Fraud is a deliberate act of deception intended for personal gain or to cause a loss to another party (Article 3 of Directive (EU) 2017/1371 and Article 1 of the Convention on the protection of the European Communities’ financial interests). DG ECHO considers fraud when aid is prevented from reaching its intended beneficiaries due to the action or inaction of ECHO’s Partner, its staff or its implementing partner.

The establishing of measures from the very beginning can help to prevent and detect possible fraudulent activity and reduce the operational, financial and reputational damages. Already at proposal stage, your organisation should assess the risk of fraud when deciding to submit the proposal. In case of submission, you shall, to the extent possible, identify the risks and mitigating measures. Strong oversight and control mechanisms during the implementation of the project are of great relevance. This information shall be provided in sections 7.5 (assumptions and risks) and 7.6 (contingency measures) of the Single Form.

Partners must inform the European Commission (ECHO-REPORTFRAUD@ec.europa.eu) immediately of any fraud detected in the management of the EU Contribution and the measures taken.

Any person or institution, victim or witness of mismanagement or fraud in the framework of DG ECHO-funded activities can also contact ECHO-REPORTFRAUD@ec.europa.eu.

For such reporting, please fill in the Fraud Allegation Reporting Form (see below). The information provided will be handled in full confidentiality to protect the rights of those involved. DG ECHO handles personal data in accordance with Regulation (EU) 2018/1725.

You may also refer the matter to the authorities and bodies designated by the applicable legislation, in particular to the European Commission Anti-fraud Office (OLAF).

DG ECHO may take precautionary measures following the report of a suspected fraud to protect the EU’s financial interests, including payment suspension under Art. 12.1 of the General Conditions for Humanitarian Aid Contribution Agreements (HACA). These measures are only applied if the suspicions are very severe and/or relate to fraud schemes beyond an isolated incident or if senior management of the (implementing) partner is suspected to be involved.

Once the investigation or the audit is concluded and fraud is confirmed, DG ECHO will disallow the established amount of the fraudulent activity in accordance with the relevant legal provisions.

In addition, International Organisations whose staff have committed fraud (including if committed by their Implementing Partners) may be subject to provisions of the HACA’s general conditions, namely: reduction of EU contribution (Art. 20.3), suspension of the time-limit for payment (Art. 12.1), suspension of the agreement (Art. 12.3), or termination of the agreement (Art. 13).

These additional measures are only taken in very serious cases following a careful assessment by DG ECHO and in line with Article 2.3 of the HACA’s general conditions.

The following factors play a role when determining if any of the provisions above will be applied:

• The pro-active and timely communication by the International Organisation with DG ECHO and/or OLAF of the allegation and during the investigation.
• The measures in place regarding the prevention, detection and response to fraud and how they were implemented in this specific case.
• The risk of additional fraud incidents (e.g. if the scope of the investigation is very narrowly defined).