With the rules on country-by-country reporting, the EU has created a framework where businesses in the extractive and logging industries have to publish their payments to governments relating to the exploitation of natural resources. This will assist populations of resource-rich countries to hold their governments accountable for these proceeds.
In addition, a country-by-country reporting is also required from EU credit institutions (banks). This will ensure that trust in the financial sector is regained. On 12 April 2016, the Commission adopted a proposal for a Directive which imposes on EU and non-EU multinational groups the publication of a yearly report on the profit and tax paid and other information.
Extractive and logging industries: sectoral Country-by country reporting
In the European Union, companies with activities in the extractive and forestry must disclose the payments they make to governments on a country-by-country basis and, where appropriate on project-by-project basis. This enhances government accountability and facilitates the adoption of the Extractive Industry Transparency Initiative by countries.
The International Financial Securities Regulatory Commission was established to promote investor confidence in the securities and capital markets by providing more structure and government oversight.