Probably because the regulations imposed on American people are far stricter than in the jurisdiction of actual residence. The article mentioned FATCA, which is

Probably because the regulations imposed on American people are far stricter than in the jurisdiction of actual residence. The article mentioned FATCA, which is a great example. As a side note, whenever I opened an account with financial institutions, I have to deal with FATCA paperwork that asked me to confirm that I'm not US citizen every time. It barely makes sense as I was born a Thai citizen and never renounce it, yet I have to complete the FATCA declaration. I couldn't imagine what will happen if someone declared that they are subject to FATCA (at best, probably red tapes, or at worst, being kicked out of their service).