The Commission shall ensure that, when actions financed under this Programme are implemented, the financial interests of the Union are protected by: (a) the application of preventive measures against fraud, corruption and any other illegal activities, (b) effective checks, (c) the recovery of the amounts unduly paid and, (d) the application of effective, proportional and dissuasive penalties, if irregularities are detected. 2. For the purposes of paragraph 1, the Commission shall act in accordance with Regulation (EC, Euratom) No 2988/95, Regulation (Euratom, EC) No 2185/96 and Regulation (EC) No 1073/1999. 3. The Commission shall reduce, suspend or recover the amount of financial assistance granted for an action if it finds irregularities, including non-compliance with the provisions of this Regulation or the individual decision or the contract or agreement granting the financial assistance in question, or if it transpires that, without Commission approval having being sought, the action has been subjected to a change which conflicts with its nature or implementing conditions. 4. If time limits have not been observed or if only part of the allocated financial assistance is justified by the progress made with implementing an action, the Commission shall request the beneficiary to submit observations within a specified period. If the beneficiary does not give a satisfactory answer, the Commission may cancel the remaining financial assistance and demand repayment of sums already paid. 5. Any undue payment shall be repaid to the Commission. Interests shall be added to any sums not repaid in good time under the conditions laid down by the Financial Regulation. 6. For the purposes of this Article, ‘irregularity’, shall mean any infringement of a provision of Union law, or any breach of a contractual obligation resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the Union or budgets managed by the Union by an unjustified item of expenditure.

The Commission shall ensure that, when actions financed under this Programme are implemented, the financial interests of the Union are protected by: (a) the application of preventive measures against fraud, corruption and any other illegal activities, (b) effective checks, (c) the recovery of the amounts unduly paid and, (d) the application of effective, proportional and dissuasive penalties, if irregularities are detected. 2. For the purposes of paragraph 1, the Commission shall act in accordance with Regulation (EC, Euratom) No 2988/95, Regulation (Euratom, EC) No 2185/96 and Regulation (EC) No 1073/1999. The Commission shall reduce, suspend or recover the amount of financial assistance granted for an action if it finds irregularities, including non-compliance with the provisions of this Regulation or the individual decision or the contract or agreement granting the financial assistance in question, or if it transpires that, without Commission approval having being sought, the action has been subjected to a change which conflicts with its nature or implementing conditions. If time limits have not been observed or if only part of the allocated financial assistance is justified by the progress made with implementing an action, the Commission shall request the beneficiary to submit observations within a specified period. If the beneficiary does not give a satisfactory answer, the Commission may cancel the remaining financial assistance and demand repayment of sums already paid. Any undue payment shall be repaid to the Commission. Interests shall be added to any sums amounts not repaid in good time under the conditions laid down by the Financial Regulation.