The Securities and Exchange Commission (SEC) has adopted a final rule under the Securities Exchange Act of 1934 to improve transparency in the extraction industry. This rule requires companies involved in the extraction of oil, natural gas, or minerals to report payments made to foreign governments or the U.S. federal government for resource development. Companies must include details about the type and amount of payments, and this information must be presented publicly in a specific electronic format. The rule aims to deter corruption and promote accountability, although some exemptions and delayed reporting options are available to reduce the compliance burden on smaller companies.
Simple Explanation
The government wants companies finding oil, gas, or minerals to tell everyone how much money they give to countries or the U.S., so people know what’s happening and are less likely to hide things.