Final Rules for Dodd-Frank Sections 1502 and 1504

Media Note
Office of the Spokesperson
Washington, DC
August 23, 2012

The State Department welcomes the approval by the Securities and Exchange Commission of final rules implementing Sections 1502 and 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Section 1502 supports regional and international efforts to prevent armed groups or abusive state forces in the African Great Lakes region from benefiting from the sale of tin, tantalum, tungsten and gold. We urge all governments in the region not to provide support to armed groups or to allow indirect support from their territory. We continue to urge companies to undertake due diligence measures to ensure that their supply chains do not contribute to conflict or human rights abuse in the Democratic Republic of the Congo or the broader African Great Lakes region.

Section 1504, the Cardin-Lugar rule, sets a new standard for transparency in the extractive industries. Under the rules issued by the SEC, oil, natural gas, and mining companies who are required to file annual reports with the SEC will have to disclose certain payments they make to governments for resource development on a project-by-project basis. We look forward to working through our Embassies around the world to disseminate information about the new rules and to encourage other governments and regional organizations to adopt similar transparency standards.

PRN: 2012/1342