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World Bank as an Investigative and Disciplinary Entity

Sanctions Proceedings

Mitigating the Risk of Crippling Sanctions

• Companies should make it a priority to determine whether they are involved with any MDB-financed project.
• Many companies don't realize they have MDB-funded contracts until the sanctions investigations begin.
• Companies should ensure compliance with the MDB's procurement regulations and guidelines.
• Companies should ensure they have proper anti-corruption programs in place, and that their programs are in line with the MDBs' compliance guidelines.
• A company should not wait until receipt of a show cause letter to engage counsel. By that point, the damage may have already been done. If a company receives an audit request from any MDB, including an informal request to provide documents or information to INT, PIAC, or other MDB investigations units, counsel should be engaged to assist in response and help navigate through ensuing investigation and litigation.
• Many companies don't realize the significance of such an audit until they have made incriminating and inculpatory statements. Counsel should be engaged immediately.

William Jacobson is a white-collar lawyer and first-chair trial litigator in Orrick's Washington, D.C., office. He has served in various other roles, including general counsel, chief compliance officer, federal prosecutor and government-appointed monitor.

Lauren Muldoon is a senior associate in the firm's Washington, D.C., office. Her practice focuses on white-collar criminal matters, investigations and compliance.