[repolfx]

That's not how jurisdiction works these days.

Look at FATCA. A US law that every financial institution in Europe has to comply with whether they like it or not.

The EU knows it isn't going to invade the USA. Nonetheless, it has explicitly asserted many times that everyone, globally, is expected to comply, regardless of whether they have any EU corporate presence or not. Why do you think they would do that, if they aren't intending to find ways to make it enforceable? And there are certainly many tools available to do that with that aren't military in nature.

[jacobgreenleaf]

FATCA “applies” to foreign corporations because bilateral treaties were signed, and a lot of the agreements were reciprocal.

[repolfx]

No it doesn't. FATCA applies to foreign corporations because otherwise the US financial system will freeze them out, moreover FATCA requires recursive application of this rule, that is part of FATCA compliance involves determining if your counterparties are FATCA compliant and freezing them out. It has nothing to do with bilateral treaties.