[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR10.735-411]

[Page 65-66]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 10_EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents
 
       Subpart D_Statements of Employment and Financial Interests
 
Sec. 10.735-411  Disqualification procedures.

    (a) Where an employee is prohibited from participating in a matter 
because of a conflicting financial interest that is not exempt under 
Sec. 10.735-205(c) or has not been specifically excepted by the 
appropriate agency official pursuant to Sec. 10.735-217 in advance of 
the employee's participation in the particular matter, the employee 
shall conduct himself or herself in accordance with the following 
provisions:
    (1) The employee shall promptly disclose the financial interest in 
such matter to the employee's immediate superior. The superior will 
thereupon relieve the employee of duty and responsibility in the matter.
    (2) In foreign posts, it may be impossible or highly impracticable 
for an employee, who has a disqualifying financial interest, to assign 
the matter for official action to anyone other than a subordinate. In 
this event, the employee must instruct the subordinate to report fully 
and directly to the immediate superior to whom the employee himself or 
herself would normally report. The employee must concurrently direct 
such subordinate to take such action as may be appropriate in the 
matter, and without thereafter revealing to the disqualified employee in 
any way any aspect of the particular matter.
    (b) Nothing herein precludes the employee from disposing of such 
disqualifying financial interest, thereby wholly eliminating the 
conflict of interest. In some circumstances, where the employee may not 
obtain an exception under Sec. 10.735-217, or may not disqualify 
himself or herself and refer or assign the matter to another employee, 
the performance of duty may even require divestiture.
    (c) Where a supervisor has reason to believe that a subordinate 
employee may have a conflicting financial interest, the supervisor 
should discuss the matter with the employee. If the supervisor finds 
that a conflict of interest

[[Page 66]]

does exist, the supervisor must relieve the subordinate employee of duty 
and responsibility in the particular matter.
    (d) The obligation to avoid conflicts of interest is upon each 
employee. It is a continuing obligation calling for alert vigilance.
    (e) Notwithstanding any other provision of this part to the 
contrary, if a employee's holdings rise in value above the amount 
exempted by Sec. 10.735-205(c), then the statutory and regulation 
prohibitions apply in a conflict of interest situation.