The Scottish Parliamentary Corporate Body (SPCB) recognises the crucial importance of maintaining both the reputation of the Scottish Parliament and the confidence of Members, our employees, business partners and the people of Scotland.

The Scottish Parliamentary Corporate Body (SPCB) does not tolerate and is committed to the prevention of fraud committed by it or against it, or committed by its associated persons.

The SPCB will not work with others who do not share our zero-tolerance approach to fraud or our commitment to preventing such acts. The SPCB complies with all relevant anti-fraud laws and regulations in all its relevant activities in the UK and overseas.

The SPCB does not, and will not, engage directly or indirectly in or otherwise encourage fraud.

The SPCB is committed to avoiding any perception that it may be engaging in acts of fraud.

The SPCB is committed to carrying out its activities fairly, honestly and transparently. It is committed to developing and maintaining a culture which does not tolerate, and which is not complacent about, the risks of fraud.

1. Aim of this policy

The aim of this policy is to make clear that the SPCB does not tolerate any form of fraud in the conduct of our own activities or in our dealings with others. It is also intended to demonstrate SPCB's commitment to implementing effective measures to prevent, monitor and eliminate such acts or the perception of such acts. The SPCB recognises the Scottish Parliament’s place at the heart of public and political life in Scotland and the particular importance to us of maintaining the trust and confidence of the public, Members, employees, and business associates.

Our commitment is to a zero-tolerance approach to fraud and to a free and open culture in dealings between employees and all third parties with whom the SPCB engages. This policy sets out the responsibilities of the SPCB, its employees and associated persons in upholding this commitment.

Together with setting out our approach to fraud, this policy also provides guidance on how to recognise fraud issues and sets out a mechanism for raising concerns whenever they are known about or suspected.

2. Who does this policy apply to?

This policy applies to all SPCB employees, and any persons performing services for or on behalf of the SPCB ("associated persons"), wherever they are located. This includes agency workers, seconded workers, volunteers, interns, agents, contractors, external consultants, third-party representatives, and business partners.

With the exception of the Presiding Officer and appointed Members of the SPCB, who are also “associated persons” of the SPCB by virtue of their role under s.21 of the Scotland Act 1998, the policy does not apply to Members of the Scottish Parliament (“MSPs”) or to their employees.

This policy applies wherever work for, by or on behalf of the Scottish Parliament takes place, including overseas.

All SPCB employees and any other associated persons must familiarise themselves with the terms of this policy and comply with these terms, including any future updates that may be issued from time to time by the SPCB.

A requirement to comply with this policy and anti-fraud laws and regulations will be included in the specification of all contracts entered into with associated persons, including suppliers of goods or services.

This policy does not form part of the contract of employment of any SPCB employees. We may amend this policy at any time. SPCB employees are also reminded of their obligations under the Code of Conduct for SPCB employees.

3. What is fraud?

For fraud to take place there must be a "false pretence" (i.e. some sort of dishonesty, deception or misrepresentation) which causes a "practical result" (usually one person gaining something and another person incurring a loss, or both. There are therefore many types of dishonest conduct that can fall within the legal definition of fraud.

Some examples of fraud include:

• Identity fraud (where a fraudster steals the identity of a person or a legitimate business and uses it to obtain goods, money or services);
• Internal fraud (such as false or inflated expenses claims submitted by employees or use of confidential information by employees for personal gain);
• Invoice fraud (such as submission of false or inflated invoices by suppliers, or the impersonation by a fraudster of a genuine supplier and submission of false invoices in their name); and
• Computer fraud (the use of IT equipment to dishonestly manipulate systems, programs or data, for example by destroying, changing or substituting records).

It is important to note that a failure to do something can also be considered a "false pretence" for the purposes of fraud – for example, failing to disclose material facts in a procurement exercise.

Some of the key "red flags" that could be indicative of fraud are:

• Inappropriate relationships with suppliers, contractors or stakeholders;
• Insistence by external suppliers, contractors or stakeholders on dealing with a particular individual within the organisation;
• Discrepancies in information (such as signatures or dates) and lack of essential information;
• Requests for non-standard types of payment;
• Evidence of excessive spending by employees;
• Abnormal expenses or overtime claims or flexible working patterns;
• Undue possessiveness of records or incoming mail;
• Anomalies in record keeping;
• Pressure to circumvent or override standard control procedures.

Fraud may also be connected with bribery and corruption. For more information on SPCB's approach to bribery, please see the Anti-Bribery and Corruption Policy.

The SPCB may be prosecuted if it fails to prevent a fraud offence being committed by a person associated with it. It is a defence to this offence for the SPCB to show that it had adequate measures in place designed to prevent associated persons from committing fraud. This policy is one of a number of procedures that the SPCB has in place to prevent fraud by associated persons. Other measures include, for example, a risk assessment process to identify fraud concerns as discussed below.

All forms of fraud are prohibited and illegal. If you are unsure about whether a particular act constitutes fraud, you should raise the issue with the People Services office at the earliest possible opportunity.

4. Obligations under this policy

You must:

• Be alert to the "red flags" outlined above as indicators of fraud;
• Report any concerns or suspicions of fraud immediately using one of the appropriate channels;
• Cooperate fully with any internal reviews or investigations related to fraud concerns;
• Handle all resources and funds in the appropriate manner and in accordance with all applicable policies and procedures;
• Follow all record keeping procedures and protocols;
• Maintain professional relationships with suppliers, contractors and other stakeholders;
• Conduct yourself with integrity, honesty and transparency at all times.

You must not make any false pretence, misrepresentation, or dishonest statement and you must not conceal facts or information as a means of obtaining a personal advantage or causing loss to another.

These are hypothetical scenarios provided as a guide on forms of fraud and the list is not intended to be exhaustive. You should adopt a common-sense approach – if something seems improper, it probably is.

It is important to understand that unlawful actions taken by employees or associated persons, in contravention of the Economic Crime and Corporate Transparency Act 2023, may result in criminal liability for the SPCB for which it risks receiving an unlimited fine, in addition to serious reputational damage.

5. Training and communication

All SPCB employees will receive training on this policy during the induction process.

Training will be provided to other employees at appropriate intervals. Enhanced training may be provided to those colleagues most likely to be exposed to fraud risks.

The SPCB's zero-tolerance approach to fraud is communicated to all associated persons with whom it works at the establishment of our relationship with them, at which point a copy of this policy must be provided to them.

Any engagement with an associated person must be on the basis of a written contract which must contain provisions requiring the associated person to comply with all relevant anti-fraud laws and this policy, and to have adequate procedures in place to prevent fraud. The SPCB will not engage with any associated person who does not agree to these terms.

The relationship of the SPCB with an associated person who is not an SPCB employee must be regularly monitored throughout its duration. Any concerns which arise must be raised promptly with the People Services office.

6. Working overseas

SPCB employees and associated persons conducting business on behalf of the SPCB outside the UK may be at greater risk of being exposed to fraud or unethical business conduct. SPCB employees and associated persons owe a duty to the SPCB to be extra vigilant when conducting international business.

7. Monitoring, review and risk assessment

The People Services office within the SPCB has overall responsibility for: (i) ensuring this policy complies with our legal and ethical obligations, (ii) ensuring that all SPCB employees comply with this policy's requirements and (iii) providing advice and assistance on the application of the policy.

All SPCB employees have responsibility for implementing this policy and for monitoring its use and effectiveness.

The SPCB keeps this policy, and its risk of exposure to fraud, under regular review.

Before undertaking new activities or operations the SPCB will assess the risk of exposure to fraud and implement such controls to mitigate that risk as are appropriate.

8. How can I raise a concern about fraud?

Everyone is required to remain vigilant in preventing, detecting, and reporting fraud. If you believe or suspect that a breach of the law, this policy or any other applicable SPCB policy, procedure or guidance has occurred, or that it may occur in the future, you must report this via our Complaints procedures as soon as possible. Issues that should be reported include (but are not limited to):

• suspected or actual attempts at fraud;
• unexpected payment requests;
• abnormal expenses, overtime claims or flexible working patterns;
• management pressure to override control mechanisms;
• you learn that a third party has a reputation for fraudulent conduct;
• you notice any of the other "red flags" for fraud outlined in the "what is fraud?" section above.

Alternatively, you can report your suspicions confidentially using the procedure set out in our Public Interest Disclosure Policy.

The SPCB will support anyone who raises genuine concerns in good faith under this policy, even if they turn out to be mistaken, and no person will be subjected to detrimental treatment by the SPCB for doing so.

The SPCB will also not tolerate any attempt to retaliate against anyone who has made a notification in good faith. Any such retaliation is prohibited under this policy and will be taken seriously by the SPCB.

Further information regarding the SPCB's management of good faith notifications can be found in the Public Interest Disclosure Policy.

9. Keeping records

You must keep a written record of all expenses claims, overtime and flexible working requests. Any such requests must go through the appropriate approval process which must also be recorded.

You must also declare and record any hospitality or gifts accepted or offered. This should be done under the procedure set out in the “Acceptance of gifts and hospitality” section of the SPCB staff Code of Conduct.

You must ensure all expenses claims, including relating to hospitality, gifts or expenses incurred to third parties, are submitted in accordance with our policy on expenses. The reason for the expenditure must be specifically recorded.

All accounts, invoices, memoranda and other documents and records relating to dealings with third parties, such as members, suppliers and business contacts must be completed timeously, accurately and must record the business reason for any payments made to or by third parties.

SPCB employees must not make, approve or process any payment relating to the SPCB's business with the intention, understanding or suspicion that any part of the payment is to be used for any purpose other than that described by the records associated with the payment.

10. Breaches of the policy

Every employee and associated person acting for, or on behalf of, the SPCB is responsible for maintaining the highest standards of business conduct. Any breach of this policy will not be tolerated and is likely to constitute a serious disciplinary, contractual, and criminal matter for the person or organisation concerned.

All allegations of a breach of this policy will be investigated in accordance with the SPCB’s disciplinary procedure. Sanctions, up to and including summary dismissal, may be applied in circumstances where misconduct on the part of an SPCB employee is found. Depending on the nature of the breach, it may also be a criminal matter for, and cause serious damage to the reputation and standing of, the SPCB as well as the individual themselves.

Any associated person acting for, or on behalf of, the SPCB who breaches the law or this policy is likely to have materially breached their contract and to have their engagement with SPCB terminated with immediate effect.

In addition, any concerns regarding breach of anti-fraud law or this policy may be referred by the SPCB to law enforcement and/or regulators.

Every person to whom this policy applies will be expected to cooperate to the fullest extent possible in any investigation into suspected breaches of this policy or any related processes or procedure.