Sounds like Deadwood, that outlaw mining town of the 1800s officially owned by American Indians.
“Since the handover of sovereignty to Iraqis, many of the facilities in the Green Zone have been turned over to the new Iraqi government. It is still a base for western private military contractors, and home to the U.S., British and Australian embassies. The permanent U.S. embassy is located in the southern Green Zone, overlooking the Tigris River.”
“On 1 January 2009, full control of the Green Zone was handed back to Iraqi security forces.[10]”
http://en.wikipedia.org/wiki/Green_zone
There are some obvious parallels, yes. The result is that laws don't apply unless the people in power happen to find them convenient.