Code of Federal Regulations Title 22. Foreign Relations § 22.1203.735–411 Disqualification procedures

(a) Where an employee is prohibited from participating in a matter because of a conflicting financial interest that is not exempt under § 1203.735–205(c) or has not been specifically excepted by the appropriate agency official pursuant to § 1203.735–217 in advance of the employee's participation in the particular matter, the employee shall conduct himself or herself in accordance with the following provisions:

(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 § 1203.735–217, 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 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 an employee's holdings rise in value above the amount exempted by § 1203.735–205(c), then the statutory and regulation prohibitions apply in a conflict of interest situation.