1. Introduction

Royal Museums Greenwich (‘RMG’) aims to be an honest and ethical institution, seeking to conduct its business to the highest standards of integrity and objectivity.  In order to protect its financial systems, resources and assets including the Museum’s collections and intellectual property rights and the integrity of its staff, RMG has an established policy in place to minimise the risk of fraudulent or corrupt activity.  This document sets out the framework for the assessment and management of fraud risk and the investigation and resolution of allegations of irregularity made against employees of RMG for fraud, theft, bribery or money laundering as defined in section 4 below.  It also applies to external situations where a member of staff may become aware of or suspect fraud/bribery/theft by an external third party or notifications by external parties.  This policy covers Royal Museums Greenwich (which comprises the National Maritime Museum and its subsidiary National Maritime Museum Enterprises Limited).

All persons, including contractors, suppliers, agents and intermediaries who provide services for or on behalf of RMG, are required at all times to comply with this Policy when carrying out services for or on behalf of RMG.

2. Policy

RMG takes a zero-tolerance approach to fraud, bribery, theft and corruption and is committed to acting professionally, fairly and with integrity in all its business dealings and relationships and to implementing and enforcing effective systems to counter illegal acts.

RMG has in place systems of processes and control which are aimed at minimising the risk of loss from fraud, theft, and bribery.  The Museum will take action against anyone who fails to follow these processes and controls.

Any approach to counterfraud should be in line with the Museum’s overall risk management framework.  The Operational Delivery Group is responsible for the risk management framework and for the identification and management of risk within the Museum. 

RMG will undertake a prompt and vigorous investigation of any suspected or actual fraud, bribery or theft, the details of which are set out in a separate response plan. 

Legal and/or disciplinary action will be taken in all cases where it is considered proportionate and appropriate.  Fraud, bribery and theft are considered gross misconduct and they render any offender liable for summary dismissal.  Appropriate action will be taken to recover public funds via either criminal or civil action and to ensure that the risk of similar frauds/bribery/theft is minimised.

3. Standards of behaviour

Whilst all stakeholders have a part to play in reducing the risk of fraud, trustees and senior management are ideally positioned to influence the ethical tone of the organisation and play a crucial role in fostering a culture of high ethical standards and integrity. Trustees and staff at all levels are expected to lead by example in ensuring adherence to established rules and procedures and to ensure that all procedures and practices are legally sound and honest

4. Definitions

For the purposes of this Policy, RMG defines fraud broadly to include dishonesty, theft, deliberate damage of assets, deliberate action to harm interests of RMG and other forms of irregularity, together with the statutory definitions of criminal fraud under the Fraud Act 2006, set out below.

The Fraud Act 2006 gives a statutory definition of the criminal offences of fraud and theft defining it in three clauses:

  • Fraud by false representation
  • Fraud by failing to disclose information
  • Fraud by abuse of position

Under the Bribery Act 2010 (which came into force on 1st July 2011) there are four primary offences which impact on the Museum:

  • Section 1 (Offences of bribing another person
  • Section 2 (Offences of being bribed)
  • Section 6 (Bribery of foreign public officials)
  • Section 7 (Failure of commercial organisation to prevent bribery)

Money laundering is defined as the handling or involvement with any proceeds of any crime (or monies or assets representing the proceeds of crime) with the intention of concealing or disguising those proceeds so that they may appear to be of legitimate origin.  This applies equally to possession of the proceeds of a person’s own crimes.

5. Responsibility for the Prevention and Detection of Fraud, Theft and Bribery

Prevention should be the primary focus of any Anti-Fraud/Bribery/Theft Policy as minimising the risk of fraud/bribery/theft occurring is likely to be far more effective than deterrence through investigation at a later stage.  Effective prevention comes from the establishment and maintenance of efficient financial management; an effective accounting system; consistent application of accounting procedures coupled with meaningful supervision; systems and processes to manage the Museum’s estate, collections and intellectual property rights; good management practice, and internal control.

The Accounting Officer at the Department for Digital, Culture, Media and Sport has designated the Director as the Accounting Officer for the Museum.  As such he has the responsibility for safeguarding public funds and the Museum’s assets including ensuring systems are in place for the detection of fraud/theft/bribery.  The Trustees will support the Director and the Audit Committee will monitor the Museum’s counterfraud arrangements to enable them to do this. 

However, the scale and diversity of RMG results in delegated authority to Heads of Department, who are responsible for implementing suitable internal controls to safeguard assets, finances and resources, collections and intellectual property rights.  Oversight of these controls is provided by the Operational Delivery Group, co-ordinated by the Head of Finance. 

All staff have responsibilities in tackling fraud and corruption and should specifically:

  1. Comply with the Code of Conduct
  2. Be aware of the Whistleblowing policy
  3. Report any suspicions of fraud or bribery to their line manager and / or the Head of Finance
  4. Follow procedures and guidelines, especially when handling cash and other museum assets
  5. Staff need to be particularly vigilant in accepting gifts and hospitality from third parties and should note particularly:
  6. Disclosure of any interests (personal or family) in a contract with the Museum should be disclosed to their Divisional Director before entering into any contract.  (The Governance and Museum Records Manager should be consulted if in doubt).
  7. Disclosure of all gifts in kind in excess of £25 are sent to the Director’s Personal Assistant for recording in the Gifts Register.
  8. Ensuring that all procurement is carried out in a fair and open manner in accordance with the Museum’s Procurement Manual and that preference is not given to one supplier over another as a result of undue influence.  Guidance on this can be obtained from the Procurement Manager.

See also Section 11 for responsibilities under the governance framework. 

6. Assessment and management of fraud risk

The Head of Finance, as set out in Section 11 below, is responsible for the annual fraud risk assessment, which is used to assess the organisation’s resilience to fraud, bribery and corruption and to identify any gaps.  These gaps will then form the basis of the annual fraud action plans as well as any activity to find fraud, bribery and corruption. 

7. Response plan

If a manager or director has reason to suspect fraud or corruption or have received a report, they must:

  • Listen carefully to the concerns of the person reporting the matter and treat every report received seriously
  • Make sure that concerns are given a fair hearing
  • Reassure the person or people reporting that they will not suffer because they have divulged their suspicions
  • Get as much information as possible including any notes they have made that may support the allegation.  They must not interfere with the evidence and must keep it in a safe place
  • Not carry out an investigation themselves – this may damage any formal or criminal investigation
  • Report the matter immediately to those responsible for counterfraud, namely the Head of Finance and the Director.  The matter will then be dealt with in accordance with specific procedures.

All members of staff should note that RMG would take seriously any allegations made frivolously, in bad faith, maliciously or for personal gain.

8. Recovery of loss and building on lessons learnt

The Museum will take appropriate action to recover funds and to ensure that the risk of similar frauds is minimised.

Where the Museum has suffered loss, restitution will be sought of any benefit or advantage obtained and the recovery of costs will be sought from the individual(s) responsible for fraud.  As a first step the individual concerned will be asked to make good the loss.

If the individual will not make good the loss, consideration will be given to taking civil action to recover the loss, subject to legal advice received.  It may also be appropriate to consider recovering the loss from any monies due to the individual on termination if the perpetrator is an employee.  The advice of the Museum’s legal advisers will be sought before attempting to make recovery in this way.

If a fraud does occur, the Museum will make any necessary changes to systems to ensure that similar frauds will not recur, and the Audit Committee will review the revised systems of internal control.

9. Training

Training in fraud, bribery and corruption awareness will be carried out via an e-learning module and is mandatory.

All staff electronically sign a copy of this policy to indicate that they are aware of its contents.

10. References

  • Staff Code of Conduct
  • Terms and Conditions of Service

11. Governance, Roles and Responsibilities

The Senior Management Team and Audit Committee are responsible for oversight of the Anti-Fraud Strategy of Museum which is reviewed by them every three years and the Anti-Fraud Policy is reviewed every two years.

The Fraud Risk Assessment and Action Plan are reviewed by the Operational Delivery Group on an annual basis.

Additionally the Museum has named certain individuals as responsible for the following:-

The Accounting Officer, as the person at board level for counter fraud, bribery and corruption, with specific responsibility for ensuring that the Museum complies with the Government Functional Standard on Counter Fraud and that the Anti-Fraud Strategy remains fit for purpose.

Head of Finance, as Senior Lead with day-to-day responsibility for counter, bribery and corruption with specific responsibility for updating the annual Fraud Risk Assessment and Register and preparing the Annual Fraud Action Plan; also responsible for ensuring that the Anti-Fraud Policy reflects best practice in accordance with the Government Functional Standard

Head of Finance is also the Counter Fraud Champion, liaising with all parts of the organisation should fraud or theft be identified.

The Head of Finance is responsible for ensuring completion of the Loss Register and sending this to DCMS.