FATCA- Will it hurt to be US citizen and retire in Canada?

[NewCanadian]

Just came across a link below on implications of proprosed "Foreign Account Tax Compliance Act- FATCA" coming into effect from Jan 2013.

http://www.capdale.com/files/4178_FATCA%20Article.pdf

Currently FBAR does not interfere with daily life if you are US person and residing abroad since the onus is on the individual to report FBAR.

FATCA moves the onus from individual to the financial institution. The institution has to either comply with IRS on a yearly basis information or face penalty of 30 % withholding tax on all US income.

Under Patriot act, already some US institutions are closing US accounts with a foreign address. With FATCA, foreign banks may refuse opening new local bank accounts to US person or even close existing accounts to avoid reporting costs.

Although there is intense lobbying going around to scope of FATCA and possible revisions, it may be worth while getting views from the contributors to this forum.