Banks are run by people and they are private businesses. Humans don't follow laws like computers follow instruction, we are flawed creatures. Businesses will mitigate risks wherever possible, and refuse to work with customers who carry added risk all the time.
While in theory this shouldn't be causing people trouble and preventing people from getting locked out of the banking system or forcing them into unfair agreements, in reality, it is.
It turns out government regulation has unintended consequences. Just because it's "wrong" for them to interpret the regulation in this way, doesn't change the fact that many many established, legitimate banks are doing it "wrong." Nor does it help the people suffering the consequences to point your finger back at the wording of the regulation and say "Ackshually..."
It really is that simple. This has been part of my job for the past decade+ and it has not been an issue for Americans to open up bank accounts in foreign countries at respectable banks in at least a decade.
If a foreign bank won't open an account for you because you were once American, the problem is that the bank has something to hide. Full stop. End of story.
Banks are run by people and they are private businesses. Humans don't follow laws like computers follow instruction, we are flawed creatures. Businesses will mitigate risks wherever possible, and refuse to work with customers who carry added risk all the time.
While in theory this shouldn't be causing people trouble and preventing people from getting locked out of the banking system or forcing them into unfair agreements, in reality, it is.
It turns out government regulation has unintended consequences. Just because it's "wrong" for them to interpret the regulation in this way, doesn't change the fact that many many established, legitimate banks are doing it "wrong." Nor does it help the people suffering the consequences to point your finger back at the wording of the regulation and say "Ackshually..."