The European Commission has approved a directive introducing new disclosure requirements for the entities in the extractive and lodging industries. Affected entities will be required to report annually payments made to governments, and to make this information available to the public. A ‘government’ is defined as ‘any national, regional or local authority of a member state or of a third country’; this includes departments or agencies controlled by that authority.
The objective of the new directive is to promote the adoption of the Extractive Industries Transparency Initiative (EITI) and increase transparency on payments made to governments. The mandatory disclosure requirements are similar to those introduced in the US by the Dodd-Frank Act.