DAOD 7025-0, Fraud Prevention and Management

1. Introduction

Date of Issue: 2008-08-15

Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).

Approval Authority: Chief of Review Services (CRS)

Enquiries: Director of Special Examinations and Inquiries (DSEI)

2. Definition

fraud (fraude)

Fraud means any act or omission constituting an offence under section 380 of the Criminal Code or paragraph 117(f) of the National Defence Act.

3. Policy Direction


3.1 The DND and CAF have a legal responsibility to manage DND programs and CAF activities in a manner consistent with public expectations for the careful and responsible management of public resources.

3.2 The Canadian Forces Provost Marshal (CFPM) has the primary responsibility for conducting police investigations in respect of fraud in the DND and the CAF. Other federal, provincial or municipal police forces may also be involved as appropriate.

Policy Statement

3.3 The DND and the CAF shall not tolerate fraud within the DND or the CAF and shall:

  1. aggressively pursue suspected fraud at any level; and
  2. adopt measures to prevent its occurrence and review these measures as required.


3.4 The DND and CAF shall develop and maintain the following:

  1. a comprehensive, effective and coordinated framework for dealing with all aspects of fraud;
  2. a fraud risk management program to increase the awareness of fraud in the DND and the CAF;
  3. orders and directives outlining the responsibilities of DND employees and CAF members who:
    1. suspect or witness fraud; or
    2. receive reports from subordinates or others concerning fraud
  4. policies, processes and procedures for DND employees and CAF members to report suspected fraud without fear of reprisal or harassment (see DAOD 7024-0, Internal Disclosure of Wrongdoing in the Workplace and the Public Servants Disclosure Protection Act (DND employees only));
  5. an effective and coordinated criminal investigations regime in respect of fraud; and
  6. a special examinations and inquiries capability to conduct independent administrative reviews in respect of fraud (see DAOD 7026-1, Special Examinations and Inquiries).

4. Authorities

Authority Table

4.1 The following table identifies the authorities associated with the implementation of this policy:

The … has the authority to …

Assistant Deputy Minister (Finance and Corporate Services) (ADM (Fin CS))

  • effect recoveries, on behalf of the DND and the CAF, of losses due to fraud.


  • issue orders, polices and directives to ensure that a comprehensive, effective and coordinated framework is in place in the DND and the CAF for dealing with fraud; and

  • approve the design, development and implementation of the DND and CAF fraud risk management program.


  • conduct police investigations into allegations or complaints of fraud.


  • conduct independent administrative reviews into allegations or complaints of fraud.

5. References

Acts, Regulations, Central Agency Policies and Policy DAOD

Other References

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