Decision No.4/16 - Decision on Strengthening Good Governance and Promoting Connectivity
A person is guilty of fraud if he is in breach of any of the sections listed in subsection (2) (which provide for different ways of committing the offence).
The sections are—
section 2 (fraud by false representation),
section 3 (fraud by failing to disclose information), and
section 4 (fraud by abuse of position).
A person who is guilty of fraud is liable—
on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);
on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).
Subsection (3)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.
A person is in breach of this section if he—
dishonestly makes a false representation, and
intends, by making the representation—
to make a gain for himself or another, or
to cause loss to another or to expose another to a risk of loss.
A representation is false if—
it is untrue or misleading, and
the person making it knows that it is, or might be, untrue or misleading.
“Representation” means any representation as to fact or law, including a representation as to the state of mind of—
the person making the representation, or
any other person.
A representation may be express or implied.
For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).
A person is in breach of this section if he—
dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and
intends, by failing to disclose the information—
to make a gain for himself or another, or
to cause loss to another or to expose another to a risk of loss.
A person is in breach of this section if he—
occupies a position in which he is expected to safeguard, or not to act against, the financial interests of another person,
dishonestly abuses that position, and
intends, by means of the abuse of that position—
to make a gain for himself or another, or
to cause loss to another or to expose another to a risk of loss.
A person may be regarded as having abused his position even though his conduct consisted of an omission rather than an act.
The references to gain and loss in sections 2 to 4 are to be read in accordance with this section.
“Gain” and “loss”— and “property” means any property whether real or personal (including things in action and other intangible property).
extend only to gain or loss in money or other property;
include any such gain or loss whether temporary or permanent;
“Gain” includes a gain by keeping what one has, as well as a gain by getting what one does not have.
“Loss” includes a loss by not getting what one might get, as well as a loss by parting with what one has.
A person is guilty of an offence if he has in his possession or under his control any article for use in the course of or in connection with any fraud.
A person guilty of an offence under this section is liable—
on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);
on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine (or to both).
Subsection (2)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.
A person is guilty of an offence if he makes, adapts, supplies or offers to supply any article—
knowing that it is designed or adapted for use in the course of or in connection with fraud, or
intending it to be used to commit, or assist in the commission of, fraud.
A person guilty of an offence under this section is liable—
on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);
on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).
Subsection (2)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.
For the purposes of—
sections 6 and 7, and
the provisions listed in subsection (2), so far as they relate to articles for use in the course of or in connection with fraud, “article” includes any program or data held in electronic form.
“article” includes any program or data held in electronic form.
The provisions are— (meaning of “prohibited articles” for the purposes of stop and search powers).
section 1(7)(b) of the Police and Criminal Evidence Act 1984 (c. 60),
section 2(8)(b) of the Armed Forces Act 2001 (c. 19), and
Article 3(7)(b) of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12));
A person is guilty of an offence if he is knowingly a party to the carrying on of a business to which this section applies.
This section applies to a business which is carried on—
by a person who is outside the reach of section 993 of the Companies Act 2006 (offence of fraudulent trading), and
with intent to defraud creditors of any person or for any other fraudulent purpose.
The following are within the reach of that section—
a company (as defined in section 1(1) of the Companies Act 2006);
a person to whom that section applies (with or without adaptations or modifications) as if the person were a company;
a person exempted from the application of that section.
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a company (within the meaning of that Order);
a person to whom that Article applies (with or without adaptations or modifications) as if the person were a company;
a person exempted from the application of that Article.
“Fraudulent purpose” has the same meaning as in that section.
A person guilty of an offence under this section is liable—
on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);
on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).
Subsection (6)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.
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In Schedule 24 to the Companies Act 1985 (punishment of offences), in column 4 of the entry relating to section 458 of that Act, for “7 years” substitute “10 years”.
In Schedule 23 to the Companies (Northern Ireland) Order 1986 (punishment of offences), in column 4 of the entry relating to Article 451 of that Order, for “7 years” substitute “10 years”.
A person is guilty of an offence under this section if he obtains services for himself or another—
by a dishonest act, and
in breach of subsection (2).
A person obtains services in breach of this subsection if—
they are made available on the basis that payment has been, is being or will be made for or in respect of them,
he obtains them without any payment having been made for or in respect of them or without payment having been made in full, and
when he obtains them, he knows— but intends that payment will not be made, or will not be made in full.
that they are being made available on the basis described in paragraph (a), or
that they might be,
A person guilty of an offence under this section is liable—
on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum (or to both);
on conviction on indictment, to imprisonment for a term not exceeding 5 years or to a fine (or to both).
Subsection (3)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.
Subsection (2) applies if an offence under this Act is committed by a body corporate.
If the offence is proved to have been committed with the consent or connivance of— he (as well as the body corporate) is guilty of the offence and liable to be proceeded against and punished accordingly.
a director, manager, secretary or other similar officer of the body corporate, or
a person who was purporting to act in any such capacity,
If the affairs of a body corporate are managed by its members, subsection (2) applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.
A person is not to be excused from— on the ground that doing so may incriminate him or his spouse or civil partner of an offence under this Act or a related offence.
answering any question put to him in proceedings relating to property, or
complying with any order made in proceedings relating to property,
But, in proceedings for an offence under this Act or a related offence, a statement or admission made by the person in— is not admissible in evidence against him or (unless they married or became civil partners after the making of the statement or admission) his spouse or civil partner.
answering such a question, or
complying with such an order,
“Proceedings relating to property” means any proceedings for— and “property” means money or other property whether real or personal (including things in action and other intangible property).
the recovery or administration of any property,
the execution of a trust, or
an account of any property or dealings with property,
“Related offence” means—
conspiracy to defraud;
any other offence involving any form of fraudulent conduct or purpose.
Schedule 1 contains minor and consequential amendments.
Schedule 2 contains transitional provisions and savings.
Schedule 3 contains repeals and revocations.
This Act (except this section and section 16) comes into force on such day as the Secretary of State may appoint by an order made by statutory instrument; and different days may be appointed for different purposes.
Subject to subsection (3), sections 1 to 9 and 11 to 13 extend to England and Wales and Northern Ireland only.
Section 8, so far as it relates to the Armed Forces Act 2001 (c. 19), extends to any place to which that Act extends.
Any amendment in section 10 or Schedule 1, and any related provision in section 14 or Schedule 2 or 3, extends to any place to which the provision which is the subject of the amendment extends.
This Act may be cited as the Fraud Act 2006.
Section 14(1)
Omit the following provisions—
in the Theft Act 1968 (c. 60)—
section 15 (obtaining property by deception);
section 15A (obtaining a money transfer by deception);
section 16 (obtaining pecuniary advantage by deception);
section 20(2) (procuring the execution of a valuable security by deception);
in the Theft Act 1978 (c. 31)—
section 1 (obtaining services by deception);
section 2 (evasion of liability by deception);
in the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.))—
section 15 (obtaining property by deception);
section 15A (obtaining a money transfer by deception);
section 16 (obtaining pecuniary advantage by deception);
section 19(2) (procuring the execution of a valuable security by deception);
in the Theft (Northern Ireland) Order 1978 (S.I. 1978/1407 (N.I. 23))—
Article 3 (obtaining services by deception);
Article 4 (evasion of liability by deception).
In the Schedule (offences referred to in section 3 of the 1952 Act), in paragraph 3 (meaning of “offence against property”), after sub-paragraph (l) insert—
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Omit section 15B (section 15A: supplementary).
In section 2(9) (definition of prohibited articles for purposes of powers to stop and search), for paragraph (d) substitute—
In section 76 (financial reporting orders: making), in subsection (3), for paragraphs (a) and (b) substitute—.
In section 78 (financial reporting orders: making in Northern Ireland), in subsection (3), for paragraphs (a) and (b) substitute—.
In section 18(1) (liability of company officers for offences by company under section 15, 16 or 17), omit “ 15, 16 or ”.
In section 20(3) (suppression etc. of documents—interpretation), omit “deception” has the same meaning as in section 15 of this Act, and ”.
In section 24(4) (meaning of “stolen goods”) for “in the circumstances described in section 15(1) of this Act” substitute “ , subject to subsection (5) below, by fraud (within the meaning of the Fraud Act 2006) ”. After section 24(4) insert—
In section 24A (dishonestly retaining a wrongful credit), omit subsections (3) and (4) and after subsection (2) insert— In subsection (7), for “subsection (4)” substitute “ subsection (2A) ”. For subsection (9) substitute—
In section 25 (going equipped for burglary, theft or cheat)—
in subsections (1) and (3) for “burglary, theft or cheat” substitute “ burglary or theft ”, and
in subsection (5) omit “ , and “cheat” means an offence under section 15 of this Act ”.
In section 11(1) (powers of Commissioners with respect to agricultural levies), for “or the Theft (Northern Ireland) Order 1978,” substitute “ , the Theft (Northern Ireland) Order 1978 or the Fraud Act 2006 ”.
In Article 18 (special time limit in case of theft), for paragraph (5)(b) substitute—.
Omit section 15B (section 15A: supplementary).
In section 19(3) (suppression etc. of documents—interpretation), omit “deception” has the same meaning as in section 15, and ”.
In section 23(5) (meaning of “stolen goods”) for “in the circumstances described in section 15(1)” substitute “ , subject to subsection (6), by fraud (within the meaning of the Fraud Act 2006) ”. After section 23(5) insert—
In section 23A (dishonestly retaining a wrongful credit), omit subsections (3) and (4) and after subsection (2) insert— In subsection (7), for “subsection (4)” substitute “ subsection (2A) ”. For subsection (9) substitute—
In section 24 (going equipped for burglary, theft or cheat)—
in subsections (1) and (3), for “burglary, theft or cheat” substitute “ burglary or theft ”, and
in subsection (5), omit “ , and “cheat” means an offence under section 15 ”.
In section 4 (punishments), omit subsection (2)(a).
In section 1 (extended scope of certain offences), in subsection (1)(d), omit “ 15 or ” (in both places).
In Article 3 (power of constable to stop and search persons, vehicles etc.), in paragraph (8), for sub-paragraph (d) substitute—
In Article 38(2) (Group A offences), omit the entries in sub-paragraph (a) relating to sections 15, 15A, 16 and 19(2) of the Theft Act (Northern Ireland) 1969. Omit Article 38(2)(b). Before Article 38(2)(c) insert—
In section 5 (supplementary), omit subsection (1).
Amend Article 39 (jurisdiction in respect of Group A offences) as follows. In paragraph (1), after “means” insert “ (subject to paragraph (1A)) ”. After paragraph (1) insert—
In Article 6 (punishments), omit paragraph (2)(a).
In Article 7 (supplementary), omit paragraph (1).
In section 4 (special time limit in case of theft), for subsection (5)(b) substitute—.
In section 1 (power of constable to stop and search persons, vehicles etc.), in subsection (8), for paragraph (d) substitute—
In section 1(2) (Group A offences), omit the entries in paragraph (a) relating to sections 15, 15A, 16 and 20(2) of the Theft Act 1968. Omit section 1(2)(b). Before section 1(2)(c) insert—
In Schedule 4 (personal licence: relevant offences), after paragraph 20 insert—
Amend section 2 (jurisdiction in respect of Group A offences) as follows. In subsection (1), after “means” insert “ (subject to subsection (1A)) ”. After subsection (1) insert—
In Article 14 (compensation orders), in paragraphs (3) and (4)(a) for “or Article 172 of the Road Traffic (Northern Ireland) Order 1981” substitute “ , Article 172 of the Road Traffic (Northern Ireland) Order 1981 or the Fraud Act 2006 ”.
In Schedule 9 (scheduled offences), in paragraph 10, at the end of sub-paragraph (d) insert “ and ” and omit paragraph (e). After paragraph 22A of that Schedule insert— In note 2 to Part 1 of Schedule 9, for “paragraph 10(a), (c) or (e)” substitute “ paragraph 10(a) or (c) or 23 ”.
Nothing in paragraph 35 of Schedule 1 affects the power of arrest conferred by section 14 of the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004 in relation to an offence partly committed before the commencement of that paragraph. An offence is partly committed before the commencement of paragraph 35 of Schedule 1 if— “Relevant event”, in relation to an offence, means any act, omission or other event (including any result of one or more acts or omissions) proof of which is required for conviction of the offence.
Section 10 does not affect the penalty for any offence committed before that section comes into force.
Nothing in paragraph 7 of Schedule 1 affects the operation of section 24A(7) and (8) of the Theft Act 1968 in relation to credits falling within section 24A(3) or (4) of that Act and made before the commencement of that paragraph.
Nothing in paragraph 18 of Schedule 1 affects the operation of section 4 of the Limitation Act 1980 in relation to chattels obtained in the circumstances described in section 15(1) of the Theft Act 1968 where the obtaining is a result of a deception made before the commencement of that paragraph.
In Schedule 12 (compensation), in paragraph 12(1), omit “ (within the meaning of section 15(4) of the Theft Act (Northern Ireland) 1969) ”. “Deception” means any deception (whether deliberate or reckless) by words or conduct as to fact or as to law, including a deception as to the present intentions of the person using the deception or any other person.
In Schedule 6 (trigger offences), in paragraph 1, omit the entry relating to section 15 of the Theft Act 1968. After paragraph 2 of Schedule 6 insert—
In section 14(2) (offences giving rise to immigration officer's power of arrest), omit paragraph “ (g)(ii) ” and “ (iii) ”, in paragraph “ (h) ”, “ 15, 16 ” and paragraphs (i) and (j). After section 14(2)(h) insert—.
Paragraph 1 of Schedule 1 does not affect any liability, investigation, legal proceeding or penalty for or in respect of any offence partly committed before the commencement of that paragraph. An offence is partly committed before the commencement of paragraph 1 of Schedule 1 if— “Relevant event”, in relation to an offence, means any act, omission or other event (including any result of one or more acts or omissions) proof of which is required for conviction of the offence.
Nothing in paragraph 11 of Schedule 1 affects the operation of section 23 of the Theft Act (Northern Ireland) 1969 in relation to goods obtained in the circumstances described in section 15(1) of that Act where the obtaining is the result of a deception made before the commencement of that paragraph.
Nothing in paragraph 22 of Schedule 1 affects the operation of Article 18 of the Limitation (Northern Ireland) Order 1989 in relation to chattels obtained in the circumstances described in section 15(1) of the Theft Act (Northern Ireland) 1969 where the obtaining is a result of a deception made before the commencement of that paragraph.
After paragraph 3 of Schedule 7 (relevant offences) insert—
Section 14(2)
In relation to an offence committed before 2 May 2022, the references to the general limit in a magistrates’ court in sections 1(3)(a), 6(2)(a), 7(2)(a), 9(6)(a) and 11(3)(a) are to be read as references to 6 months.
Nothing in paragraph 30 of Schedule 1 affects the operation of Part 7 of the Terrorism Act 2000 in relation to an offence under section 15(1) of the Theft Act (Northern Ireland) 1969 where the obtaining is a result of a deception made before the commencement of that paragraph.
Nothing in paragraph 6 of Schedule 1 affects the operation of section 24 of the Theft Act 1968 in relation to goods obtained in the circumstances described in section 15(1) of that Act where the obtaining is the result of a deception made before the commencement of that paragraph.
Nothing in paragraph 12 of Schedule 1 affects the operation of section 23A(7) and (8) of the Theft Act (Northern Ireland) 1969 in relation to credits falling within section 23A(3) or (4) of that Act and made before the commencement of that paragraph.
Section 14(3) Title and number Extent of repeal or revocation Theft Act 1968 (c. 60) Sections 15, 15A, 15B and 16. In section 18(1), “15, 16 or”. Section 20(2). In section 20(3), ““deception” has the same meaning as in section 15 of this Act, and”. Section 24A(3) and (4). In section 25(5), “, and “cheat” means an offence under section 15 of this Act”. Theft Act (Northern Ireland) 1969 (c. 16 (N.I.)) Sections 15, 15A, 15B and 16. Section 19(2). In section 19(3), ““deception” has the same meaning as in section 15, and”. Section 23A(3) and (4). In section 24(5), “, and “cheat” means an offence under section 15”. Theft Act 1978 (c. 31) Sections 1 and 2. Section 4(2)(a). Section 5(1). Theft (Northern Ireland) Order 1978 (S.I. 1978/1407 (N.I. 23)) Articles 3 and 4. Article 6(2)(a). Article 7(1). Nuclear Material (Offences) Act 1983 (c. 18) In section 1(1)(d), “15 or” (in both places). Criminal Justice Act 1993 (c. 36) In section 1(2), the entries in paragraph (a) relating to sections 15, 15A, 16 and 20(2) of the Theft Act 1968. Section 1(2)(b). Theft (Amendment) Act 1996 (c. 62) Sections 1, 3(2) and 4. Criminal Justice (Northern Ireland) Order 1996 (S.I. 1996/3160 (N.I. 24)) In Article 38(2), the entries in sub-paragraph (a) relating to sections 15, 15A, 16 and 19(2) of the Theft Act (Northern Ireland) 1969. Article 38(2)(b). Theft (Amendment) (Northern Ireland) Order 1997 (S.I. 1997/277 (N.I. 3)) Articles 3, 5(2) and 6. Terrorism Act 2000 (c. 11) In Schedule 9, paragraph 10(e). In Schedule 12, in paragraph 12(1), “(within the meaning of section 15(4) of the Theft Act (Northern Ireland) 1969)”. Criminal Justice and Court Services Act 2000 (c. 43) In Schedule 6, in paragraph 1, the entry relating to section 15 of the Theft Act 1968. Asylum and Immigration (Treatment of Claimants, etc.) Act 2004 (c. 19) In section 14(2), paragraph (g)(ii) and (iii), in paragraph (h), “15, 16” and paragraphs (i) and (j).