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President Trump signed a bill to roll back a Dodd-Frank banking reform disclosure requirement that demanded that resource exploration and extraction companies disclose any payments that they might make to foreign governments, the U.S. federal government or other entities in their exploration activities.
Rule 13q-1 adopted by the SEC, would have implemented the resource extraction issuer payment disclosure provisions of Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the SEC rule, a public company that qualified as a “resource extraction issuer” would have been required to publicly disclose in an annual report on Form SD of its tax return information relating to any single “payment” or series of related “payments” made by the issuer, its subsidiaries or controlled entities of $100,000 or more during the fiscal year covered by the Form SD to a “foreign government” or the U.S. Federal government for the “commercial development of oil, natural gas, or minerals” on a “project”-by-“project” basis.
House Speaker Paul D. Ryan (R-Wis.), who attended the signing Tuesday, said it would be “the first of many Congressional Review Act bills to be signed into law by President Trump.” He said they would “provide relief for Americans hurt by regulations rushed through at the last minute by the Obama administration.”
Supporters of the SEC regulation say it would have provided greater transparency. The SEC said Congress had sought transparency “to help combat global corruption and empower citizens of resource-rich countries to hold their governments accountable.”
The regulation, which never went into effect, was drafted at the direction of the Obama administration in response to directions in the Dodd-Frank financial reform legislation. The directive was in an amendment backed by Sen. Benjamin L. Cardin (D-Md.) and then-Sen. Richard G. Lugar (R-Ind.).
Foes of the regulation, led by the U.S. Chamber of Commerce and the American Petroleum Institute, said the rule would put natural resource companies at a competitive disadvantage to foreign firms by disclosing too much of their contract terms.