Anti Fraud and Corruption Policy 2021 to 2022

2.1 Fraud: Is defined by The Fraud Act 2006 as follows.

A person is guilty of fraud if he is in breach of any of the following:

Fraud by false representation, that is if a person:
(a) dishonestly makes a false representation
(b) intends, by making the representation:
(i) to make a gain for themselves or another
(ii) to cause loss to another or to expose another to a risk of loss

Fraud by failing to disclose information, that is if a person:
(a) dishonestly fails to disclose to another person information which they are under a legal duty to disclose
(b) intends, by failing to disclose the information:
(i) to make a gain for themselves or another
(ii) to cause loss to another or to expose another to a risk of loss

Fraud by abuse of position; that is if a person:
(a) occupies a position in which they are expected to safeguard, or not to act against, the financial interests of another person
(b) dishonestly abuses that position
(c) intends, by means of the abuse of that position:
(i) to make a gain for themselves or another
(ii) to cause loss to another or to expose another to a risk of loss

The Fraud Act 2006 repeals certain offences that are detailed in the Theft Acts of 1968 and 1978.

The term “fraud” is usually used to describe depriving someone of something by deceit, which might either be misuse of funds or other resources, or more complicated crimes like false accounting or the supply of false information.

In legal terms, these activities include:

• deception
• bribery
• forgery
• extortion
• corruption
• theft
• conspiracy
• embezzlement
• misappropriation
• false representation
• concealment of material facts, and
• collusion

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, personally or for another.

2.2 Corruption: is the deliberate use of one’s position for direct or indirect personal gain.

“Corruption” covers the offering, giving, soliciting or acceptance of an inducement or reward, which may influence the action of any person to act inappropriately.

2.3 Theft: is the physical misappropriation of cash or other tangible assets.

A person is guilty of “theft” if he or she dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it.

2.4 Money Laundering: is any process used by criminals to conceal the origins of illegally obtained money, through criminal activities, to appear to have come from legal and legitimate sources.

All employees are instructed to be aware of the increasing possibility of receiving requests that could be used for money laundering and illicit requests for money through emails. Detailed guidance is set out in the Council’s Anti-Money Laundering Policy.

2.5 Any service that receives money from an external person or body is potentially vulnerable to a money laundering operation.

The need for vigilance is vital and if there is any suspicion concerning the appropriateness of the transaction, then advice must be sought from the Council’s Money Laundering Reporting Officer (MLRO), Service Director of Corporate Finance (S.151 Officer).

To report any incidents, please complete a Customer Due Diligence (CDD) Pro-Forma which can be accessed in our Anti-Money Laundering Policy.

2.6 Legal Services also have their own professional guidance in relation to money laundering which places a duty on solicitors to report any suspicions and these may override their legal professional privilege and confidentiality.

All such suspicions must be reported to the Monitoring Officer (Deputy Chief Executive) and the MLRO.

2.7 Bribery: The Bribery Act 2010 came into force in the UK on 1st July 2011.

It amends and reforms the 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 of bribes.

This applies to both individual staff and the Council corporately.

The Bribery Act 2010 introduces four main offences, simplified as the following:

• bribing another person: a person is guilty of an offence if he or she offers, promises or gives a financial or other advantage to another person
  
• offences relating to being bribed: a person is guilty of an offence if he or she requests, agrees to receive, or accepts a financial or other advantage. It does not matter whether the recipient of the bribe receives it directly or through a third party, or whether it is for the recipient's ultimate advantage or not
  
• bribery of a foreign public official: a person who bribes a foreign public official is guilty of an offence if the person’s intention is to influence the foreign public official in their capacity, duty or role as a foreign public official
  
• failure of commercial organisations to prevent bribery: organisations, which include the Council, must have adequate procedures in place to prevent bribery in relation to the obtaining or retaining of business

Note: A ‘financial’ or ‘other advantage’ may include money, assets, gifts or services

2.8 Prior to entering into any business arrangements, all Council officers and or business units should ensure that they have taken all reasonable steps to identify any potential areas of risk relating to bribery or corruption.