Prohibited Practices Policy

PURPOSE 

The purpose of this policy is to: define conduct and activities which are prohibited; explain obligations and expectations of CI Staff and CI Delivery Partners to adhere to the highest standards of integrity; and to describe CI controls and corrective actions to prevent and counter prohibited practices in the course of CI Business. The policy is complementary to CI’s Anti-Money Laundering and Counter-Terrorist Financing Policy and CI’s Policy on Reporting Unethical Conduct and Anti-Retaliation.

SCOPE

This Policy applies to all CI employees, interns, fellows, volunteers, and representatives (jointly, "CI Staff") as well as CI grantees/awardees, contractors, suppliers, consultants, and their employees, sub-grantees/-awardees, and representatives (jointly "CI Delivery Partners"). It outlines expectations and requirements for CI Staff and CI Delivery Partners in relation to all CI operations and CI funded project/program implementation (jointly “CI Business”).

OUR PRINCIPLES AND ACTIONS

CI maintains a zero-tolerance approach with respect to the Prohibited Practices described in this policy and we require all CI Staff and CI Delivery Partners to adhere to the highest levels of integrity when carrying out CI Business. All CI Staff and CI Delivery Partners shall refrain from, take reasonable measures to actively prevent, and promptly report to CI when Prohibited Practices (defined below) are suspected, alleged, or identified in the course of CI Business.

DEFINITIONS

Corruption and Bribery: Corruption and Bribery is defined as the offering, giving, receiving, or soliciting, directly or indirectly, anything of value (including but not limited to gifts, gratuities, favors and invitations) to improperly influence the actions of another. This prohibition includes making an act of Corruption.

• CI Staff must abide by all applicable anti-bribery and anti-corruption laws. CI Staff in all countries, with no exceptions, are subject to the U.S. Foreign Corrupt Practices Act (“FCPA”). The FCPA prohibits improper payments to government officials, which includes officials of public international organizations such as Inter-American Development Bank (IDB), The World Bank Group (WB) and the United Nations (UN).
• CI Staff living or working in countries other than the United States may additionally be subject to local anti-corruption laws. Operation leads are responsible for ensuring that the requirements of these local laws are communicated to CI Staff, and that procedures are in place to ensure compliance.
• Due to requirements imposed by CI donors, certain CI Staff members and others acting on behalf of CI or for its benefit (“associated persons”) may be required to comply with other specific anti-bribery laws. A list of extended policies and procedures can be found in Additional Anti-Corruption Policies.
• Facilitation payments are not permitted, unless made to secure the personal health or safety of CI Staff or CI Delivery Partner in response to imminent threats or duress. A facilitation payment is a payment made to a public official to further routine governmental action e.g., processing visas, clearing customs, providing police protection that is of a non-discretionary nature i.e., that the official is already bound to perform. A legally mandated administrative fee for expediting government services is not a prohibited facilitating payment but in such cases, a receipt must be retained.
• Given CI’s collaboration with government partners, there may be cases in which CI Staff wish to make proper payments to public officials. Because of the legal prohibitions that surround payments and/or giving, offering, or providing anything of value to public officials, any such potential payment must have a specific, detailed, legitimate purpose related to CI's mission, and must be clearly documented by an agreement stating with particularity how the funds are to be used. In limited circumstances, cultural or societal norms may warrant considering gifts or items of value to be given by CI. These limited circumstances should be pre-cleared with the General Counsel’s Office (GCO) and the relevant Regional or Country Program Director.

Fraud: Fraud is defined as any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit, or to avoid an obligation.

Abuse/Theft: Abuse/Theft is defined as misappropriation, waste or improper use of property or assets, either intentionally or through reckless disregard.

Unmitigated Conflicts of Interest: A conflict of interest is a situation that undermines, has the appearance of undermining, or potential to undermine the impartiality of an employee or other individual because of the possibility of a clash between the employee’s/individual’s interests and professional interest.

• A Conflict of Interest by itself is not a prohibited practice, rather the act of non-disclosure and non-mitigation is a prohibited practice.
• CI Staff are required to identify and disclose Conflicts of Interest in accordance with CI’s Conflict of Interest Policy.
• CI Delivery Partners are responsible for the identification and disclosure of any actual or potential conflicts of interest to CI and shall suggest mitigation measures in accordance with Delivery Partner’s own conflict of interest policy. Such mitigation measures are subject to approval by CI, and the Delivery Partner is required to follow any additional mitigation instructions provided by CI.

Collusion: Collusion is defined as an arrangement between two or more parties designed to achieve an improper purpose including to improperly influence the actions of another party. CI Staff and CI Delivery partners are required to conduct procurement in an open and competitive manner with procurement guidelines as determined applicable by CI’s Procurement Policy.

Coercion: Coercion is defined as impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to improperly influence the actions of that party.

Obstruction: Obstruction is defined as materially impeding CI’s or a donor’s contractual rights of audit or access to information.

Money Laundering: Money Laundering is defined as conversion or transfer of property, knowing that such property is the proceeds of crime.

Terrorist Financing: Terrorist Financing includes providing in-kind, financial support or technical assistance for the purpose of, or in the knowledge that they are to be used to carry out terrorist acts.

Retaliation: Retaliation is defined as threatening or committing an act against someone because of their report of suspected wrongdoing or cooperation with an investigation into wrongdoing

REPORTING

CI Staff are encouraged to immediately raise concerns with their line manager, where they have no reason to believe that their line manager is involved in any way in the Prohibited Practice. Additionally, CI Staff and Delivery Partners shall promptly report any suspected or alleged occurrence of Prohibited Practice in connection with CI Business to CI’s Investigation Function by using one of the available reporting channels:

• General Counsel’s Office
• CI Ethics Hotline
• Via phone to a local dial-in number available on CI’s Ethics Hotline

INVESTIGATION AND CORRECTIVE ACTION

CI’s Investigation Function shall promptly investigate such reports in accordance with its Investigation Standards and Procedures, recommend appropriate disciplinary measures, corrective measures and/or criminal or other sanctions. CI will attempt to recover losses by any lawful means.

CI is also committed to ensuring that opportunities for Prohibited Practices are reduced to the lowest possible level of risk; that effective controls are maintained to prevent Prohibited Practices, and that systems and procedures are reviewed and improved following detected cases of Prohibited Practices.

CONSEQUENCES OF POLICY VIOLATIONS

Violation of this Policy by CI Staff will result in disciplinary or other action, including and up to termination.

Violation of this Policy or failure to comply with the applicable grant or agreement terms by CI Delivery Partners will result in remedial action, including termination of the relevant agreement for cause with immediate effect and demand for reimbursement/restitution of funds with respect to which Prohibited Practices have occurred.