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And the ultra lol is that US citizens can end up paying both US tax AND local taxes in some circumstances.
If it's to stop money hiding rich ones, they are probably smarter than this. They can pay for the experts to avoid this.
(but the US at least attempts to fight this, see also the whole Apple kerfuffle in ROI, treasury is waiting for money to go onshore so they can tax Apple, Apple no want to pay and keeps money offshore but they will have to bring it one at some point, very slow popcorn popping)
JWestland-
And the ultra lol is that US citizens can end up paying both US tax AND local taxes in some circumstances.
US citizens have to pay US tax on their earnings wherever they are in the world but they get 1-for-1 credit for any local tax paid. So if your local tax bill is less than the US tax bill you owe the rest to the US. If your local tax bill is the same or more than the US tax bill then you don't pay anything to the US. Even the US doesn't do double taxation.
(I should really look into the tax I paid when I worked in the US, I'm probably due some of it back but it was a long time ago...)
(but the US at least attempts to fight this, see also the whole Apple kerfuffle in ROI, treasury is waiting for money to go onshore so they can tax Apple, Apple no want to pay and keeps money offshore but they will have to bring it one at some point, very slow popcorn popping)
Apple will never bring it onshore in the ROI as long as the overriding EU tax rules make it not worth it. If anything, Apple (and many many other corps) are waiting for another reduced rate US tax amnesty so they can get it into the US although they don't really need to; they can do all of their R&D and M&A on loaned money with the offshore stuff as guarantor and available to bring chunks of it in tax-free to pay the interest on the loans.
Greenbank
All US citizens are required to pay tax to the US treasury, even if they are not resident in the USA. FATCA is a grotesque and over reaching piece of legislation that is supposed to stop US citizens hiding acorns overseas....
Now the penalties to a bank for not compiling with FATCA are obscene and if its a choice of losing your business or being non compliant under FATCA - they will drop you like a stone.
I suspect the reason they think you might be a reportable person is because they don't know your citizenship - if they knew they could allocate you to one of the buckets -reportable or non-reportable but in the absence of any information you are just a regulatory risk to the bank.