Definition: Fraud against the Communities' financial interests
General concept
"Fraud against the Communities' financial interests" means any act or omission contrary to Community law committed either intentionally or through gross negligence in respect of a duty of care, which has as its object or effect:
- a diminution of the Communities' own resources or other revenue, or
- the misappropriation, wrongful retention or misapplication of monies paid by the Communities.
Fraud against the Communities' financial interests shall apply both to revenue and expenditure provided for by the general budget and to all other revenue and expenditure managed by or on behalf of a Community institution.
Fraud against the Communities' financial interests includes the following acts:
- the preparation, supply, use or presentation of false, incorrect or incomplete documents or statements where information is to be furnished prior to the grant of a subsidy or the receipt of monies,
- failure to furnish information to the relevant authorities in relation to any change in the circumstances giving rise to the grant of a subsidy or the receipt of monies,
- misappropriation or dissipation of funds,
- knowingly using aid or subsidies obtained on the basis of incorrect or incomplete statements or other misleading acts.
Source:
European Union, Council Act of 26 July 1995 drawing up the Convention on the protection of the European Communities' financial interests, OJ C 316, 27.11.1995
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