One of the first policies approved by AIIB’s Board of Directors was the Policy on Prohibited Practices (PPP). The PPP defines the seven Prohibited Practices in AIIB-funded projects and activities, namely: Coercion, Collusion, Corruption, Fraud, Misuse of Resources, Obstruction, and Theft. The PPP articulates the process through which AIIB may investigate and sanction parties that violate the PPP. It also established AIIB’s two-tier Sanctions System comprised of a Sanctions Officer and the Sanctions Panel.

The PPP also provides the basis for AIIB to unilaterally cross-debar all firms and individuals that are debarred by five multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions (AMEDD). For more information on debarment: www.aiib.org/debarment.

The PPP is also complemented by a Directive on the Policy on Prohibited Practices issued in 2017.