached a new settlement agreement to resolve the complaint. That settlement entailed a $5 billion fine and a series of remedial measures, including data-privacy reforms, reporting obligations, and monitoring. Facebook was also required to hire a third-party “assessor” to review its privacy practices.[8]

On 9 April 2015, Raju and nine others were found guilty of collaborating to inflate the company’s revenue, falsifying accounts and income tax returns, and fabricating invoices, among other findings, and sentenced to seven years imprisonment by Hyderabad court. Kunjumani and his brother were also fined by the court 55 million rupees (US$883,960) each.[9]

Additionally, the famous Nirav Modi scam is a very known case that involved major fraud amounting to approximately ₹12,000 crore (US$1.4 billion) at the Punjab National Bank (PNB). Indian diamond merchant Nirav Modi, along with other partners and bank employees, allegedly used fraudulent letters of undertaking to obtain buyer’s credit. Modi fled India in 2018 before the case was registered and was subsequently arrested in London in 2019, with extradition proceedings for fraud and money laundering ongoing[10]

Compliance fraud has various punishments that includes fines, imprisonment and exclusion from future activities. Each country like USA, India and UK includes these punishments but it varies on the specific regulations violated The severity depends on factors like the type of fraud, the amount of financial loss, and whether the violation involves a specific statute or a pattern of misconduct.

CONCLUSION

The Court systems and laws of each country are different. Handling or conducting business, or even expanding your existing business to a different country, has its own challenges. When companies fail to comply with cross-jurisdictional legal norms, there can be significant risks. Reputations can be damaged, financial penalties can arise, and organizations can become tied up with litigation and legal restrictions. Therefore, adhering to compliance laws, understanding, and studying compliance can assist entrepreneurs and businesses to operate legally, reduce significant financial and operational risks, maintain their reputation, and gain access to new markets.

All businesses must include a dedicated compliance team and also create a basic compliance program. The compliance program should include risk assessment, policies and procedures, training and communication and confidential reporting structures.

Another important aspect of compliance is Environmental, social and governance (ESG) rules.

Environmental: These laws focus on a company’s impact on the environment. Key topics include natural resource usage and impacts, energy consumption, pollution control, waste management, and handling hazardous substances.

Social: Social impact rules are primarily concerned with protecting human rights within a company’s operating sphere. Critical issues include preventing forced labor and human trafficking, ensuring employee welfare, promoting diversity and inclusion, protecting consumers, and fostering community engagement.

Governance: Governance laws regulate corporate behavior and the structures that guide it. This includes board composition and oversight, ethical business practices, anti-bribery and corruption measures, and transparency and accuracy in reporting. [11]

With the development of Artificial Intelligence (AI), electronic and social media it is more important than ever to adhere to compliance laws. The main areas that AI law focuses is consumer protection, data privacy, fairness and non-discrimination, transparency, copyright and accountability.

By combining traditional compliance practices with cutting-edge technologies, organizations can enhance their programs and stay ahead in an increasingly dynamic world. As AI continues to develop, its role in safeguarding corporate integrity will grow, making compliance not only a legal requirement but a critical business differentiator.

A stronger global system is needed for the purpose of managing globalization as economies, technologies, and societies are interconnected. A legal framework to manage the cross-border laws is of utmost importance in today’s times. A robust legal framework will assist in preventing conflicts and will promote stability.

Accountability is a very important aspect in global business, and a stronger global legal system will help in achieving accountability

References

[1] https://www.justcite.com/kb/editorial-policies/terms/uk-court-structure/

[2] https://www.britannica.com/topic/international-law

[3] https://www.unfoldzero.org/wp-content/uploads/ICJ-Success-Stories-1.pdf

[4] Read the case here- https://ijirl.com/wp-content/uploads/2025/02/THE-BRAZIL-CANADA-AIRCRAFT-DISPUTE-WTO-CASES-DS46-AND-DS70.pdf#:~:text=(WTO%20Cases%20DS46%20and%20DS70)%20is%20a,their%20respective%20aircraft%20manufacturers%2C%20Embraer%20and%20Bombardier.

[5] https://www.lexisnexis.com/en-int/glossary/compliance/compliance-law-and-guidelines

[6] https://www.lexisnexis.com/en-int/glossary/compliance/compliance-law-and-guidelines

[7] https://www.justice.gov/archives/opa/pr/goldman-sachs-charged-foreign-bribery-case-and-agrees-pay-over-29-billion

[8] United States v. Facebook, Inc., 136 F.4th 1129

[9] https://mlsu.ac.in/econtents/5678_Satyam.pdf

[10] https://www.business-standard.com/about/what-is-pnb-scam

[11] https://aquent.com/blog/esg-regulation-guide-navigating-the-new-normal#:~:text=Environmental:%20These%20laws%20focus%20on,transparency%20and%20accuracy%20in%20reporting.