The Queen is expected to use today’s speech to outline ground-breaking reforms which will force companies to declare who really owns and controls them, in a move strongly welcomed by Global Witness. The campaign group has shown for many years how the use of anonymous companies facilitates a host of crimes including corruption, tax-evasion and money-laundering.
Best known as the ‘conflict minerals provision,’ but Section 1502 of the Dodd Frank Act is a law that requires US-listed companies that use four minerals—tantalum, tin, tungsten and gold—in their products to determine whether their mineral purchases inadvertently fund armed groups in the DRC or surrounding countries.
But misinformation around the provision prevails. On the day that the companies submit their first reports, Global Witness separates the facts from the fiction.
Myth: Section 1502 is too expensive for companies
The first set of company reports submitted under a landmark U.S. law that aims to stop the minerals trade fuelling violence in eastern Democratic Republic of Congo (DRC) fall short of the mark, warns Global Witness.