what do you mean 'if a password site is located in another country'? Are you talking about the site itself, the server which hosts the pages?
The law in most of these matters cares where the person resides not where the server is. So running password sites, UCE spam, kp, on foreign servers does nothing to protect you. If it's against the law where you physically reside is what matters.
as far as password sites legality, pretty low risk. when was the last time you saw one sued or shut down?
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