IDEAS home Printed from
   My bibliography  Save this article

Fight Against Corruption: Sanctions Regimes of Multilateral Development Banks


  • Norbert Seiler
  • Jelena Madir


Much has been written about the consequences for companies of criminal convictions for bribery and other corrupt practices. However, less attention has been paid to the sanction regimes that have been developed by multilateral development banks (MDBs) in order to combat fraud and corruption in their operations. This may change in view of the fact that, on 9 April 2010, the heads of five leading MDBs--the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank--signed an agreement providing for mutual and reciprocal enforcement of debarment decisions. The Agreement for Mutual Enforcement of Debarment Decisions (the 'Agreement') thus increased the risk faced by commercial organizations that do business in the developing world, while affirming the MDBs' commitment to combating fraudulent, corrupt and collusive practices. Consequently, companies will need to invigorate their procedures with a view to managing their risks not only in relation to national legislation, but also in relation to the MDBs' sanctioning authorities, which have much broader geographic scope than that of national legislations such as the U.S. Foreign Corrupt Practices Act or the UK Bribery Act. This article first provides a brief history of anti-corruption measures taken by the MDBs and examines the tenets of collective enforcement action established by the Agreement. Further, as the signatories of the Agreement continue to maintain their own sanctions mechanisms, the article analyses the individual sanctions systems of each of the five signatories of the Agreement. Finally, the article describes the types of sanctions that may be imposed by MDBs and looks at some of the challenging issues surrounding MDBs' sanctions practices. Oxford University Press 2012, all rights reserved, Oxford University Press.

Suggested Citation

  • Norbert Seiler & Jelena Madir, 2012. "Fight Against Corruption: Sanctions Regimes of Multilateral Development Banks," Journal of International Economic Law, Oxford University Press, vol. 15(1), pages 5-28, March.
  • Handle: RePEc:oup:jieclw:v:15:y:2012:i:1:p:5-28

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Auriol, Emmanuelle & Søreide, Tina, 2017. "An economic analysis of debarment," International Review of Law and Economics, Elsevier, vol. 50(C), pages 36-49.
    2. repec:spr:revint:v:12:y:2017:i:2:d:10.1007_s11558-017-9275-2 is not listed on IDEAS

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jieclw:v:15:y:2012:i:1:p:5-28. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.