Sanctions System

Transparency

In the context of promoting integrity and good governance in the region, the IDB Group is committed to the highest integrity standards in all its operations. In alignment with this commitment, the IDB Group has an extensive set of policies, best practices and specialized mechanisms to reinforce integrity best practices and deter Prohibited Practices such as fraud and corruption in all IDB-Group financed projects.

A key component to the deterrence of Prohibited Practices is the IDB Group’s Sanctions System, composed of the Office of Institutional Integrity (OII), the Sanctions Officer (SO), and the Sanctions Committee (SNC). Guided by the Uniform Framework for Preventing and Combating Fraud and Corruption adopted by the International Financial Institutions Anti-Corruption Task Force and the IDB Group’s Sanctions Procedures, the three components of the Sanctions System form a robust mechanism to address Prohibited Practices in IDB Group-financed activities through transparent investigations and two-tier adjudication processes that can result in administrative public sanctions.  

For more, please visit the links above or Key Documents to view the documents mentioned.

What are Prohibited Practices?

The IDB Group prohibits the following practices in all financed activities:

  1. A “corrupt practice” is the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party;
  2. A “fraudulent practice” is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;
  3. A “coercive practice” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;
  4. A “collusive practice” is an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party; and
  5. An “Obstructive Practice” is: (i) destroying, falsifying, altering or concealing of evidence material to a Bank investigation, or making false statements to investigators, with the intent to impede a Bank investigation; (ii) threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to a Bank investigation or from pursuing the investigation; or (iii) acts intended to impede the exercise of the Bank’s contractual rights of audit or inspection or access to information.
  6. A “misappropriation” is the use of IDB Group financing or resources for an improper or unauthorized purpose, committed either intentionally or through reckless disregard (Effective 1/1/2020).

Please see Key Documents: Sanctions Procedures (2020 revision).