According to the latest data (pdf) from Swift, more than 40% of global transactions on its platforms are denominated in dollars. Since the bulk of dollar transactions are cleared through American banks, the US can argue that those transactions pass through US soil, thereby giving the US legal jurisdiction over them. That means the US has outsize control over the machinery of international transactions—or, as the Economist put it, “America is uniquely well positioned to use financial warfare in the service of foreign policy.”
What mechanisms or international laws give the U.S. the power to extend its jurisdiction beyond its border as long as the criminals use SWIFT? Is this possible because other Western countries doesn't want to do anything against the U.S. or is there some kind of laws or mechanisms that justify the U.S. in doing so?