Will Dodd-Frank Help Fight Corruption In Oil, Gas, Minerals Industries?
Resource extraction companies headline the latest industry facing new regulatory requirements per the recent ruling in favor of Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Oil, gas and mining companies listed on the New York Stock Exchange now must publish payments they make to governments they do business with in regards to the acquisition of their respective resources.
The regulatory law states that any transactions related to the commercial development, exploration, extraction, processing and export of the natural resources cited must be reported.
Information such as the total amount of payments made for each project, the currency used to make payments, and the financial period in which the payments are made must be included in company reports, according to Transparency International. The organization also notes that many countries with abundant natural resources are “home to some of the world’s poorest communities,” and suggests Section 1504 could help fight corruption in such areas.