Taiwan is expecting to finalize a FATCA agreement with the US by end of June 2014. The FATCA Act requires the IRS to gain information about accounts of US citizens and residents with foreign financial institutions. To ensure that this can be done the US is signing intergovernmental agreements with foreign countries that will then allow the information to be exchanged. The FFI in Taiwan would need to obtain the consent of the account holder to exchange the information with the IRS. There had been a concern that banks in Taiwan would have problems with complying with FATCA in the absence of an intergovernmental agreement with the US, so it is important for Taiwan and the US to conclude the agreement before the end of June. After the signing of the agreement the FFIs will still have to put in place the appropriate procedures to apply the FATCA rules.