In the article Sanctions jiu-jitsu Jess Hoversen explains the history and the character of the US’s use of sanctions.
Amongst others:
When Washington imposes sanctions, it isn’t only barring American citizens from dealing with a target. It also warns foreign companies, in other countries, that they too must cut off the target or risk losing access to the U.S. market and financial system. Any sovereign state would reasonably bristle at that kind of reach into their domestic affairs. But when the meddling state controls the world’s dominant currency, the rest of the world typically chooses to tolerate the meddling albeit with protest and the occasional attempt to fight back.
The same applies to FATCA, even if fundamental rights are being violated.

