To amend section 207 of title 18, United States Code, to prohibit certain former Federal officials from investing in or serving in a managerial role in an investment fund in which a foreign principal owns shares within a certain time period if such investment or managerial role is based on conversations between such former officials and such foreign principal while such former official was employed by the Federal Government, and for other purposes.
The Political Appointee Illicit Dealings Act prohibits certain former federal officials from investing in or managing business entities where they know a foreign government or agent has a substantial financial stake, if that investment decision was based on conversations they had with the foreign entity while employed by the federal government. The ban applies for four years after any communication between the former official and the foreign principal, and covers former officials who held high-level positions requiring security clearances or significant compensation. The law includes exceptions for passive investments in retirement accounts or trusts that the former official does not control, and requires anyone who discovers they have such a conflict to divest or resign from their managerial role within 120 days. Violations are subject to existing penalties under federal law for post-employment conduct restrictions. The measure takes effect 120 days after enactment and aims to prevent corruption and conflicts of interest involving foreign entities.
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