Yes, theoretically. Practically though when one applies to open an account they will be asked "do you have or have you ever had a US address or phone number? Have you ever had a greencard? Have you ever had SSN? Were you a subject to US taxation?" and single YES would lead to rejection. For banks which make a few bucks per year per customer dealing with anyone who remotely could be a subject to FATCA is just not worth it.

No, not theoretically.

FATCA does not apply once you are no longer a US taxpayer. Moreover, the FATCA regime has been copied by so many other countries (including the EU) that there is now a global version of FATCA called CRS (and the procedural system for implementing CRS is known as AEOI).

FATCA is now considered the least burdensome implementation of CRS, which has been implemented by all OECD countries, China, India, and Brazil.

If a bank is turning you down because you answered "YES" to the FATCA question, the problem isn't FATCA. The bank is trying to avoid an audit and it's a huge red flag not to do business with them.

I'm sorry, it's not that simple.

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.

The fact that some countries started mimicking FATCA does not make it less idiotically counterproductive and stupidly wasteful. Not to mention it undermining international law and making this world less stable of course.