ONE Campaign Encouraged by SEC’s Issuance of a Proposed Rule for Dodd-Frank 1504

FOR IMMEDIATE RELEASE

MEDIA CONTACT
Jennifer Bell, Bluelight Strategies
[email protected]
202-265-3000

WASHINGTON — The ONE Campaign welcomes the U.S. Securities and Exchange Commission’s (SEC) release today of a proposed rule to implement Section 1504 of the Dodd-Frank Wall Street and Consumer Protection Act of 2010. This proposed rule will implement the part of the law that requires all U.S.-listed oil, gas and mining companies to publicly disclose the payments they make to governments for the extraction of natural resources. While the full rule has yet to be released, based on the statements of the Commission and its staff, ONE believes that this proposal could represent a significant step toward ending corruption, promoting economic growth, protecting investors and strengthening U.S. national security.

Matthew Leffingwell, Director of US Government Relations at the ONE Campaign released the following statement:

Financial secrecy enables corruption that is, at least in part, responsible for some of the gravest challenges of our time, including extreme poverty and terrorism. We are encouraged by the progress that the SEC is making to implement Section 1504 of the Dodd-Frank Wall Street and Consumer Protection Act of 2010. This important rule should help address these challenges, but there is still more work to be done.

We are encouraged by the SEC’s indication that it will continue to demonstrate its leadership on this issue by aligning our laws with the rapidly emerging global standard, recognizing that transparency is a win-win-win: for investors, for governments, and for citizens – especially those living in the world’s poorest countries.

To provide the level of transparency necessary to root out the corruption that keeps poor countries trapped in poverty and fosters political instability, the SEC must ensure that its final rule requires detailed project-by-project reporting with no exemptions. We will work to ensure that the SEC doesn’t create any exemptions that would undermine the efficiency of this law.

Investors, companies and citizens have all appealed to the SEC, noting that transparency is good for business and communities. As it works on its final rule, the SEC should listen to those voices rather than to those wishing to cling to the status quo of secrecy and business-as-usual.

We are thankful for the leadership of some companies, like the world’s largest mining company BHP Billiton, Kosmos Energy, Tullow Oil and StatOil, who recognize that transparency is good for business and already publish their payments to governments. We hope their example will inspire others to follow suit, and help to convince the SEC that this is the best path forward.

“Over the past two years, the European Union, Canada and Norway have passed similar laws that require extractive companies to publish their payments to governments. The U.S. needs to do its part and fulfill its requirements under Dodd-Frank.

ONE will provide further reaction once the full proposed rule is published by the SEC.