MDB Harmonised Framework for Preventing and Combating Fraud and Corruption

The MDB Harmonised Framework for Preventing and Combating Fraud and Corruption is a shared policy architecture adopted by the World Bank, Asian Development Bank, African Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank to apply consistent definitions, investigation standards, and sanctions across all development-bank-financed procurement worldwide.

What is the MDB Harmonised Framework for Preventing and Combating Fraud and Corruption?

The framework was first agreed in 2006 and has been updated jointly since, establishing a common vocabulary for five prohibited practices: fraud, corruption, collusion, coercion, and obstruction. Each term has a defined meaning that applies uniformly across all five banks, so a company cannot exploit definitional gaps by working across institutions. The framework also sets out harmonised procedures for integrity investigations, cross-referral of complaints, and the sharing of evidence between bank integrity units. Its most consequential operational expression is the cross-debarment agreement: a company sanctioned by any one of the five MDBs for a prohibited practice is automatically debarred by all five, making a single finding carry global consequences for a supplier's access to development finance.

Compliance with the framework is not optional for bidders: every MDB standard bidding document and procurement contract incorporates the prohibited practices clause by reference, and every bidder signs a declaration accepting it as a condition of participation. The framework also governs sanctionable-practices beyond the procurement phase, extending to contract execution and project completion.

Why the MDB Harmonised Framework matters for bidders

For any company that bids on MDB-financed contracts in multiple countries or across multiple institutions, the harmonised framework means that integrity compliance is not a jurisdiction-by-jurisdiction calculation. A single lapse investigated and sanctioned by one bank eliminates access to the entire MDB ecosystem. Suppliers should treat the prohibited practices clause in every bidding document as a live compliance obligation, not boilerplate. Practical steps include maintaining an integrity due diligence programme for subcontractors and consortium partners, documenting the genuine commercial basis of any agent or representative relationship, and understanding the voluntary disclosure programme available at the World Bank and some peer institutions, which offers reduced sanctions in exchange for cooperation before an investigation opens.

FAQ

Which five banks operate under the harmonised framework?

The World Bank Group, Asian Development Bank, African Development Bank Group, European Bank for Reconstruction and Development, and Inter-American Development Bank Group are the five institutions that jointly adopted and operate under the harmonised framework.

What happens if a company is debarred by one MDB under this framework?

Under the cross-debarment agreement that runs alongside the framework, all five banks automatically enforce a debarment imposed by any one of them for a prohibited practice, barring the company from contracts financed by all five institutions simultaneously.

Where can suppliers check whether a company is debarred?

Each of the five MDBs publishes a public debarment list on its website, and the World Bank's list is the most comprehensive, covering Group-wide sanctions and cross-debarments from peer institutions, and is searchable by company name and country.