IsDB Group Sanctions framework

• Article 16(2) of the foundation document, the ‘Articles of Agreement’ which established the IsDB, mandates the Bank to ensure that financing is utilized solely for the purposes for which it was provided. In furtherance of this duty, the IsDB Group has implemented specific procedures and instruments to ensure that all its operations and activities adhere to rigorous standards of regularity, transparency, integrity, and legality.

Accordingly, sanctions are imposed on individuals and entities that engage in sanctionable practices in IsDB Group-financed projects and activities. Article 9 of the IsDB Group Integrity Policy states that the Chairman of the IsDB Group shall set-up an appropriate mechanism for managing the sanctions process and procedures for external parties. Pending the set-up and implementation of the sanction framework, ad-hoc institutional arrangements may be utilized by the IsDB Group.

• Sanctions that the IsDB Group may impose include Reprimand, Conditional Non-Debarment, Debarment, Debarment with Conditional Release, Restitution or Remedy. Debarred entities are ineligible from participating in IsDB Group-financed projects and activities, either permanently or for a designated period of time. 
• In line with its policies and procedures, the IsDB Group may debar an individual or entity that has been debarred by another Multilateral Development Bank or International Financial Institution.

• In the interest of cooperation, harmonization and transparency, the Group Integrity and Ethics Department (GIED) may share the findings of an investigation with other international organizations and representatives or agencies of IsDB member countries on a need-to-know basis. Shared details may include the names of parties declared ineligible to participate in IsDB-financed projects and activities, or any other information related to GIED investigations.