The Commission shall take appropriate measures to ensure that, when measures financed under this section are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and dissuasive administrative and financial penalties.

The Commission or its representatives and the Court of Auditors shall have the power to audit, on the basis of documents and on-the-spot, all grant beneficiaries, contractors and subcontractors who have received Union funds.

Without prejudice to paragraphs 1, 2 and 3, cooperation agreements with third countries and with international organisations, contracts, grant agreements and grant decisions resulting from the implementation of a programme under this Regulation shall contain provisions expressly empowering the Commission, the Court of Auditors and OLAF to conduct such audits and investigations, in accordance with their respective competences.