[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR10.735-206]

[Page 54-55]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 10--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents
 
 Subpart B--Ethical and Other Conduct and Responsibilities of Employees
 
Sec. 10.735-206  Economic and financial activities of employees abroad.

    (a) Prohibitions in any foreign country. A U.S. citizen employee 
abroad is specifically prohibited from engaging in the activities listed 
below in any foreign country.
    (1) Speculation in currency exchange.
    (2) Transactions at exchange rates differing from local legally 
available rates, unless such transactions are duly authorized in advance 
by the agency.
    (3) Sales to unauthorized persons (whether at cost or for profit) of 
currency acquired at preferential rates through diplomatic or other 
restricted arrangements.
    (4) Transactions which entail the use, without official sanction, of 
the diplomatic pouch.
    (5) Transfers of funds on behalf of blocked nationals, or otherwise 
in violation of U.S. foreign funds and assets control.
    (6) Independent and unsanctioned private transactions which involve 
an employee as an individual in violation of

[[Page 55]]

applicable control regulations of foreign governments.
    (7) Acting as a intermediary in the transfer of private funds from 
persons in one country to persons in another country, including the 
United States.
    (8) Permitting use of one's official title in any private business 
transactions or in advertisements for business purposes.
    (b) Prohibitions in country of assignment. (1) A U.S. citizen 
employee shall not transact or be interested in any business or engage 
for profit in any profession or undertake other gainful employment in 
any country or countries to which the employee is assigned or detailed 
in the employee's own name or through the agency of any other person; 
exceptions may be made with respect to chiefs of mission only in writing 
by the Deputy Under Secretary for Management and for all other State 
employees by the appropriate chief of mission; for AID employees by the 
assistant administrator of the regional bureau or head of the 
nonregional organization, as appropriate; and for ICA employees by the 
Director of Personnel Services, or their designees (see 22 U.S.C. 805).
    (2) A U.S. citizen employee shall not invest in real estate or 
mortgages on properties located in the employee's country of assignment. 
The purchase of a house and land for personal occupancy is not 
considered a violation of this paragraph.
    (3) A U.S. citizen employee shall not invest money in bonds, shares 
or stocks of commercial concerns headquartered in the country of 
assignment or conducting a substantial portion of their business in such 
country. Such investments, if made prior to knowledge of assignment or 
detail to such country or countries, may be retained during such 
assignment or detail when approved in writing by the appropriate 
official named in paragraph (b)(1) of this section. If retention is 
authorized, such stocks, shares, or bonds may not be sold while the 
employee is assigned or detailed to the country or countries, unless the 
agency approved the sale in writing.
    (4) A U.S. citizen employee shall not sell or dispose of personal 
property, including automobiles, at prices producing profits to the 
employee which result primarily from import privileges derived from the 
employee's official status as an employee of the U.S. Government. 
Employees of State and ICA are referred to Foreign Affairs Manual 
Circular 378; for AID see Handbook 23, Attachment 1B.
    (c) Acceptance of employment by members of family abroad. Family 
members of Foreign Service personnel may accept gainful employment in a 
foreign country unless such employment (1) would violate any law of such 
country or of the U.S.; or (2) could damage the interests of the U.S., 
as certified in writing to the family member by the Chief of the U.S. 
Diplomatic Mission in such country. A copy of such certification will be 
sent to the Family Liaison Office (M/FLO), Department of State. Family 
members accepting employment abroad should bear in mind that they may 
not enjoy immunity from judicial process and would be subject to the 
payment to taxes derived from their nondiplomatic employment.
    (d) Business activities of non-U.S. citizen employees. A non-U.S 
citizen employee abroad may engage in outside business activities with 
the prior approval of the head of the overseas establishment on the 
basis of the standards expressed in Sec. 10.735-204(a).