Personal anecdote: I was the manager of a small investment fund that invested in a YC company that was acquired by an Australian company. As a result we ended up owning some stock in this Australian company. In order to sell this stock and cash out, I had to open up a brokerage account for the fund (which was an LLC) in Australia. Very long story short: it was a freakin' nightmare. It took six months. All to sell some shares in a public company.
FACTA requires an overseas bank to identify US account holders and then report their personal and other details to the IRS, including balances and withdrawals.
So now some bank in a foreign country has to not only do due diligence on you and as soon as you say you are a US taxpayer or there are signs you are, it is required to report your account to the IRS, and if it doesn't it's subject to a 30% withholding tax on transfers to it as an institution from the US.
Of course, under the rules, it's up to the bank to be careful, but the local tax authority doesn't care, so often there's a "Don't Ask, Don't Tell" sort of attitude.