The US House Financial Services Committee yesterday voted to proceed with a bill (H.R. 4519) that would repeal Section 1504 of the Dodd-Frank Act.
The EITI Chair Fredrik Reinfeldt said: "I believe it would be a setback for transparency in the extractive industries if this legislation is adopted and 1504 repealed".
Section 1504 directs the Securities and Exchange Commission (SEC) to issue rules that would require oil, gas, and mining companies listed on US stock exchanges to report the payments they make to US and foreign governments for the commercial development of oil, natural gas or minerals. Since its adoption, similar requirements have been enacted within the EU and in Canada.
The EITI promotes transparency and has become a global standard implemented by 51 countries, with Mexico being our most recent member. The disclosures being made in the EU and in Canada are already enhancing the EITI’s work at the national level to promote greater transparency and accountability.
The rules previously issued by the SEC sought to ensure that the implementation of Dodd Frank 1504 would complement the EITI. For example, the definition of “payment” specifically referred to the EITI. In February 2017, the President of the United States Donald Trump signed into law Congressional action to disapprove the rule submitted by the SEC.