SEC. 2. PROHIBITING TRANSACTIONS AND OWNERSHIP OF 
CERTAIN FINANCIAL INSTRUMENTS BY SEN-
IOR FEDERAL EMPLOYEES, THEIR SPOUSES, 
OR DEPENDENT CHILDREN. 
(a) IN GENERAL.—Chapter 13 of title 5, United 
States Code, is amended by adding after subchapter III 
the following: 
‘‘SUBCHAPTER IV—RESTRICTIONS REGARDING 
FINANCIAL INSTRUMENTS 
‘‘§ 13151. Definitions 
‘‘In this subchapter: 
‘‘(1) COVERED FINANCIAL INSTRUMENT.— 
‘‘(A) IN GENERAL.—The term ‘covered fi-
nancial instrument’ means— 
‘‘(i) any investment in— 
‘‘(I) a security (as defined in sec-
tion 3(a) of Securities Exchange Act 
of 1934 (15 U.S.C. 78c(a))); 
‘‘(II) a security future (as de-
fined in that section); or 
‘‘(III) a commodity (as defined in 
section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a)); and 
‘‘(ii) any economic interest com-
parable to an interest described in clause 
(i) that is acquired through synthetic 
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means, such as the use of a derivative, in-
cluding an option, warrant, or other simi-
lar means. 
‘‘(B) EXCLUSIONS.—The term ‘covered fi-
nancial instrument’ does not include— 
‘‘(i) a diversified mutual fund; 
‘‘(ii) a diversified exchange-traded 
fund; 
‘‘(iii) a United States Treasury bill, 
note, or bond; or 
‘‘(iv) compensation from the primary 
occupation of a spouse or dependent child 
of a senior Federal employee. 
‘‘(2) QUALIFIED
BLIND
TRUST.—The term 
‘qualified blind trust’ has the meaning given the 
term in section 13104. 
‘‘(3) SENIOR FEDERAL EMPLOYEE.—The term 
‘senior Federal employee’ means any individual occu-
pying a Senior Executive Service position (as that 
term is defined in section 3132). 
‘‘(4) SUPERVISING ETHICS OFFICE.—The term 
‘supervising ethics office’ has the meaning given the 
term in section 13101. 
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‘‘§ 13152. Prohibition on certain transactions and 
holdings involving covered financial in-
struments 
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), a senior Federal employee, their spouse, or 
their dependent children may not, during the term of serv-
ice of the employee, hold, purchase, or sell any covered 
financial instrument. 
‘‘(b) EXCEPTIONS.—The prohibition under sub-
section (a) does not apply to— 
‘‘(1) a sale by a senior Federal employee, their 
spouse, or their dependent child that is completed by 
the date that is— 
‘‘(A) for an employee serving on the date 
of enactment of this title, 180 days after that 
date of enactment; and 
‘‘(B) for any employee who commences 
service as an employee after the date of enact-
ment of this title, 180 days after the first date 
of the initial term of service; 
‘‘(2) a covered financial instrument held in a 
qualified blind trust operated on behalf of, or for the 
benefit of, a senior Federal employee, their spouse, 
or their dependent child; or 
‘‘(3) a covered financial instrument exempted 
from coverage under section 208 of title 18 pursuant 
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to section 2640.202 of title 5, Code of Federal Reg-
ulations (or any successor regulation). 
‘‘(c) APPLICATION OF CERTIFICATE OF DIVESTITURE 
PROGRAM.—For purposes of section 1043 of the Internal 
Revenue Code of 1986— 
‘‘(1) this section shall be treated as a Federal 
conflict of interest statute; and 
‘‘(2) any person required to dispose of any 
property by reason of this section shall be treated as 
an eligible person. 
‘‘(d) PENALTIES.— 
‘‘(1) DISGORGEMENT.—A senior Federal em-
ployee, their spouse, or their dependent child shall 
disgorge to the general fund of the Treasury any 
profit from a transaction or holding involving a cov-
ered financial instrument that is conducted in viola-
tion of this section. 
‘‘(2) INCOME TAX.—A loss from a transaction 
or holding involving a covered financial instrument 
that is conducted in violation of this section may not 
be deducted from the amount of income tax owed by 
the applicable senior Federal employee, their spouse, 
or their dependent child. 
‘‘(3) FINES.—A senior Federal employee who 
holds or conducts a transaction involving a covered 
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financial instrument in violation of this section may 
be subject to a civil fine assessed by the supervising 
ethics office under section 13153. 
‘‘§ 13153. Certification of compliance 
‘‘(a) IN GENERAL.—Not less frequently than annu-
ally, each senior Federal employee shall submit to the su-
pervising ethics office a written certification that the em-
ployee, their spouse, or their dependent child has achieved 
compliance with the requirements of this title. 
‘‘(b) PUBLICATION.—The supervising ethics office 
shall publish each certification submitted under subsection 
(a) on a publicly available website. 
‘‘§ 13154. Authority of supervising ethics office 
‘‘(a) IN GENERAL.—The supervising ethics office 
may implement and enforce the requirements of this sub-
chapter, including by— 
‘‘(1) issuing— 
‘‘(A) for applicable senior Federal employ-
ees— 
‘‘(i) rules governing that implementa-
tion; and 
‘‘(ii) 1 or more reasonable extensions 
to achieve compliance with this subchapter, 
if the supervising ethics office determines 
that an employee is making a good faith 
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effort to divest any covered financial in-
struments; and 
‘‘(B) guidance relating to covered financial 
instruments; 
‘‘(2) publishing on the internet certifications 
submitted by senior Federal employees under section 
13153(a); and 
‘‘(3) assessing civil fines against any senior 
Federal employee who is in violation of this sub-
chapter, subject to subsection (b). 
‘‘(b) REQUIREMENTS FOR CIVIL FINES.— 
‘‘(1) AMOUNT.—A fine imposed under this sec-
tion against a senior Federal employee shall be equal 
to the greater of— 
‘‘(A) $1,000, or 
‘‘(B) an amount equal to 10 percent of the 
greatest dollar value of the applicable covered 
financial instrument during any period that 
such instrument was held by the applicable sen-
ior Federal employee or their spouse or depend-
ent child (as the case may be). 
‘‘(2) IN GENERAL.—Before imposing a fine pur-
suant to this section, the supervising ethics office 
shall provide to the applicable senior Federal em-
ployee— 
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