These requirements apply to all American citizens, not only wealthy people. I lived in Switzerland briefly and had a bank account there; it was closed (along with all other Americans' accounts) because the bank didn't want the burden of reporting.
As gutitout said, "the US goes so far that foreign banks would rather not deal with you at all." And the worst burden of that falls on average citizens living abroad, not on the wealthy who just move their money to a different haven.
> These requirements apply to all American citizens, not only wealthy people. I lived in Switzerland briefly and had a bank account there; it was closed (along with all other Americans' accounts) because the bank didn't want the burden of reporting.
Yup, can confirm - a large majority of smaller banks will not open a bank account for US citizens in Switzerland. The few larger ones will, but there's extra paperwork you need to fill out.
Sorry about the confusion. I meant all Americans' accounts with that bank, not all Americans' accounts in the entire country.
That link also confirms what I said: it clearly says the reporting requirements apply to all "U.S. citizens and residents with...any foreign financial accounts", and it provides a list of some banks that still accept American account holders because many do not.
Not sure why you're getting downvoted. I have a close friend who moved back to Taiwan from the US and many banks have told her exactly this. She want to renounce her US citizenship because it is making life hard for her.
(Note: I am pro all the reporting requirements. But the parent comment is factually true.)
As gutitout said, "the US goes so far that foreign banks would rather not deal with you at all." And the worst burden of that falls on average citizens living abroad, not on the wealthy who just move their money to a different haven.