BS 10501:2014

This standard BS 10501:2014 Guide to implementing procurement fraud controls is classified in these ICS categories:

• 13.310 Protection against crime
• 03.100.02 Governance and ethics

1.1

This British Standard gives guidance on mitigating and actively managing the following procurement fraud risks:

1. procurement fraud committed against the organization by its personnel or others acting on its behalf or for its benefit;

2. procurement fraud committed against the organization by another organization or individuals with the assistance of its personnel or others acting on its behalf or for its benefit;

3. procurement fraud committed against the organization by another organization or their personnel;

4. procurement fraud committed against the organization by other organizations or their personnel acting on their behalf, e.g. fraud conspiracy, bid rigging, anti-competitive activity.

1.2

This British Standard is applicable only to procurement fraud, specifically fraud offences committed in the procurement life cycle. It is not applicable to other criminal offences, such as anti-trust/competition and money laundering offences, although an organization may choose to extend the scope of its procurement fraud controls to include these other offences.

NOTE Many countries’ laws do not define procurement fraud or define fraud in different ways. This standard does not provide its own definition of fraud, but identifies the following specific fraud types where it is committed: false representation, failing to disclose information when there is a legal duty and/or contractual obligation to do so and abuse of position.

1.3

This British Standard is applicable to all types and sizes of organizations (including small and medium enterprises) in all sectors (including the public and private sectors, and the charity and voluntary sectors).