FATCA is having a real impact on American expats around the world -- and a lot of them are only now discovering what it means.
Beyond basic checking accounts, it's becoming very difficult for US citizens to gain or maintain access to financial services. Banks in other jurisdictions are closing the savings accounts, pensions accounts, etc of US citizens because of the reporting requirements (and risks involved if they fail to comply) inflicted by FATCA.
FATCA requires financial institutions to provide financial information relating to US citizens to the US tax authority (the IRS) (or, if the relevant country has an agreement in place, to the local authority who will then provide the information to the IRS).
If a bank fails to comply - on purpose or otherwise - institutions making payments to that bank are required to apply a withholding tax of 30%. If they do not, they are subject to the same withholding requirement further up the chain, and so on.
In short, lots of Americans have not been filing proper tax returns and now the IRS is going to learn about all their bank accounts, etc and hammer them. Unless they can hide their money. Switzerland used to be the answer, but FATCA and a number of other initiatives mean that is no longer the case.
Some may choose to give up their citizenship. Others may hear about Bitcoin in time.
http://www.theguardian.com/money/2014/sep/24/americans-chased-by-irs-give-up-citizenship-after-being-forced-out-of-bank-accounts
