Section 1504 of the 2010 Dodd-Frank Act directs the Securities and Exchange Commission (SEC) to issue rules that would require extractive companies listed on U.S. stock exchanges to publicly report the payments they make to governments for the commercial development of oil, natural gas, or minerals. The regulations are intended to shine a light on an industry that is notoriously opaque and vulnerable to corruption, expose and deter corrupt deals, give investors better information to assess risk, and provide much-needed transparency for citizens of resource-rich countries to monitor revenue flows from projects in their backyards and demand accountable management of natural resource wealth.
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