US Not the Only Prosecutors in the World

According to the Washington Post here a German prosecutor is investigating possible money laundering conduct related to the transfer of funds by a contractor who may owe money resulting from a civil action regarding possible defrauding of the U.S.-led Coalition Provisional Authority in Iraq.

The United States has used "objective territoriality" as a basis for prosecuting conduct occurring outside the United States that has an effect on this country. But will those in this country find it acceptable if another country uses a similar principle to prosecute US citizens?  Does it make a difference that the conduct is alleged to have occurred outside this country?

(esp)