§ 400.735-7 Financial interest of Bank employee or connected person or entity.

(a) Statutory. Criminal statutes prohibit a Bank employee from participating in any Bank matter in which, to his knowledge, he, his spouse, his minor child, his partner, or any organization in which he is employed or negotiating to be employed has a financial interest (18 U.S.C. 208).

(b) Rules and comment. (1) The law does not specify the minimum financial interest which gives rise to a conflict of interest. If a Bank employee has occasion to act upon a matter in which to his knowledge he (or a person or an organization with whom he is closely connected has any financial interest (whether in the form of securities or otherwise) he shall disqualify himself from acting. However, the statute authorizes a waiver under certain circumstances. If a Bank employee believes that the circumstances warrant the issuance of a waiver, he shall, before proceeding to act, disclose fully such interest to the official responsible for his appointment. He shall then act upon the matter only after he has received a written determination by the appointing official that the financial interest is not so substantial as to be deemed likely to affect the integrity of the services which the Bank may expect from the Bank employee. The power of exemption shall be exercised by the appointing official after consultation with the Ethics Committee.

(2) A Bank employee shall not have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his duties or responsibilities at the Bank.

§ 400.735-8 Confidential information.

(a) Statutory. Criminal statutes prohibit a Bank employee from disclosing, other than as provided by law, business information obtained through his employment (18 U.S.C. 1905).

(b) Rules and comment. (1) A Bank employee shall not make available to anyone outside the Bank information or documents in the possession of the Bank and held by the Bank on a confidential basis.

(2) A Bank employee shall not engage in, directly or indirectly, financial transactions or further his personal interests,

as a result of, or primarily relying upon, information obtained through his employment at the Bank.

(3) A Bank employee shall not make use or give the appearance of making use, or permit others to make use or give the appearance of making use, of official information not made available to the general public for the purpose of furthering a private interest.

(4) As a result of their official duties, Bank employees will frequently have access to business information of a confidential nature. Typically, this might involve expansion plans by companies seeking the Bank's financial assistance. Such information is disclosed for official use within the Bank and is made available for no other purpose than consideration of the loan application or other matters involved. Where such confidential business information might be compromised in responding to outside inquiries from apparently authorized or legitimate sources, such as other Government agencies, staff members should refer these inquiries to the Ethics Committee to determine whether the nature and circumstances of such inquiries justify disclosure of the particular information sought. Such information should be disclosed to part-time employees and consultants of the Bank only to the extent authorized by the officer responsible for the appointment of such part-time employee or consultant. § 400.735-9 Former employees.

(a) Statutory. Criminal stautes prohibit a former Bank employee from representing, at any time, anyone in connection with a matter in which the U.S. Government has an interest and on which he worked at the Bank, or representing anyone personally, within one year after leaving the Bank, in connection with a matter in which the U.S. Government has an interest and which was under his official responsibility during his last year at the Bank (18 U.S.C. 207).

(b) Rules and comment. When former Bank employees or former part-time or unpaid officers or employees of the Bank are acting as representatives of firms or organizations dealing with the Bank, their representation should be disclosed to the Ethics Committee to determine what action may be required with regard to the continued dealings by Bank employees with such representa

tives and no further dealings shall be had with the former employee until such determination shall be made.

§ 400.735-10 Future employment.

Bank regulations restrict a recipient of financial assistance from the Bank in hiring and utilizing a Bank employee. Negotiations by any Bank employee for future employment are to be fully disclosed to the Ethics Committee in those cases where the prospective employer has had more than incidental contact with the Bank or can be expected to seek the Bank's assistance in the future, and no Bank employee shall proceed with such negotiation without a determination by the Ethics Committee that he may thus proceed.

§ 400.735-11 Recommendation of outside services.

A Bank employee shall not indicate to anyone with whom the Bank has dealings any preference among suppliers, attorneys, engineers, or consultants as regards goods, equipment, or services to be provided in connection with any Bank assistance. It is established Bank policy to avoid placing any person or firm in a preferential position with respect to obtaining orders or contracts for materials or services. Bank employees are not to recommend the services of any attorney, engineer, economist or other consultant or adviser to any person or firm in connection with loan applications or other matters which have been or can be expected in the future to be brought before the Bank. It is recognized that borrowers, particularly foreign governments, and firms, may in good faith seek the assistance of the Bank in selecting competent firms or consultants in connection with such matters as engineering surveys which might later form the basis for a loan application. If the interests of the Bank justify some guidance by the Bank itself in these situations, a comprehensive list of qualified firms may be furnished upon determination by the Ethics Committee of the propriety of such action.

§ 400.735-12 Use of Government prop

erty.

A Bank employee shall not, directly or indirectly, use, or allow the use of, Bank property of any kind, including property leased to the Bank, for other than officially approved activities. An employee

A Bank employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation" means one acknowledged by the Bank employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which the Bank determines does not, under the circumstances, reflect adversely on the Bank as his employer. § 400.735-14 Gambling, betting, and lotteries.

A Bank employee shall not participate, while on Bank-owned or leased property, or while on duty for the Bank, in any gambling activity including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket.

§ 400.735-15 General conduct prejudicial to the Bank.

A Bank employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Bank. A Bank employee shall avoid any action, whether or not specifically prohibited in this Subpart A, which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person;

(c) Impeding Bank efficiency or economy;

(d) Losing complete independence or impartiality;

(e) Making a Bank decision outside official channels; or

(f) Affecting adversely the confidence of the public in the integrity of the Bank. § 400.735-16 Courtesy.

A Bank employee shall conduct himself in a manner that will assure effective accomplishment of his responsibilities and must observe the requirements of courtesy, consideration, and promptness in dealing with those seeking the Bank's assistance.

§ 400.735-17 Miscellaneous statutory provisions.

Attention of each Bank employee is directed to the following statutory provisions:

(a) The prohibition against a Bank employee participating in any manner upon the deliberation or determination of any matter affecting his personal interests or the interests of any corporation, partnership, or association in which he is directly or indirectly interested (12 U.S.C. 635a(e)).

(b) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12, the "Code of Ethics for Government Service".

(c) Chapter 11 of Title 18, United States Code, relating to bribery, graft, and conflicts of interest.

(d) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(e) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

(f) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(g) The prohibitions against the disclosure of classified information (18 U.S.C. 798; 50 U.S.C. 783).

(h) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(i) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)).

(j) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

(k) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C, 1917).

(1) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(m) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(n) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(0) The prohibitions against:

(1) Embezzlement of Government money or property (18 U.S.C. 641);

(2) Failing to account for public money (18 U.S.C. 643); and

(3) Embezzlement of the money or property of another person in the posses

sion of an employee by reason of his employment (18 U.S.C. 654).

(p) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(q) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608.

(r) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219). [31 F.R. 3048, Feb. 22, 1966, as amended at 32 FR. 13758, Oct. 3, 1967]

Subpart B-Implementation

The Administrative Officer will cause all Bank employees to read Subparts A through C of this part at the time of their employment and at least annually thereafter. All Bank employees shall have read Subparts A through C of this part not later than 60 days after the effective date of issuance.

§ 400.735-21 Ethics Committee.

A committee on ethics (the Ethics Committee) is hereby established. It shall consist of the First Vice President, as Chairman, the Assistant General Counsel, and the Adiminstrative Officer of the Bank. All notices to the Ethics Committee shall be given to its Chairman and only its Chairman shall speak for the Ethics Committee. The Ethics Committee is authorized and directed to take the actions referred to in §§ 400.735-5(b) (1), 400.735-6(b) (4), 400.7357(b) (1), 400.735-8(b) (4), 400.735-9(b), 400.735-10, 400.735-11, and 400.73530(c). The Ethics Committee shall have the duty to assure that no appointment of a regular Bank employee is made if such appointment would create a conflict under $400.735-6 (b) (1) or $400.7357(b)(2).

[32 F.R. 13758, Oct. 3, 1967]

§ 400.735-22 Counselor on Ethics.

The Chairman of the Ethics Committee shall serve as Counselor to the Bank and as the Bank's designee to the Civil Service Commission on matters covered by Subparts A through C of this part. He shall also coordinate the work of the Deputy Counselor on Ethics mentioned in § 400.735-23.

§ 400.735-23 Deputy Counselor on Ethics.

The General Counsel shall be Deputy Counselor on Ethics and shall be available to give authoritative advice and guidance to each Bank employee on matters covered by Subparts A through C of this part, including any matter arising under § 400.735–7(b) (2).

§ 400.735-24 Availability of counseling.

Each Bank employee may consult the General Counsel at any time for counseling on problems raised by Subparts A through C of this part.

§ 400.735-25 Complaints.

Complaints from any source concerning the subject matter of Subparts A through C of this part, whether emanating from within or outside the Bank, are to be submitted to the Chairman of the Ethics Committee.

§ 400.735-26 Disciplinary and other remedial action.

If a Bank employee violates any of the provisions of Subparts A through C of this part he shall be subject to the penalties provided by law, and to such additional disciplinary and other remedial action, including, among others, dismissal, suspension, or reduction in rank, as is appropriate. Disciplinary and other remedial action shall be effected in accordance with any applicable laws, Executive orders, and regulations.

Subpart C-Special Categories of Bank Employees

§ 400.735-30 Bank employees who are required to submit statements of employment and financial interests.

(a) Statements of employment and filnancial interests shall be submitted by the following Bank employees:

(1) Every Bank employee paid at a level of the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code, but not including the Bank employees who are subject to section 401(a) of Executive Order 11222, May 8, 1965; and

(2) Those Bank employees in grades GS-13 and above under section 5332 of title 5, United States Code, who occupy positions the basic duties and responsibilities of which require the incumbent to be responsible for making a Bank decision or taking Bank action where the

decision or action has an economic impact on the interests of any non-Federal enterprise.

(b) The time and manner of submission of statements, and the procedures with respect thereto, are specified in Subpart E of this part.

(c) Any Bank employee who considers that his position has been improperly included among those requiring the submission of statements of employment and financial interests may submit the matter for review by the Ethics Committee created pursuant to § 400.735-21 of Subpart B of this part, or in accordance with the Bank's established procedures governing grievances and complaints as prescribed in Staff Memorandum No. 12 dated January 29, 1960.

[31 F.R. 3048, Feb. 22, 1966, as amended at 32 F.R. 13758, Oct. 3, 1967]

§ 400.735-31 Bank employees other than regular full-time.

Most of the statutes on employees' conduct are applicable to all directors, officers, and employees of the Bank, whether full-time or part-time, whether employed or retained on a consulting capacity, and whether compensated or not. However, there are special provisions applicable to part-time officers and employees of the Bank with regard to their activities before Government agencies and the prohibition against outside compensation does not apply to officers and employees who serve without pay or to certain officers and employees who serve part time. Administrative actions and rules applicable to other than fulitime officers or employees of the Bank are covered by Subpart D of this part. § 400.735-32 Presidential appointees.

The rules set forth in Subpart A of this part are applicable to all Bank employees who were appointed to their positions by the President of the United States, except that for purposes of the determination by the official responsible for the Bank employee's appointment referred to in § 400.735-7(b)(1), members of the Board of Directors other than the President of the Bank, shall have such determination made by the President of the Bank. In addition, such Bank employees are subject to the provisions of Part IV of Executive Order 11222 of May 8, 1965, relating to submission of statements by Presidential appointees and to the requirement that they not receive compensation or anything of monetary

value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Bank, or which draws substantially on official data or ideas which have not become part of the body of public information. Subpart D-Procedures Applicable to Other Than Regular Full-Time Bank Employees and Certain Related Standards of Conduct

§ 400.735-40 Procedures governing appointment and utilization.

Pursuant to Executive Order 11222, dated May 8, 1965, and Part 735 of Civil Service Commission regulations (5 CFR Part 735), this section sets forth the procedures which shall be observed in appointing and utilizing advisors, consultants, and part-time employees.

(a) No private person shall be requested to appear before the Bank to give advice, comment or service to the Bank except upon initiative of the Bank.

(b) Whenever a private person is requested to appear before the Bank to give advice, comment, or service to the Bank, it shall be determined whether he will appear on his own behalf or in a representative capacity for some party outside the U.S. Government or whether his appearance is under circumstances making him an officer or employee of the Bank.

(c) If he is to appear other than as an officer or employee of the Bank, he shall be caused to read the "Standards of Conduct for Persons Appearing before the Bank other than as Officers or Employees of the Bank" (§ 400.735-41).

(d) If he is to appear under circumstances making him an officer or employee of the Bank, he shall, prior to appointment, make disclosure, to the extent and in accordance with procedures specified by the Chairman of the Ethics Committee, of his private employment and financial interests. Such disclosure shall show, at least, all other employment (including the names of all corporations, companies, firms, State, or local government organizations, research organizations and educational or other institutions in which the prospective officer or employee is serving as employee, officer, member, owner, director, trustee, advisor or consultant) and all financial interests which relate either directly or in

directly to the duties and responsibilities of the prospective officer or employee, but this requirement shall only apply if the salary, on an annual basis, of such prospective officer or employee is equal to or more than the minimum of grade GS-13 under section 5332 of title 5, United States Code, and the position to be filed has basic duties and responsibilities which require the incumbent to be responsible for making a Bank decision or taking Bank action where the decision or action has an economic impact on the interests of any non-Federal enterprise, or if such prospective officer or employee is to be an expert or consultant as defined in Chapter 304 of the Federal Personnel Manual. The Chairman of the Ethics Committee shall inquire as to the duties of the prospective officer or employee and as to confidential information which in the execution of his duties must necessarily be made available to the prospective officer or employee. The Chairman of the Ethics Committee shall determine whether or not the proposed appointment is free from probable conflicts of interest, taking into consideration the likelihood that the appointee may have to act in his official capacity on a matter in which he or someone connected with him has a financial interest, the likelihood that he may have to act in his private capacity with respect to a matter on which he will act in his official capacity or which may be pending before the Bank during the term of his appointment, and the likelihood that the appointee in his official capacity will acquire information which would be significant to him and not otherwise available to him in his private capacity. The Chairman of the Ethics Committee shall consult with the other members of the Ethics Committee on any of the foregoing matters to the extent he deems appropriate.

(e) If the proposed appointment is free from probable conflicts of interest, the candidate shall be given an appointment in writing. This appointment shall not extend for more than 365 days. It shall be determined at the time he is appointed to serve whether or not the appointee is a "special Government employee" for purposes of Public Law 87849. This determination shall be made upon consideration of these factors:

(1) Whether or not he held at any time during the 365 days preceding appointment another appointment for