Cross debarment is an agreement among the African Development Bank Group, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and the World Bank Group (referred to as Multilateral Development Banks) to mutually enforce each other’s debarment actions, with respect to the four harmonized sanctionable practices, i.e. corruption, fraud, coercion, and collusion.
These Multilateral Development Banks (MDBs) signed the "Agreement on Mutual Enforcement of Debarment Decisions" on 9 April 2010. The agreement became effective for the MDBs on the following dates:
- Asian Development Bank - 9 June 2010
- European Bank for Reconstruction and Development - 9 June 2010
- World Bank - 19 July 2010
- Inter-American Development Bank - 9 May 2011
- African Development Bank - 11 July 2012
An innovative coordinated global initiative, cross debarment creates a formidable additional deterrent to firms and individuals engaged in fraud and corruption in MDB-financed development projects, and possibly provides an incentive for firms to clean up their operations.