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The way I understand things work is as follows: you apply for an FAA license based on your foreign ICAO license. In order to validate your license, the FAA will normally get in touch with your local CAA to check that it's real.
However, apparently both the UK and Australia have privacy laws that forbid their CAA from releasing this information to foreign authorities. That's why the process works a bit differently. You need to contact the CASA directly, and order them to write a verification letter on your behalf. This letter is then forwarded to the FAA, together with the form that you need to fill in.
Now the only thing that's a bit unclear in this process is whether the CASA will forward the form directly to the FAA, or to you - and apparently you can let the whole process be handled by e-mail. Somehow the latter gives me a feeling that it's very easy to tamper with the process.
It's all a bit over the top, really, since the US requires the release of much more information about you something like 24 hours before you fly their way. This was in clear violation of EU rules about privacy but when the US threatened to simply cancel all flights to the US if EU countries did not comply, or hold all tourists at the airport for four hours or more while checks were being carried out, the airlines, governments, consumer organizations and privacy advocates quickly caved in.
Edited to add: I found the following document on the CASA website. Look at para 8.3.
http://www.casa.gov.au/manuals/regul...l/010r0801.pdf