Publication Date:
2014-01-29
Description:
Many companies in the extractive industries will soon be required to disclose details of payments made to governments in countries where they operate. While most public companies are supportive of efforts to reduce corruption, preparing for compliance is expected to pose significant challenges. This article summarizes the transparency requirements that will become regulations in EU member states. It explains which companies will be required to report under the rules and what information needs to be disclosed. It highlights the circumstances of potential exemption from reporting and penalties for non-compliance. It also compares the EU rules to those adopted in the USA in 2012, which were subsequently withdrawn following a court decision in July 2013. However, the main focus of this article is on the challenges that extractive companies are facing in complying with transparency requirements. These challenges relate to the interpretation of the rules and their application to different business circumstances, establishing systems and processes to capture and collate relevant information for prompt and accurate reporting and managing the commercial, legal and political implications of public disclosure.
Print ISSN:
1754-9957
Electronic ISSN:
1754-9965
Topics:
Energy, Environment Protection, Nuclear Power Engineering
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Law
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Economics
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