> This is illegal from a US perspective

Yes. It also need to be enforceable.

Take GDPR. If say a US website serving pages to the EU does not follow it at all, or even does everything the other way (collection, ...) the only thing the EU can do is wave their finger. Except if the site has options in the EU.

If you cannot enforce a law it is either dead, or you resort to bully actions like the US does (an example was Trump going account Iran the first time agent an agreement was signed, and telling the EU companies that if they continue to do business with Iran, their US subsidiaries will be fined)

> What I just described is precisely and entirely why those questions exist.

This is simply because we are chickens. Hopefully we will get rid of that someday.

No other country has such advantages like the US with the question about citizenship in financial documents. This is a disgrace.

> or you resort to bully actions like the US does

Yes, so your point is? You seem confused.