4 FAM 360
ACCOMMODATION EXCHANGE
(CT:FIN-489; 02-27-2024)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 361 GENERAL
4 FAM 361.1 Scope and Applicability
(CT:FIN-470; 05-19-2021)
This subchapter contains regulations for engaging in foreign
exchange transactions by U.S. disbursing officers (USDO), financial management
officers (FMO), Class B cashiers, and personnel under the jurisdiction of a
chief of mission. Detailed cashier procedures pertaining to accommodation
exchange are contained in Chapter 8 of the Cashier User Guide (CUG).
4 FAM 361.2 Authorities
(CT:FIN-470; 05-19-2021)
Several authorities govern foreign exchange transactions
abroad:
(1) 31 U.S.C. 3342, Check Cashing and Exchange
Transactions;
(2) Treasury Financial Manual Volume I, Part 2 -
Chapter 3200, Foreign Currency Accounting and Reporting; Volume I, Part 4A -
Chapter 3000, Requirements for Scheduling Payments Disbursed by the Bureau of
the Fiscal Service;
(3) Bureau of the Fiscal Service, U.S. Department of
the Treasury, Treasury Reporting Rates of Exchange;
(4) Code of Federal Regulations (CFR), 22 CFR 1203,
Employee Responsibilities and Conduct; 22 CFR 1203.735-206, Economic and
Financial Activities of Employees Abroad; and 22 CFR 136, Personal Property
Disposition at Posts Abroad; and
(5) 22 U.S.C. 4341 through 22 U.S.C. 4343.
4 FAM 361.3 Exceptions
(CT:FIN-470; 05-19-2021)
a. The Bureau of the Comptroller and Global Financial
Services, Office of Financial Policy (CGFS/FPRA/FP) is responsible for
promulgating and publishing policies for accommodation exchange. Post or
bureau officials that seek a change or exception to provisions in 4 FAM 360 should
contact the Director, Officer of Financial Policy, CGFS/FPRA/FP.
b. Department of State policies are based on specific
legislative authorities, regulations, and good management practices. Changes
and exceptions to the 4
FAM 360 policies for accommodation exchange can only be considered for
approval by CGFS/FPRA/FP when they do not violate statutory authorities,
Federal regulations, or other governing authorities. Changes or exceptions to
the regulations may not be approved by the cashier, the cashier’s
supervisor, or other Department bureau or post officials.
4 FAM 361.4 Definitions
(CT:FIN-470; 05-19-2021)
Accommodation exchange transaction:
The authorized exchange of equivalent monetary values in different forms to
authorized persons; for example, foreign currency in exchange for U.S. dollar
check(s).
Chief of mission (COM): Chief
of mission as defined in the Foreign Service Act of 1980, and principal
officers at posts not subject to the administrative jurisdiction of another
post (see 1 FAM
013.2, paragraph a).
Eligible family members (EFM):
As defined in 3
FAM 7121 and 14
FAM 511.3, a sponsoring employee spouse/domestic partner, children who are
unmarried and under 21 years of age or, regardless of age, are incapable of
self-support. The term shall include, in addition to natural offspring,
stepchildren and adopted children and those under legal guardianship of the
employee or the spouse when such children are expected to be under legal
guardianship at least until they reach 21 years of age and when dependent upon
and normally residing with the guardian. For purposes of this subchapter,
eligible family member is the term used in lieu of “dependent” as
referred to in 31 U.S.C. 3342.
Foreign exchange: The system
by which one currency is exchanged for another. This enables international
transactions to take place.
Prevailing rate: The most
favorable rate that would be legally available to the U.S. Government for the
acquisition of foreign currency for its official disbursements and
accommodation exchange transactions.
Reverse accommodation exchange:
The exchange of local currency for U.S. dollars.
Sponsor: As required by 31
U.S.C. 3342, for the purpose of this subchapter, sponsor includes those
categories of personnel and contractors as listed in 4 FAM 362.1-1,
subparagraphs b(1) through b(4).
4 FAM 361.5 Guidelines for
Authorizing Accommodation Exchange
(CT:FIN-470; 05-19-2021)
a. The chief of mission should determine through a
decision memorandum, no less than every five years, whether accommodation
exchange services will be provided at the post. The chief of mission considers
the availability of U.S.-owned foreign currency in the country and satisfactory
local banking and/or automatic teller machine (ATM) facilities for obtaining
the currency before determining if these services by the Class B cashiers
should be authorized. Periodically the Office of Global Disbursing Operations
(CGFS/DO) will request that the post revalidate its rationale for providing
accommodation exchange.
b. The chief of mission takes into consideration the
following when determining if accommodation exchange services by the Class B
cashiers should be authorized:
(1) Individuals are required to obtain their foreign
exchange through regular commercial banking facilities, ATMs, or currency
exchange businesses if such facilities are adequate, secure, and convenient,
and arrangements can be made for the cashing of U.S. Treasury checks and
personal checks. An exception may be made for newly arrived permanent
personnel, and temporary personnel (e.g., employees on TDY or VIP visits) whose
stay is not of such duration to warrant setting up personal banking
arrangements; and
(2) When satisfactory local commercial banking
facilities, ATMs or currency exchange businesses are available for the purchase
of U.S. dollars with foreign currency, personnel should normally be required to
use these facilities.
c. Having the Class B cashier provide accommodation
exchange increases the amount of the cashier advance and creates a greater risk
of the cashier receiving a debit voucher. If post wishes to provide
accommodation exchange on-site and local conditions permit, the post should
pursue having a commercial bank or USDO approved licensed exchange, rather than
the cashier, provide this service.
4 FAM 361.5-1 Authorized
Transactions
(CT:FIN-470; 05-19-2021)
a. When authorized by the chief of mission, the Class B
cashiers can conduct all types of accommodation exchange described in this
subchapter. This accommodation exchange service is not a substitute for
private banking. Transactions that can be handled through an
individual’s private bank or through a private banking service located at
the embassy should not be authorized (e.g., paying employees’ personal
bills through the cashier’s operation, purchase of a privately owned
vehicle, purchase of a residence).
b. The Class B cashiers are authorized to pay out
foreign currency in exchange for U.S. currency and U.S. dollar instruments or
through electronic applications (e.g., pay.gov) approved by the USDO, as well
as in exchange for foreign currency checks drawn by the USDO on official
checking accounts. The Class B cashiers may perform other accommodation
exchange transactions only with special written authorization from the FMO in
conjunction with the USDO, such as conversion from one local currency to a
different local currency (see CUG Chapter 8 for special procedures).
4 FAM 361.5-2 Compliance With
Laws and Regulations
(CT:FIN-470; 05-19-2021)
Whenever accommodation exchange services are established,
the chief of mission or designee takes actions necessary to assure that all
accommodation exchange is performed in full compliance with U.S. Government and
host government laws and regulations; and that all American Government
personnel are familiar with the provisions in 3 FAM 4123 and
22 CFR 1203.735-206, Economic and Financial Activities of Employees Abroad.
The chief of mission has the authority to require all U.S. Government employees
to obtain their foreign currency through U.S. Government facilities when the
chief of mission deems it necessary to assure full compliance.
4 FAM 361.5-3 Cashing Negotiable
Instruments
(CT:FIN-470; 05-19-2021)
a. In consultation with the servicing USDO, the FMO or
the management officer will set a per check or per day limit on the amount of
foreign currency that can be purchased from the Class B cashier. Normally,
this limit will be not more than $1,000, with a minimum check amount of $50.
Exchange is provided if the presenter is eligible for accommodation exchange in
accordance with 4
FAM 362.1-1.
b. Checks may be cashed for other U.S. citizens who
have been previously designated as having official business with the embassy,
such as Congressional and Congressional staff delegations, only when approved
by the chief of mission or other designated official. Designations of such
individuals are normally included in telegrams or other official communications
from the Department, other agencies, or other embassies.
c. Dollar checks or payments received through an
approved electronic application (e.g., pay.gov) must be drawn on banks or
branches located in the United States, made payable through a U.S. bank.
d. Cashiers are authorized to accept first-party
personal checks and first-party travelers checks from persons authorized to
make accommodation exchange, only if the checks are payable to the
“American Embassy,” “Department of State,” or
“U.S. Treasury.” First-party U.S. Treasury checks made out to the
employee or individual authorized accommodation-exchange privileges may be
accepted only if they are endorsed to one of the payees listed above. All
personal checks must be drawn on an account maintained in a U.S. bank.
Cashiers are not authorized to accept for accommodation exchange any Treasury
check that is more than 9 months old, or any personal check that is more than 5
months old. Cashiers should refer individuals with stale-dated Treasury checks
to the cashier supervisor for consultation with the USDO.
e. Cashiers are not authorized to cash any third-party
checks or checks payable to the name of the cashier. Cashiers may only accept
third-party checks for deposit when properly endorsed and specifically
authorized in the post policy required under 4 FAM 399.4-2.
f. Cashiers must immediately endorse all U.S. dollar
checks “for deposit only” upon receipt and follow the USDO’s
instructions to deposit the checks or remit them to the USDO (see CUG Chapter
7).
g. Cashiers must immediately endorse all local currency
checks “for deposit only” and follow the USDO’s instructions
to deposit the checks in the local bank account of the USDO (see CUG Chapter
7).
h. Cashiers should review post policy for accommodation
exchange and refuse accommodation exchange to individuals that do not comply
with the policy on uncollectible checks or ACH debits (see CUG Chapter 8, and 4 FAM 399.4-2).
i. Before cashing checks for accommodation exchange,
the Class B cashiers must apply the same tests as for all check cashing, such
as current dates, drawer’s permanent address, endorsements,
identification, and the other requirements of the CUG Chapter 8. Details of
identification are entered on Form DS-1694, Exchange Transaction Record.
Automated cashiering system users enter the details in the description field of
the accommodation exchange screen to enable USDOs or cashiers to locate and
communicate with individuals at a later date if necessary (see 4 FAM 366.1).
j. Checks or ACH debits originally accepted for
accommodation exchange that are uncollectible are handled in accordance with
CUG Chapter 9.
k. All other banking type support, including electronic
transfers or payment applications, utilized to provide accommodation exchange
require approval by the servicing USDO and CGFS/FPRA/FP.
4 FAM 361.5-4 Office Hours for
Accommodation Exchange
(CT:FIN-470; 05-19-2021)
Accommodation exchange facilities are provided in a
convenient manner to benefit all authorized persons. The office hours for all
public transactions, including accommodation exchange, are described in 4 FAM 399.4.
For employees located at distances from any present exchange facility, the most
feasible arrangements should be made to provide accommodation exchange.
4 FAM 361.5-5 Prevailing Rate of
Exchange
(CT:FIN-470; 05-19-2021)
Cashiers must use the prevailing rate of exchange for
accommodation and reverse accommodation exchange and display the rate at the
cashier window (see 4
FAH-2 H-512).
4 FAM 362 SALE OF FOREIGN CURRENCY
4 FAM 362.1 Persons or Entities for
Whom Accommodation Exchange Transactions are Authorized
4 FAM 362.1-1 Eligible
Individuals
(CT:FIN-470; 05-19-2021)
When the chief of mission has authorized accommodation
exchange transactions, foreign currency may be paid out for:
a. U.S. dollars in the form of checks, drafts, bills of
exchange, other instruments including U.S. disbursing officer (USDO) approved
applications payable in U.S. dollars, and cash; and
b. In the same currency in which drawn, foreign
currency checks drawn by USDOs on official depositary accounts for the
accommodation of the following:
(1) Civilian employees of the U.S. Government who are
U.S. citizens, including direct hire, contract and those under a U.S. Agency
for International Development participating agency service agreement;
(2) Members of the Armed Forces of the United States,
when facilities are not available through military channels;
(3) Contractors and subcontractors who are U.S. firms
or citizens engaged on U.S. Government projects in foreign countries, and the
personnel of such contractors who are U.S. citizens;
(4) U.S. citizen personnel of authorized U.S.
nongovernmental organizations operating with agencies of the U.S. Government;
(5) Eligible family members of individuals (sponsors)
listed in items (1) through (4) under the following conditions:
(a) When the eligible family member who is a U. S.
citizen presents a U.S. Treasury check payable to the presenter; and
(b) When the eligible family member holds a valid power
of attorney or has a Joint Account with the eligible employee. The
“Power of Attorney for Accommodation Exchange” in the Cashier User
Guide (CUG) Chapter 8 is the suggested format for this purpose. However, any
other valid power of attorney may be accepted if it contains substantially the
same provisions.
(6) Eligible family members of individuals listed in
items (1) through (3) without powers of attorney, at safe haven posts to which
ordered in an emergency evacuation, upon presentation of proper identification,
up to a maximum of $4,000 during the first month following evacuation and $800
thereafter for all eligible family members of any one person in any month;
(7) Third-country nationals (TCN) employed as civilian
employees or under contracts of the U.S. Government or contractors or
subcontractors who are U.S. firms engaged in U.S. Government projects in
foreign countries; provided, that the checks presented by the third-country
nationals are U.S. Treasury dollar checks or U.S. dollar checks issued by the
contractors to the third-country national cashing the check (TCN is defined in 3 FAM 7270);
(8) U.S. citizen personnel of commissary, recreation,
and mess facilities operated for post personnel; and
(9) Certain U.S. organizations or organizations
sponsored by the U.S. Government where such exchanges:
(a) Do not violate local government currency law;
(b) Promote the interest of the U.S. Government abroad;
(c) Do not adversely impact or impair the operations of
the Embassy; and
(d) Are approved by the Department of State thru
CGFS/FPRA/FP and COM.
Examples include official Morale, Welfare, and
Recreation activities by Marine Corps detachments assigned to the post;
accommodation exchange assistance to American schools for purchasing books and
other supplies not available in the country.
4 FAM 362.1-2 Cashing U.S.
Treasury Checks Only
(CT:FIN-470; 05-19-2021)
Foreign currency may be paid out for U.S. dollar Treasury
checks in countries where local commercial banks charge excessive fees in
exchange transactions or unreasonably delay credit of deposits to personal
accounts, when presented by the person to whose order drawn, for the
accommodation of:
(1) Any U.S. citizen;
(2) Retired Foreign National employees of the U.S.
Government when the Treasury checks cover payments of Civil Service annuities;
or
(3) Local employees who have received U.S. Treasury
checks.
4 FAM 362.1-3 All Other Local
Currency Requirements
(CT:FIN-470; 05-19-2021)
In addition to covering the personal requirements of all
authorized personnel, these accommodation exchange policies and procedures
apply to all other local currency requirements arising out of contractor and
voluntary agency activities covered by the pertinent contract or agreement
with, or approved by, the United States.
4 FAM 363 SALE OF UNITED STATES
CURRENCY
(CT:FIN-470; 05-19-2021)
a. The sale of U.S. currency (i.e., cash) is regulated
and limited in availability. Such U.S. currency may be sold for U.S. dollar
negotiable instruments only in such amounts as may be required within locally
established currency regulations, for the accommodation of U.S. citizen
employees and other persons authorized accommodation exchange privileges under 4 FAM 362.1-1,
for the following purposes:
(1) For travel outside the country; and
(2) When required to make cash purchases at authorized
U.S. Government facilities such as commissaries, snack bars, and theaters.
b. Access to rates of exchange different from the
official or prevailing rate on the local economy through legal exchange houses
is not justification to receive the sale of U.S. currency from the embassy
cashier, including in countries with high inflation, parallel rates, or where
the currency rates are set by the host government. A chief of mission may
request approval from the Under Secretary for Management for U.S. dollars cash
exchange on a case-by-case basis, see 4 FAH-2 H-511,
paragraph c.
4 FAM 364 PURCHASE OF FOREIGN CURRENCY
4 FAM 364.1 General Provisions
(CT:FIN-470; 05-19-2021)
Foreign currency “cash” may be purchased or
repurchased (referred to as “reverse accommodation exchange”) by
the Class B cashier from persons to whom it was previously sold to by the Class
B cashier, upon departure from post only, in accordance with the provisions of
this section. The purchase of such foreign currency is prohibited if the
currency was acquired in violation of the Department’s policy governing
business activities of personnel and their eligible family members (see 3 FAM 4123 and
Cashier User Guide (CUG) Chapter 8, Accommodation Exchange).
4 FAM 364.2 Authorized Purchases of
Foreign Currencies
4 FAM 364.2-1 From U.S.
Government Employees
(CT:FIN-489; 02-27-2024)
Foreign currency may be purchased from civilian employees
of the U.S. Government who are U.S. citizens, and members of the Armed Forces
of the United States, only when the person is departing the post on transfer or
home leave.
a. Departure on transfer:
(1) Purchase without advance approval - The maximum
amount that can be purchased by the U.S. disbursing officer (USDO) or the Class
B cashier without requiring documentation from a person who is departing on
transfer is the sum of the employee’s salary and allowances as paid on
the biweekly payroll for two biweekly pay periods.
(2) Purchase requiring advance approval - Foreign
currency in excess of the limit noted in paragraph (1) may be purchased from a
person upon receipt of a written application that has been approved in writing
by the chief of mission or designee, subject to the limitations of 4 FAM 364.3,
paragraph a, and 4
FAM 364.4 (see also CUG Chapter 8). An application from personnel of
agencies other than State must also be approved individually in writing by the
highest-ranking officer of the agency concerned or their designee. The letter of application is
addressed to the chief of mission, and includes the following items:
(a) The amount of local currency in excess of the
biweekly pay and allowances limit;
(b) The employee’s anticipated departure date;
(c) A complete description of the source of the
currency;
(d) A declaration that none of the currency was acquired
in violation of local agency regulations or exchange control laws of the
country concerned; and
(e) A request for approval to sell the local currency to
the USDO.
(3) Any foreign currency obtained from the sale of
personal property is separately controlled by the provisions of 4 FAM 368. The
Class B cashier can purchase such currency only with the approval of the chief
of mission or their designee for
Department of State employees and also by heads of other agency for
non-Department of State employees. The financial management officer (FMO), on
behalf of the approving officials, should consult with the servicing USDO about
the approval of large exchange transactions, e.g., proceeds derived from the
sale of employees’ personal property that could exceed local currency
needs.
b. Departure on Home Leave.
The purchase of foreign currency from a direct hire
U.S. Government employee departing the post on home leave and return to the
post is limited to the amount of any local currency acquired from the sale of
personal property that the person plans to replace while on home leave subject
to 4 FAM 368
provisions.
4 FAM 364.2-2 From Eligible
Family Members of U.S. Government Employees
(CT:FIN-489; 02-27-2024)
Foreign currency may be purchased from the primary
eligible family member of a U.S. Government employee cited in 4 FAM 364.2-1,
paragraph a, under the same conditions, when:
(1) The employee has died while assigned to the post;
(2) The employee has preceded their eligible family members in departure from
the post, to the extent the employee has not used the privilege, i.e., the
authorization in 4
FAM 364.2-1, paragraph a, becomes a family authorization; or
(3) The eligible family member resides at other than
the employee’s duty station under separate maintenance allowance
provisions. This does not affect the employee’s authorization at their duty station.
4 FAM 364.2-3 From Contractors
and Third Country National (TCN) Personnel
(CT:FIN-470; 05-19-2021)
a. Foreign currency may be purchased from TCN
personnel; and from U.S. citizen personnel of contractors and subcontractors in
U.S. firms or citizens engaged in government projects in the country, subject
to the check limitations in 4 FAM 362.1-1,
subparagraph b(7), and provided the individual was assigned to the country for
a period of at least 12 months and the individual is permanently leaving the
country. The management officer at post may waive the 12-month requirement
without the approval of the Office of Financial Policy (CGFS/FPRA/FP) when the
employment qualifying the individual or firm is curtailed by the U.S.
Government.
b. The policy governing conversion of foreign currency
from the sale of individual personal property and the disposition of the
proceeds is the same for persons in this category as for U.S. Government
employees to the extent that such persons enjoy the diplomatic importation or
tax privileges because of their contractual or employment relationship to the
U.S. Government (see 4
FAM 368).
4 FAM 364.2-4 From Other
Individuals
(CT:FIN-470; 05-19-2021)
The purchase of foreign currency from individuals other
than as authorized in 4 FAM 364.2-1
through 3 above is prohibited except that such currency may be repurchased from
individuals to whom sold as authorized in 4 FAM 364.3.
4 FAM 364.3 Repurchases of Foreign
Currency
(CT:FIN-470; 05-19-2021)
a. Foreign currency may be repurchased from any person
who acquired foreign currency from the disbursing facility as cited in 4 FAM 362.1-1,
provided:
(1) The person is permanently leaving the country; and
(2) The amount being repurchased is reasonable in view
of the original purchase, duration of time spent in the country, and normal
living expenses. The “reasonable” amount for persons who were
temporarily or permanently domiciled in the country, such as personnel of
non-government agencies, may in no case exceed the basic amount authorized in 4 FAM 364.2-1,
paragraph a, i.e., the sum of the individual’s salary and allowances for
two biweekly pay periods. The USDO, authorized Class B cashier or financial
management officer may require a satisfactory written explanation before
purchasing the foreign currency when it is believed that the amount submitted
for repurchase is questionable.
b. The foreign currency may be purchased by the Class B
cashier with U.S. dollar Treasury checks(s), cash and/or EFT. The amount of
cash that may be issued is limited to the estimated requirements of the person
and eligible family members:
(1) For travel to the United States or new post,
provided that the exportation of U.S. cash is not prohibited or limited by
local law; or
(2) For local purchases under 4 FAM 363.
c. The foreign currency is to be acquired at the
USDO’s prevailing rate.
4 FAM 364.4 Limitation/Restrictions
on Foreign Exchange Purchases
(CT:FIN-470; 05-19-2021)
a. Foreign currency purchases are subject to the
following limitations set by the Treasury Department to curtail exchange losses
to the U.S. Government:
(1) Disbursing officers will ensure that the amount of
foreign currency purchased with U.S. dollars is commensurate with immediate
disbursing requirements. If foreign currency can be readily obtained, the
disbursing officer should purchase an amount which, together with the checkbook
balance on hand at time of purchase, would not exceed estimated requirements
for the ensuing 5 to 7 business days. If foreign currency is not readily
available, the purchase should be in an amount not exceeding that required for
the ensuing seven days. Exceptions may be approved only by Treasury (see 1 TFM
4A, Chapter 3000, Section 30145.20); and
(2) As a result of this limitation, the disbursing
officer should establish with each serviced post any necessary guidelines and
controls on currency purchases and collections made by the post, to prevent
unduly large balances. This may include a requirement for the post to consult
the USDO on major purchases or collections of foreign currency, such as that
resulting from large proceeds of sales by employees, as detailed in 4 FAM 368.
b. Purchase of foreign currency authorized by 4 FAM 364.2-1,
subparagraph a(2), derived from the sale of an individual’s personal
property is restricted to the provisions of 22 CFR Part 136 and 4 FAM 368. This
purchase is in addition to the purchase of currency equivalent to two biweekly
pay periods of salary and allowances authorized in 4 FAM 364.2-1,
subparagraph a(1).
4 FAM 365 SPECIAL EXCHANGE ACTIVITIES
4 FAM 365.1 Sale of Local Currency
to Military Disbursing Officers and Cashiers
(CT:FIN-470; 05-19-2021)
Military disbursing officers and cashiers must purchase
their local currency from the U.S. disbursing officer (USDO) or other U.S.
Government sources whenever it is beneficial to the U.S. Government, e.g., a
better exchange rate is obtained through combined bulk buying of local
currency. Military disbursing officers and cashiers may purchase their local
currency from the USDO if the physical location or simplicity of the
transaction makes this a preferred method. Where there is no advantage in
buying local currency from the USDO, the purchase is made through local banking
facilities.
4 FAM 365.2 Transactions in Support
of Binational Organizations
(CT:FIN-470; 05-19-2021)
The USDO may acquire foreign currency from local
organizations and institutions participating in U.S. Government sponsored
binational programs. The purchase must be at the prevailing rate, must not
contravene local currency laws, and must be for conversion to a U.S. Treasury
dollar check to pay certain U.S. dollar obligations. In countries where local
banking practices permit organizations to maintain U.S. dollar accounts, use of
commercial banking facilities should be encouraged. Purchase of foreign currency
from foreign national individuals of those organizations is prohibited.
4 FAM 366 RECORDING ACCOMMODATION AND
OFFICIAL EXCHANGE TRANSACTIONS
4 FAM 366.1 Exchange Transactions
Record
(CT:FIN-473; 06-03-2021)
a. Authorized class B cashiers maintain a complete
record of all check cashing and exchange transactions, official as well as
accommodation, in the CGFS-approved automated cashier system (ACS) or on Form
DS-1694, Exchange Transaction Record. The record serves to identify persons
using the facility and to identify negotiable instruments in cases of loss in
transit or return due to insufficient funds (see Cashier User Guide (CUG)
Appendix A).
b. Separate records are maintained for dollars and for
each kind of foreign currency at posts dealing in more than one foreign
currency.
4 FAM 366.2 Exchange Transactions
Voucher
(CT:FIN-473; 06-03-2021)
Exchange transactions are summarized in the ACS or on Form
OF-234, Exchange Transactions Voucher, by type of exchange performed (see CUG
Appendix A).
4 FAM 366.3 Accountability Record
(CT:FIN-473; 06-03-2021)
Amounts recorded as receipts and payments in the ACS or on
Forms DS-1694, Exchange Transaction Record, and OF-234, Exchange Transactions
Voucher, are totaled and posted to the cashier’s accountability record.
4 FAM 367 INQUIRIES
(CT:FIN-470; 05-19-2021)
General questions and guidance concerning the application
of the above policy and regulations should be addressed to the Office of
Financial Policy (CGFS/FPRA/FP). Specific questions or guidance concerning
issues such as foreign currency exchange, foreign banking and international
agreements related to foreign currency for the Department and other agencies
should be addressed to the Office of Global Disbursing Operations (CGFS/DO).
4 FAM 368 DISPOSITION OF
EMPLOYEES’ PERSONAL PROPERTY OVERSEAS AND CONVERSION OF PROCEEDS
4 FAM 368.1 Purpose and Authorities
(CT:FIN-470; 05-19-2021)
a. The disposition of employees’ personal
property overseas often results in a request for conversion of proceeds from
local currency to U.S. dollars. Therefore, guidance related to disposition of
personal property is included in this subchapter.
b. Title III of the State Department Basic Authorities
Act (22 U.S.C. 4341 - 4343) is the legislation covering disposition of
employees’ personal property overseas. Regulations implementing this
statute are published in 22 CFR 136.
4 FAM 368.2 Employees’
Personal Property Sales Abroad
(CT:FIN-470; 05-19-2021)
a. Personnel under the authority of a chief of mission
may sell their personal property with prior permission under controlled
conditions before departure from post on transfer or home leave orders.
Profits cannot be retained from the sale of personal property having more than
minimal value to individuals who do not have customs or sales tax exemption
status.
b. The post procedure must provide control over all
sales of personal property, whether or not a reverse accommodation exchange
will be made. Post check-out procedures for departing employees should show
that sales have been reported or that the employee certified no sales were
made.
c. Detailed guidance is contained in 22 CFR 136 for
the mandatory post procedure required by the regulations. To ensure that the
intent of the regulations is followed, the post procedure should include at
least the three essential steps described below. A sample 3-page form which
can be adapted at post to record these steps and provide an official audit
trail for both the post and the employee is contained in 4 FAM Exhibit
368.2. Although the post may adapt this form to local use, the exact
language for the statements and certifications by employees and by authorizing
officers must appear in any post version of the form.
d. Although the term “employees” is used
throughout the material that follows, the procedures apply equally to
contractors who enjoy importation or tax privileges because of their
contractual relationship with the U.S. Government as provided in 22 CFR Section
136.6. Also, for purposes of this section, the term “personal
property” is not intended to include assets that may have been acquired
as a result of a family member’s business activities at the overseas
location.
(1) Approval to sell based on the
employee’s list of proposed sale items and estimated sales prices.
The authorizing officer must determine that the sale will meet the chief of
mission’s criteria for employees’ personal property sales at that
post (see 4 FAM
Exhibit 368.2, Schedule A);
(2) Report of items sold, proceeds
and profits. The employee must report the items sold, with amounts
collected and resulting profits. Following the post procedure guidelines, the
employee designates charitable foreign entities authorized by the chief of
mission as charitable recipients and amounts for the profits that cannot be
retained and certifies the completeness and accuracy of the entries. The
authorizing officer must verify the amounts and proposed distribution of
profits in accordance with post guidelines and approves the request for
payments to designated recipients and the employee (see 4 FAM Exhibit
368.2, Schedule B);
(3) Reverse accommodation exchange of
proceeds. The employee deposits local currency proceeds (approved in
step 2 above) with the Class B cashier, who prepares the reverse accommodation
exchange voucher for the authorized certifying officer. The form summarizing
the entire set of approved sale transactions becomes an official record to back
up the certified exchange voucher and to assist the employee’s tax
reporting purposes (see 4 FAM Exhibit
368.2, Schedules A and B).
4 FAM 368.3 Number and Timing of
Reverse Accommodation Exchanges
(CT:FIN-470; 05-19-2021)
a. The post procedure will specify the number and
timing of authorized currency conversions of sales proceeds that may be made
for the employee. This is normally not more than two: one for sale of a
privately owned vehicle, and one for all other proceeds. These conversions may
be made in addition to the conversion of the two biweekly pay periods of local
currency conversion authorized in 4 FAM 364.2-1,
subparagraph a(1). The post procedure should also specify that larger reverse
accommodation exchange transactions will be made by electronic funds transfer
(EFT) to the maximum extent possible.
b. Cashiers are prohibited from safeguarding or holding
cash or check proceeds from a departing individual’s sale of personal
property pending a future reverse accommodation exchange transaction. The
departing individual (not the cashier) should accumulate proceeds from these
sales and make a single reverse accommodation exchange (or two if authorized by
the designated authorizing officer at the post) for the total approved amount
instead of making reverse accommodation exchanges for each sale.
c. A cashier may provide reverse accommodation to
authorized post and temporary duty (TDY) individuals for nominal amounts when
the individual is departing the post. Under a permanent change of station
situation, reverse accommodation exchange transactions for the departing
individual will be made via EFT to the individual’s bank account to the
maximum extent possible. A U.S. dollar Treasury check payable to the departing
individual may be processed if requested for hardship reasons and the justification
is approved by the designated authorizing officer. However, the amount in any
request for a Treasury check must exceed $1,000. If cash is authorized for
hardship reasons, the amount may be no more than $3,000. The amount authorized
for a cash payment is an operational decision at the post level and may be set
lower than $3,000. The post should establish a policy for requesting a
hardship payment; identify the amount that will be authorized; and advise all
employees, including visitors, that they must inform the cashier in advance of
the anticipated transaction date and provide a dollar estimate of the
anticipated transaction (see 4 FAM 399.4-2).
4 FAM 368.4 Post Procedure File
(CT:FIN-470; 05-19-2021)
A copy of the post procedure covering disposition of
employees’ personal property should be sent by the post management
officer to the regional bureau post management officer when first issued and
whenever revised and made accessible to all embassy employees. Department
personnel refer to this copy when the post requests guidance or interpretation
of the 22 CFR 136.
4 FAM 369 UNASSIGNED
