Here's what Madvig says:
Any lifter, coach, referee or official who competes or participates in a Powerlifting or Bench Press competition not organised, sanctioned or approved by the IPF shall not be permitted to take part in any IPF international or regional competition for a period of 12 months from the date of that non-approved competition.
If what Madvig says is true, it's odd why they don't clarify that in the wording of the rule. It's not like it's a brand new rule and there hasn't been questions about it in the past. Official clarification is certainly in order. UPDATE: Jeff Butt, president of the Canadian Powerlifting Union (Canadian affiliate of the IPF) offers his interpretation:
Most of the calls and emails I have gotten where from local lifters who where concerned that since they have competed in non USAPL events in their area that their status with the USAPL was in jeopardy. I have since made some calls regarding this subject and found the following information. This rule was in creation from the IPF congress WAS NOT intended to be aimed at or enforced on the local level what so ever. It was only to intend for International events that where not IPF sanctioned for which International lifters compete in. Some confusion has occurred on how this rule is being interpreted in the IPF . The matter is being worked out. So if I was a local lifter who wanted to compete at a non sanctioned event I would go ahead and do so. From my research the leadership of the USAPL is going to make it clear to the IPF that applying such rules on the local level would make no sense and would be almost impossible to enforce. We should expect some more information on this coming in the near future.
So a similar understanding as Madvig, although it sounds like neither completely know the answer.
The interpretation I got is that it is at the International level only. So you could lift locally but not on an International stage with another Federation. I will verify this and ask about when it is in effect.