James Tillen Quoted in Business Ethics Regarding Dodd-Frank Disclosure Requirement for Resource Extraction Companies

"Obama Highlights Anti-Corruption Measure for Mining and Energy"
Business Ethics
09.25.10James Tillen discusses Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires that publicly-held "resource extraction" companies disclose to the SEC information regarding payments made to any foreign government or the U.S. federal government for the purpose of the commercial development of oil, natural gas, or minerals. "The statistics don’t lie - this industry attracts corruption more than any other," says Tillen. Section 1504 of the Act differs from the FCPA, according to Tillen, by substantially broadening disclosure requirements. Where the FCPA addresses illegal payments and bribes to individuals, the new provision requires disclosure of all payments to governments, including legal payments for taxes, royalties and license fees. "This is going to capture completely legitimate data," Tillen says, and will create a new incentive for energy and mining companies to bolster existing compliance programs. Among likely changes are improved audit mechanisms to capture data related to government payments and increased oversight of third-party representatives and agents, he says.
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