Corporate Governance Framework
What is fraud and corruption?
3. The Fraud Act 2006 (opens in new tab) introduces a statutory single offence of fraud which can be committed in three different ways:
- false representation
- failure to disclose information when there is a legal duty to do so
- abuse of position.
For practical purposes fraud can be defined as dishonest conduct with the intention to make gain, cause a loss, or cause the risk of a loss to another.
4. Existing offences such as theft, corruption, false accounting, forgery, counterfeiting and blackmail continue to be offences under previous relevant legislation.
5. ‘Corruption’ is defined as the offering, giving, soliciting, or acceptance of an inducement or reward which may influence any person to act inappropriately. Employees should be aware that they may be exposed to corrupt activity in a variety of ways, for example the offer of bribes, coercion, blackmail and false accounting. The nature of the Commission’s work means that employees need to be aware of the risk of allegations of corruption and for this reason the Commission has strict rules for giving and receiving any hospitality and gifts. These are set out in the Code of Conduct for Commissioners in Appendix 8 and the Code of Conduct for Employees.
6. The Bribery Act 2010 (opens in new tab) creates four principal offences:
- paying bribes
- receiving bribes
- bribery of a foreign public official
- failure by a commercial organisation to prevent a bribe being paid to obtain or retain business or a business advantage.
There is a defence if an organisation can prove it has adequate procedures to prevent bribery. Penalties associated with these offences are severe and include penalties for management who turn a blind eye.Previous section
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Avenues for reporting fraud
Last updated: 27 February 2023
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