Anti-fraud and corruption policy
Definitions of Commonly Used Terms
5.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) defines fraud as: “Any intentional false representation, including failure to declare information or abuse of position that is carried out to make gain, cause loss or expose another to the risk of loss”
5.2 As a crime ‘Fraud’ is defined by the Fraud Act 2006 as: • Fraud by false representation • Fraud by failing to disclose • Fraud by abuse of position
5.3 In addition, the Fraud Act deals with offences relating to the possession of articles for use in fraud, making or supplying articles for use in frauds, participation by a sole trader in fraudulent business, and obtaining services dishonestly, either personally or for another.
5.4 The Bribery Act 2010 came into force in the UK on 1 July 2011. It amends and reforms UK criminal law and provides a modern legal framework to combat bribery in the UK and internationally. Staff need to be aware of their obligations under this Act, which sets out the criminality of accepting and giving bribes. This applies to both staff and the Council corporately.
5.5 The Bribery Act creates the following offences: • Active bribery: promising or giving a financial or other advantage; • Passive bribery: agreeing to receive or accepting a financial or other advantage; • Bribery of foreign public officials; and • The failure of commercial organisations to prevent bribery by an associated person (corporate offence).
5.6 The penalty under the Bribery Act is an unlimited fine and/or imprisonment up to a maximum of 10 years. These responsibilities are set out within the Council’s AntiBribery Policy. Corruption
5.7 Corruption is the deliberate misuse of your position for direct or indirect personal gain. Corruption includes offering, giving, requesting or accepting a bribe or reward, which influences your actions or the actions of someone else.
5.8 The Bribery Act 2010 makes it possible for Senior Officers to be convicted where they are deemed to have given their consent or tacit approval in giving or receiving a bribe.
5.9 The Act also creates the Corporate Offence of “Failing to prevent bribery on behalf of a commercial organisation” (corporate liability). To protect itself against the corporate offence, the Act also requires organisations to have “adequate procedures in place to prevent bribery”. This policy, the Member and Employee codes of conduct and the Whistleblowing Procedure are designed to meet that requirement.
5.10 The Council recognises its responsibilities under the Money Laundering Regulations 2017 (as amended) and the Proceeds of Crime Act 2002. Money Laundering is the process by which criminals attempt to ‘recycle’ the proceeds of their criminal activities in order to conceal its origin and ownership whilst retaining use of the funds.
5.11 The burden of identifying and reporting acts of money laundering rests within the Council. Any service that receives money from an external person or body is potentially vulnerable to a money laundering operation.
5.12 The burden of identifying and reporting acts of money laundering rests within the Council. Any service that receives money from an external person or body is potentially vulnerable to a money laundering operation.
5.13 The need for vigilance is vital and any suspicion concerning the appropriateness of a transaction should be reported and advice sought from the Money Laundering Reporting Officer.
5.14 Responsibilities and reporting arrangements are set out within the Council’s AntiMoney Laundering Policy