On 18 March 2010 the US enacted the Foreign Account Tax Compliance Provisions known as FATCA. FATCA requires financial institutions outside the US to report information on US account holders directly to the US tax authorities. If financial institutions fail to report the required information then 30% US tax would be withheld on all US payments to them. The governments of France, Germany, Italy, Spain and the United Kingdom (the G5) approached the US setting out the concerns of their financial institutions regarding the operation of FATCA and specifically how, due to legal constraints, they would not be able to deliver the information in the manner designed by the US legislation. On 8 February 2012, the G5 and the US issued a Joint Statement setting out agreement to explore an intergovernmental approach to implementing FATCA. Following further negotiations, on 26 July 2012 the G5 and US issued a further Joint Statement announcing the publication of the «Model Intergovernmental Agreement to Improve Tax Compliance and to Implement FATCA» (the Model IGA). Since then, Model IGA is becoming the legal way through which FATCA is going to be implemented in the vast majority of developed and emergent countries.