[Graybeard58]

If banks refuse to comply, they could face a punitive 30 percent withholding tax on all payments from the US.

What payments are they talking about?

[Cardhu]

I think they may be talking about withholding 30% of money transfer deposits from American citizens, as a 30% withholding is standardard income tax withholding for non-American citizens unless arrangements are are made with certain countries.