What is Fraud and Corruption ?

Throughout Europe, many definitions of fraud and corruption exist. EHFCN adopted the definition of the Swiss Institute of Comparative Law, which states the following:

The definition of fraud includes two important aspects, the intentional action and the resulting advantages. Fraud poses a serious risk to all financial sectors. In the insurance sector, both insurers and policyholders bear the costs. Losses caused by fraudulent activities affect insurers' profits and potentially their financial soundness. Fraud may also reduce consumer and shareholder confidence.

The Institute further distinguishes two aspects of corruption, whether it occurs in the public sector and in the private sector.

‘Passive corruption in the public sector occurs whenever a public official, directly or indirectly, intentionally or in circumstances where it should have been known to him or her, requests or receives any undue advantage for himself or herself or for a third person, or accepts an offer or a promise of such advantage, in order to act or refrain from acting in the exercise of his or her official functions'.

'Directly or through an intermediary, requesting or receiving an undue advantage of any kind, or accepting the promise of such an advantage, for oneself or a third party, while in any capacity directing or working for a private sector entity, in order to perform or refrain from performing any act, in breach of one's duties'.