11.1 Forms of Fraud
N 35/2018 STA - 11.1.1Frauds are broadly classified into Internal and External Frauds which are defined below:
- a)Fraud carried out by individual(s) employed by the Licensed Person is called Internal Fraud; and
- b)Fraud committed by an external party against the business of the Licensed Person is referred to as External Fraud.
- 11.1.2Fraud normally includes the following acts, although the list is not exhaustive:
- a)Misappropriation;
- b)Misrepresentation:
- •Misrepresentation of Financial Statements; and
- •Misrepresentation of Non-Financial Statements.
- c)Corruption:
- •Bribery; and
- •Illegal gratuities.
- d)Misconduct:
- •Breach of internal policies and procedures; and
- •Breach of applicable Laws, Rules, Regulations, Notices and the Standards.
- e)Any other deliberate deception for unlawful personal gain.
- 11.1.3Throughout this chapter, the terminology “Fraud” includes all types of frauds mentioned under Paragraphs 11.1.1 and 11.1.2 of this Chapter.
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