Europaudvalget 2018
KOM (2018) 0553
Offentligt
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EUROPEAN
COMMISSION
Brussels, 3.9.2018
SWD(2018) 384 final
COMMISSION STAFF WORKING DOCUMENT
Implementation of Article 325 TFEU by the Member States in 2017
Accompanying the document
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND
THE COUNCIL
29th Annual Report on the Protection of the European Union's financial interests - Fight
against fraud - 2017
{COM(2018) 553 final} - {SWD(2018) 381 final} - {SWD(2018) 382 final} -
{SWD(2018) 383 final} - {SWD(2018) 385 final} - {SWD(2018) 386 final}
EN
EN
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T
ABLE OF
C
ONTENTS
Table of Contents ....................................................................................................................... 1
Table of Figures ......................................................................................................................... 2
1
1.1
1.2
1.3
1.4
2
2.1
2.1.1
2.1.2
2.2
2.3
2.4
3
3.1
4
4.1
4.2
5
5.1
5.1.1
5.1.2
5.1.3
5.2
5.3
5.3.1
5.3.2
5.4
6.
6.1.
6.1.1.
Overview of the measures taken by Member States in 2017 ....................................... 3
Legislative measures
.................................................................................................. 6
Administrative measures
........................................................................................... 6
Organisational measures
........................................................................................... 6
Operational measures
................................................................................................ 7
Cross-cutting anti-fraud initiatives and measures by Member States .......................... 7
Progress on the development of National Anti-Fraud Strategies in 2017 .................... 7
Background to NAFS....................................................................................................
9
Guiding principles
........................................................................................................ 9
Measures to enhance transparency and fight corruption and anti-conflict of interest in
public procurement..................................................................................................... 10
Measures against financial and organised crime ........................................................ 15
Other measures ........................................................................................................... 18
Anti-fraud measures covering both Revenue and Expenditure sectors ..................... 21
Revenue and Expenditure .......................................................................................... 21
Anti-fraud measures in Revenue by the Member States ............................................ 22
Fight against customs fraud ....................................................................................... 22
Fight against tax evasion and VAT fraud .................................................................. 30
Anti-Fraud Measures by Member States - Expenditure ............................................. 31
Measures covering several shared management sectors ............................................ 31
Agriculture, Fisheries, Cohesion policy.....................................................................
31
Agriculture, Fisheries, Cohesion, AMIF, FEAD and EGF
........................................ 35
Cohesion policy, fisheries, AMIF, EGF, FEAD
......................................................... 36
Agriculture ................................................................................................................. 39
Cohesion policy and Fisheries ................................................................................... 44
Cohesion policy
.......................................................................................................... 44
Fisheries
..................................................................................................................... 52
Measures covering several shared management funds and centralised management 53
Additional measures reported by Member States ...................................................... 55
Belgium ...................................................................................................................... 55
Federal Public Service - Finance (Anti-Fraud Cell) 2 additional measures: ............. 55
1
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6.1.2.
6.1.3.
6.2.
6.2.1.
6.2.2.
6.3.
6.4.
6.5.
7.
8.
8.1.
8.2.
8.3.
8.4.
8.5.
8.6.
8.7.
8.8.
8.9.
8.10.
8.11.
ERDF Wallonia: ......................................................................................................... 55
Belgium's Anti-fraud Coordination Service (AFCOS/CAF) and Interdepartmental
Committee for Coordinating the Fight against Economic Fraud (CICF): ................. 55
Bulgaria ...................................................................................................................... 56
Operational measure................................................................................................... 56
Organisational measure .............................................................................................. 56
Croatia ........................................................................................................................ 56
Slovenia ...................................................................................................................... 57
United Kingdom ......................................................................................................... 57
Training on the Irregularity Management System organised by the Member States . 58
Case studies reported by Member States ................................................................... 58
Bulgaria ...................................................................................................................... 58
Belgium ...................................................................................................................... 59
Greece ........................................................................................................................ 60
Finland........................................................................................................................ 60
Croatia ........................................................................................................................ 61
Hungary ...................................................................................................................... 62
Italy ............................................................................................................................ 62
Lithuania .................................................................................................................... 63
Latvia.......................................................................................................................... 64
Netherlands ................................................................................................................ 65
Romania ..................................................................................................................... 65
T
ABLE OF
F
IGURES
Figure 1: Distribution of reported measures by type.....................................................................4
Figure 2: Measures shown by area addressed and stage/s in the anti-fraud cycle ........................5
Figure 3: Number of measures reported by area ...........................................................................5
Figure 4: Cross-cutting v Sectoral .................................................................................................6
Figure 5: Cross-cutting vs Sectoral by Member State...................................................................6
Figure 6: Sectoral measures: expenditure .....................................................................................7
Figure 7: NAFS: State of play .......................................................................................................9
Figure 8: Training sessions organised by Member States in 2017 ..............................................59
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M
EASURES TAKEN BY
M
EMBER
S
TATES
1
O
VERVIEW OF THE MEASURES TAKEN BY
M
EMBER
S
TATES IN
2017
Member States reported a significant number (73) of measures in 2017 on the protection of the
EU’s financial interests and the fight against fraud, reflecting the
adoption of the bulk of Union
legislation for the new programming period 2014-2020. Member States were invited to report a
maximum of three (most important) anti-fraud measures. This analysis therefore gives a good
overview of trends and priorities in the anti-fraud measures implemented by Member States,
but it is not exhaustive. The number of measures effectively reported would be higher, if one
considers that Member States may report 'single' or 'package' measures. The latter usually
encompasses a number of instruments adopted at the same time. Taking into individual account
the 'package' measures, the number of reported initiatives rises to 111.
Some Member States also reported additional measures (for a total of 10). They are detailed in
chapter 6 of the present document.
Eleven Member States also reported case studies in various sector of the protection of the EU
financial interests. They are collected in chapter 7.
Four different types of measures were reported and analysed: legislative, administrative,
organisational and operational. The highest number of reported measures is of an organisational
nature, but there is a relative balance among all the types of initiatives reported by Member
States, as showed in Figure 1.
Figure 1: Distribution of reported measures by type
Member States’ measures covered the entire anti-fraud
cycle, but focussed in particular on
fraud detection (77% of the measures) and prevention (76%), mostly in the area of shared
3
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management and control of EU funds (49%), followed by measures against financial crime
(including money laundering
–
22%).
Figure 2 shows how the various measures are distributed per area and stage of the anti-fraud
cycle concerned.
Figure 2: Measures shown by area addressed and stage/s in the anti-fraud cycle
Prevention
Detection
Investigation
Recovery
Total N° of
m easures
Public procurement
Financial crime (incl. money laundering)
Organised crime
Corruption
Conflict of interest
Fraud definition
AFCOS
Whistleblower
Customs / TOR / illicit trade
Shared management and control of EU funds
Antifraud or anticorruption strategy
Other
TOTAL
10
11
8
8
12
6
7
8
9
24
9
17
55
75%
12
14
10
10
10
7
6
9
11
25
9
15
56
77%
4
10
8
3
3
4
2
3
9
9
4
6
24
33%
6
5
3
2
4
3
2
3
6
11
3
3
18
25%
15
16
10
10
15
8
9
9
15
34
11
21
73
100%
%
Figure 3 breaks down the same information by Member State and by area concerned.
Figure 3: Number of measures reported by area
Mem ber
State
No of
m easures
Public
procurem ent
Financial crim e
(incl. m oney
laundering)
Organised
crim e
Corruption
Conflict of
interest
Fraud
definition
AFCOS
Whistleblow er
Shared
Antifraud or
Custom s / TOR m anagem ent
anticorruption
and control of
/ illicit trade
strategy
EU funds
Other
AT
BE
BG
HR
CY
CZ
DK
EE
FI
FR
DE
GR
HU
IE
IT
LV
LT
LU
MT
NL
PL
PT
RO
SK
SI
ES
SE
UK
TOTAL
% of total
2
3
3
3
3
3
1
2
3
2
3
3
3
1
3
3
3
3
1
3
3
3
3
2
3
3
3
2
73
100%
1
2
3
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
3
1
1
2
3
1
1
1
1
1
1
1
1
2
2
2
1
1
2
2
2
1
1
2
2
1
1
1
1
1
1
1
1
2
1
2
1
3
1
2
1
2
1
1
1
1
1
1
2
2
1
11
15%
1
20
27%
2
1
2
1
2
1
2
1
2
1
1
2
1
1
1
1
2
1
2
1
2
1
1
1
2
1
1
2
9
12%
3
1
2
1
9
12%
1
15
21%
1
2
1
1
1
1
2
2
2
1
1
2
2
3
2
36
49%
1
15
21%
16
22%
10
14%
1
10
14%
2
15
21%
1
8
11%
It should always be kept in mind that each measure can target more areas.
The majority of measures were sectoral (77%), but those of a horizontal natural still represent
almost a fourth (23%), as showed in Figure 4.
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Figure 4: Cross-cutting v Sectoral
Figure 5 breaks down this information by Member State.
Figure 5: Cross-cutting vs Sectoral by Member State
Mem ber State
Horizontal
Sectoral
2
3
3
3
2
1
1
3
2
3
2
3
1
3
2
2
3
3
2
3
1
2
2
2
2
56
Total
2
3
3
3
3
3
1
2
3
2
3
3
3
1
3
3
3
3
1
3
3
3
3
2
3
3
3
2
73
AT
BE
BG
HR
CY
CZ
DK
EE
FI
FR
DE
GR
HU
IE
IT
LV
LT
LU
MT
NL
PL
PT
RO
SK
SI
ES
SE
UK
TOTAL
1
3
1
1
1
1
1
1
2
1
1
3
17
5
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Among the sectoral measures reported, about 41 relate to various expenditure sectors and 15 to
revenue. Figure 1 shows that the majority of adopted measures in expenditure sectors relate to
Cohesion policy and Agriculture.
Figure 6: Sectoral measures: expenditure
1.1
Legislative measures
Member States reported twenty legislative measures (of which 8 as part of a package
of measures). The majority of these acts are either horizontal or referred to the
expenditure sectors, while only a few refer exclusively to revenue. Legislative
measures reported by Member States mainly relate to the definition of competence and
powers (7 measures each) or financial penalties (5). Their adoption is mainly meant to
clarify or consolidate existing rules (11), but also to remedy flaws in the systems (6)
and to enforce the rules in line with developments in EU law (6).
1.2
Administrative measures
Thirty administrative measures have been reported by Member States (of which 19 as
part of a package of measures) and they were mainly addressing 'monitoring/desk
checks' and 'irregularities reporting' (13 measures each). The purpose of such measures
was to enhance existing measures (17) and to clarify or consolidate existing rules (13).
1.3
Organisational measures
Organisational measures were the most reported by Member States: 33 (of which 18
adopted as part of a package of measures). Mainly they addressed 'fraud awareness
raising' initiatives (14 measures), or 'inter-agency cooperation', specification
concerning the 'competence' of the bodies involved or 'general trainings' (12 each).
Mostly they resulted neutral in terms of resources (19), but in a number of cases (10),
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organisational measures adopted produced an increase of resources for the bodies
concerned.
1.4
Operational measures
Twenty-eight operational measures have been reported by Member States (of which 17
as part of a package of measures), mainly referring to the introduction/use of 'risk
indicators' (16) and of 'IT tools' (14). Also the deployment of 'web reporting/hotline'
for fraud detection was reported (5). Some measures aimed at better 'structuring the
cooperation with law enforcement or judicial authorities (11 times). The expected
results of such measures range from enhancing the information flaw (in 22
occurrences), to better targeting checks (14), enhancement of coordination (11) and
cooperation (9), targeting of investigations (9) and enhanced ex-post (9 ) and ex-ante
controls (8).
2
C
ROSS
-
CUTTING ANTI
-
FRAUD INITIATIVES AND MEASURES BY
M
EMBER
S
TATES
In 2017, 17 horizontal measures were adopted by Member States.
The present chapter will focus on the horizontal measures adopted by the Member
States in 2017, which were reported via the questionnaire.
Paragraph 2.1 deals with the development of National Anti-Fraud Strategies,
considering its horizontal impact on the systems of protection of the EU financial
interests in Member States. It is mainly an update of information already provided in
the same Commission Staff Working Document accompanying the PIF Report 2016.
Paragraphs from 2.2 to 2.4 focus on specific topics/themes addressed by the measures
adopted by Member States.
2.1
P
ROGRESS ON THE DEVELOPMENT OF
N
ATIONAL
A
NTI
-F
RAUD
S
TRATEGIES
1
IN
2017
By the end of 2017, a total of ten Member States had adopted a National Anti-Fraud
Strategy and transmitted it to the Commission
2
. The Commission invites all other
Member States to follow such example and establish NAFS based on the Guidelines
prepared (in collaboration with Member States experts).
In reply to the PIF questionnaire 2017, two more Member States informed the
Commission of having adopted a NAFS, but this has not been communicated yet.
Another Member State informed the Commission of having adopted a sectorial
antifraud strategy (Customs)
3
.
1
The Commission invites Member States to consult the General Guidelines on National Anti-Fraud Strategies
when starting the procedure of establishing a NAFS.
2
The ten Member States are:
Bulgaria, Croatia, Czech Republic, France, Greece, Hungary, Italy, Latvia,
Malta
and
Slovakia. Austria, Lithuania
and
Portugal
replied to the questionnaire that they have adopted a
National AntiFraud Strategy, but it is either a sectoral strategy or they have not communicated it officially to
the Commission. Furthermore,
Romania
indicated that their strategy was applicable to a former programming
period and are currently preparing a new one. Besides,
Belgium, Estonia, Luxembourg
and the
Netherlands
reported that the procedure to establishing a NAFS is on-going.
3
See footnote 2.
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Figure 7: NAFS: State of play
A National Anti-Fraud Strategy allows for structuring the fight against fraud affecting
EU and national budgets at Member State level. It helps identifying vulnerabilities to
fraud in the systems, assessing the main fraud risks, setting and implementing
adequate responses; evaluating progress made, adapting the response to the evolution
of the fraud trends and the resources available, and ensuring the involvement of all
relevant stakeholders in particular by means of enhanced collaborative and
coordinated actions. A NAFS also helps to ensure harmonisation of the response to
fraud risks throughout the country, especially in the case of a decentralised
management structure.
The benefits of a National Anti-Fraud Strategy include:
Ensuring the effective and efficient protection of the EU financial interests (i.e.
improving the prevention, detection and fight against corruption and any other
illegal activities affecting the financial interests of the Union);
Setting out a better working framework upon which the institutions involved in
the process of implementation and control of EU funds could work together to
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improve administrative capacity and determine more precisely the roles and
responsibilities of the institutions involved. This would ensure effective co-
ordination of legislative, administrative and operational activities of the
institutions;
Achieving a higher degree of recovery of unduly spent funds from the budget of
the European Union and contributing to proportionate and dissuasive penalties
in accordance with the applicable law.
2.1.1
B
ACKGROUND TO
NAFS
The new Multiannual Financial Framework applicable to the programming period
2014-2020 has been strengthened as regards fraud risk assessment, fraud prevention
and detection. For shared management the sectoral Regulations require Member
States:
to put in place effective and proportionate anti-fraud measures, taking into
account the risks identified,
to take the necessary steps to prevent, detect and sanction fraud and
irregularities effectively and
to reimburse irregular amounts to the EU budget.
However, going beyond the immediate regulatory requirements and embedding these
anti-fraud measures in a National Anti-Fraud Strategy (NAFS) is encouraged in order
to ensure better monitoring of the fight against fraud detrimental to the financial
interests of the EU and that of the Member States, as well as to ensure homogenous
and effective practices, especially where the organisational structures are
decentralised.
2.1.2
G
UIDING PRINCIPLES
In the last three years, the COCOLAF Fraud Prevention Group focused on various
aspects of the NAFS topic. First, as a pilot project, the working group in 2014
prepared the 'Guidelines for National Anti-Fraud Strategies for European Structural
and Investment Funds (ESIF)'. These guidelines laid down the foundation for drafting
a National Anti-Fraud Strategy, however with a limited scope on expenditure in the
field of ESIF. In the following year, another working group was set up to target the
practical side of NAFS. As a result, in 2015 the document called 'Practical steps
towards drafting of a National Anti-Fraud Strategy' was issued together with a
practical tool in the form of an xls file that can be used to carry out the assessment of
the state of play with regard to the current measures in place, taking into account all
the four stages of the anti-fraud cycle.
The current guidelines represent an update of the NAFS guidelines issued in 2014. The
working group in 2016 aimed at revising as well as enlarging the previous guidelines
for the NAFS so that it become a horizontal document covering all shared
management expenditure: European Structural and Investment Funds (ESIF),
Agriculture, Home Affairs Funds (AMIF/ISF) and Fund for European Aid to the Most
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Deprived (FEAD). In addition, the guidelines were enriched with a number of concrete
examples of Member States' practice that have proven to be successful.
2.2
M
EASURES
TO ENHANCE TRANSPARENCY AND FIGHT CORRUPTION AND ANTI
-
CONFLICT OF INTEREST IN PUBLIC PROCUREMENT
Seven measures were reported which addressed the issue of corruption in public
procurement.
Czech Republic - Public procurement and anti-corruption Act
Beyond the procurement directives (national level), the Public Procurement Act provides
mandatory evidence on the ownership structure of suppliers through:
Obligations of suppliers-public limited liability companies to issue exclusively
uncertificated shares,
the obligations of the contracting authorities to check the actual owners according to the
law on selected measures against the legalisation of proceeds from criminal activities
and terrorist financing.
The objective of Law 134/2016 was to increase transparency in the area of public procurement
as a whole and to improve the prevention and detection of fraud and corruption in public
procurement.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Public procurement;
Corruption
Single
Legislative
N
Definition of a
specific topic
To remedy flaws
H
Estonia - Public procurement Act
Estonia
adopted a new legislative framework for public procurement to transpose the EU
Directives and to address the issues related to public procurement, considered the most
problematic area of expenditure.
The Public Procurement Act was passed on 14 June 2017 and entered into force on 1st
September 2017. This Act provides for the rules of public procurement, the rights and
obligations of persons involved in public procurement, the rules of exercising state supervision
and administrative supervision, review procedure, and the liability for violation of this Act.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reason for measure
Horizontal /
sectoral
Detection
Public procurement;
Corruption; Conflict
of interests
Single
Legislative
N
Competence; powers;
definition of a
To enforce the rules in line
specific topic; other with developments in EU
administrative
law
penalties
H
Spain
–
Electronic registry of anti-corruption trials
In 2017,
Spain
implemented a data repository of corruption judicial proceedings in the country
and made it available to the public online (accessible on the website of the General Council of
the Judiciary).
The measure aims at centralising and making available to the public the information on Spanish
criminal proceedings relating to corruption offences (both proceedings that have concluded and
those under way), broken down by type of offence, geographical area, etc. This information is
public and can be taken into account by the competent authorities in their risk assessments.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Reasons for measure
Corruption;
Transparency
Single
Operational
N
IT tools
Enhanced information
flow; Improved knowledge
of corruption
H
Cyprus
–Measures
and policies to combat corruption
In many cases, the fraud is an outcome of corruption. It is very important to have a unified and
holistic approach to the corruption phenomenon and concrete foundations for joint actions of
the entire state machine and the private sector to fight corruption and protect the EU financial
interests.
In this view,
Cyprus
put forward a package of measures, recommended by the Ministry of
Justice and Public Order and include among others the following:
The setting of a National Anti- Corruption Strategy
Drafting and filing a Bill in parliament on Whistleblowers protection
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Drafting and filing a Bill in parliament that regulates contacts on lobbying and the
creation and maintenance of a register for the registration of persons involved in public
decision-making executive and /or legislative power
Drafting of bill to set up an Independent Authority Against Corruption
The bill was approved by the Parliament on March 30 2018.
The organisational measures aimed at enhancing inter-agency cooperation and the
simplification of procedures, providing also to relevant staff general, but also, fraud awareness
trainings.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Corruption;
Conflict of
interest;
Whistleblower;
Antifraud or
anticorruption
strategy
Legislative
N/A
Powers; financial penalties;
criminal sanctions (new sanctions)
to clarify or consolidate
existing rules
Detection
Investigation
and
prosecution
Package
Inter-agency cooperation; general
trainings; fraud awareness
trainings; simplification of
procedures
H
Organisational
N
Increased resources
Malta
–
Addressing Fraud and Corruption in public procurement
Malta
took steps to address Fraud and Corruption in Public Procurement. With the aim to
enhance good governance, transparency and public accountability, in 2015, the Director of
Contracts established the Compliance and Monitoring Unit (CMU). In May 2017 the CMU
prepared a report entitled "Addressing Fraud and Corruption in Public Procurement" with the
intent to highlight the various measures being adopted by the Department of Contracts to
combat fraudulent activities in public procurement.
Specific guidelines were adopted to clarify and consolidate existing rules.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reason for measure
Horizontal /
sectoral
Detection
Public procurement;
Antifraud or
anticorruption
strategy
Single
Administrative
N
Other: The Department
of Contracts, as a
regulator, has
embarked on a
to clarify or consolidate
mission to further
existing rules
enhance good
governance,
transparency and
public accountability.
H
Romania - Public procurement
Romania
adopted a package of measures in the area of public procurement. Legislative,
administrative, organisational and operational measures were put forward:
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the adoption of a new legislative act in the field of ex-ante control of the award of
public-procurement contracts/framework agreements (Emergency Order of the
Government of Romania No 98/2017 of 14 December 2017 concerning the ex-ante
control function in the process for the award of public-procurement
contracts/framework agreements, sector-specific procurement contracts/framework
agreements and concession contracts for works and services, published in Official
Gazette of Romania No 1004 of 18.12.2017);
the issuing/updating of operational procedures at management authorities level and,
namely, internal operational procedures at the level of some managing authorities,
describing in detail the specific activities regarding the verification of public
procurement through the prism of identifying possible conflicts of interest and the
incidence of fraud indicators; Ministerial Order on designating persons responsible for
completing and updating integrity forms (MADR - Ministry of Agriculture and Rural
Development);
the drawing up of guidelines for contracting authorities concerning conflicts of interest
in public-procurement processes, like the Guidelines for contracting authorities
concerning conflicts of interest in public-procurement processes (ANAP);
Guidelines+code of ethics, own preventive financial control, public procurement
(ANAP).
The Establishment of a conflict-of-interest prevention mechanism in the procedure for
the award of public-procurement contracts - on 20 June 2017, the Prevention System,
established by Law No 184/2016 on the establishment of a conflict-of-interest
prevention mechanism in the procedure for the award of public-procurement contracts,
became operational making obligatory the completion of the Integrity Form;
Reorganisation of MADR bodies in order to apply the regulations regarding prevention.
The underlying aim in promoting this legislative act is to enhance the efficiency and efficacy of
ex-ante control, with a direct impact on the legality and quality of award procedures and on the
creation of an appropriate competitive environment on the public-procurement market.
Furthermore, dedicated rules governing the ex-ante control of intended contractual amendments
will obviate the need to conclude addenda to public/sectoral procurement contracts or
concessions which could distort competition and transparency.
Anti-fraud
cycle steps
Prevention
Single /
Package
New /
Amendment
N
Public procurement
Detection
Investigation
and
prosecution
Recovery and
sanction
Public
procurement
Package
Organisational
N
Reorganisation of existing bodies;
competence; Other
Neutral on resources
Administrative
N/A
To clarify or consolidate
existing rules
H
Reason for measure /
expected results
To remedy flaws
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Legislative
Operational
A
IT tools (ARACHNE)
Enhanced information flow
13
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Romania
–
Anti- corruption strategy
Romania
adopted a Package of (legislative, administrative, organisational, operational)
measures to implement the National Anti-Corruption Strategy 2016-2020 approved by
Government Decision No 583/2016, to establish the main levers and means for
implementing/monitoring such strategy. The following measures were adopted:
In order to implement the National Anti-Corruption Strategy 2016-2020 approved by
Government Decision No 583/2016, the Ministry of the Interior issued Interior Minister
Order No 72 of 15 June 2017 approving the Integrity Plan for the implementation of the
National Anti-Corruption Strategy at Ministry of the Interior level over the period 2017-
2020.
The Minister of Justice Order No 1361/C/2017 approving the Methodology for
Monitoring and Implementing the National Anti-Corruption Strategy; Plan for
preventing irregularities and fraud at AFIR level and analysis of appropriateness of
implementation of ISO 37001:2016 - Anti-Corruption Management System; Plan for
anti-fraud measures/control at MA ACOP level using the instrument recommended by
the European Commission
–
EGESIF 14 0021-00.
At MA ROP level, a first fraud-risk self-assessment was carried out in 2017 and an
action plan put in place, within the framework of the fraud-risk assessment group GERF
(Grupul de evaluare a riscului de frauda). This is a first step in fraud-risk self-
assessment at the level of the directorates involved. The risks will be monitored and
tracked by means of a risk tracking sheet, and will be correlated with the general
register of risks identified at MA ROP level.
Operational measures were taken at MA ROP level in order to implement the National
Anti-Corruption Strategy 2016 2020 approved by Government Decision No 583/2016.
These measures are aimed at:
o
enhancing institutional transparency by posting on the website information of
public interest relating to the activities of the Project Payments and Accounting
Directorate;
o
consolidating administrative control mechanisms;
o
drawing up the progress report on implementation of the National Anti-
Corruption Strategy nsolidating administrative control mechanisms.
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reason for measure /
expected results
To clarify or consolidate
existing rules
Horizontal
/ sectoral
Anti-fraud
cycle steps
Prevention
Legislative
N
Anti-fraud or anti-corruption
strategy
Detection
Anti-fraud or
anti-corruption
strategy
Administrative
Package
Organisational
N/A
Monitoring/desk checks; other
other
H
A
Other
Neutral on resources
Operational
A
Other
Enhanced information flow;
enhanced ex-post controls
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2.3
M
EASURES AGAINST FINANCIAL AND ORGANISED CRIME
Czech Republic
–
Working Group on the setting up of the EPPO
The
Czech Republic
set up a working group to ensure the functioning of the European
Prosecutor’s Office in the Czech Republic
- following the adoption of Council Regulation No
2017/1939 of 12 November 2017 and Directive (EU) 2017/1371 of the European Parliament
and of the Council of 5 July 2017 a working group was set up by the relevant Czech authorities
to ensure that the necessary steps are taken to enable this office to function in future. The
members of this expert group include state prosecutors from the Supreme Prosecutor’s
Office,
the High Public Prosecutor's Offices and officials from the Ministry of Justice.
The European Prosecutor’s Office will in future be one of the key bodies involved in the
prosecution of criminal offences against the financial interests of the Union. It is, therefore, in
the interest of both the European Union and the Czech Republic to create the conditions for its
proper functioning and to address the necessary issues related to modifications of national law
and the logistic aspects of the functioning of those prosecutors in the Czech Republic.
Anti-fraud cycle
steps
Prevention
Financial crime;
Organised crime;
Detection
shared management
and control of EU
funds; antifraud or
Investigation
anticorruption
and prosecution
strategy
Recovery and
sanction
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Single
Organisational
N
Reorganisation of
existing bodies;
competence; inter-
agency cooperation
increased resources
H
Czech Republic
–
Appointment of a liaison officer at EUROPOL
The
Czech Republic
appointed a liaison officer of the Czech Customs Administration at
EUROPOL.
According to the Czech authorities, the appointment of a liaison officer of the Czech Customs
Administration at EUROPOL will reinforce the successful functioning of the law enforcing
entities within the remit of the Czech Customs Administration in criminal proceedings. Closer
cooperation with EUROPOL should, inter alia, contribute to improving conditions for a
successful protection of the Union’s financial interests.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Investigation
and prosecution
Financial crime;
Organised crime
Single
Organisational
N
Inter-agency
cooperation
increased resources
H
Greece - Reorganisation of the structures of the Ministry of Finance
On November 23 2017, Presidential Decree No 142/2017, Chapter VII, Articles 79-83
(Government Gazette, Series I, No 181/23.11.2017) was adopted.
The legislative measure established the responsibilities of the Special Secretariat for the
Financial and Economic Crime Unit (SDOE), further to Law 4336/2015. Section A - Strategic
Planning (Article 79(3)(a)) of the Central Service - Directorate for Strategic Planning and
Investigation Planning, the Section for Control of National and EU Expenditure and the Anti-
Fraud and Corruption Section of the Operational Directorates of Attica (Article 82(4)(c)(i) and
(ii)) and Macedonia (Article 83(4)(b)(i)) have responsibilities that relate to combating fraud and
corruption.
The purpose of the Special Secretariat for the Financial and Economic Crime Unit (SDOE) is to
expose and combat outbreaks of financial crime, control capital movements and the possession
and movement of prohibited items and substances, check the implementation of provisions on
national and EU subsidies and grants, expose cases of corruption and fraud and check the
implementation of provisions on the protection of public property, with the aim of preventing
infringements and illegal acts, ensuring voluntary compliance and prosecuting liable offenders.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure
Horizontal /
sectoral
Financial crime;
Customs/TOR/illicit
trade; shared
Investigation
management and
and prosecution
control of funds
Detection
Recovery and
sanction
Single
Legislative
A
Competences
To clarify or consolidate
existing rules; other
H
Poland
–
Amendment of criminal code and other acts
Poland
adopted on 10 February 2017 The Act amending the Criminal Code and other Acts.
The Act makes VAT fraud subject to specific regulations laid down in ordinary criminal law. It
focuses on preventing and combating crime which involves the creation of incorrect/inaccurate
documents relating to circumstances that could be relevant for the purpose of determining
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public-law liabilities. This gives rise to VAT fraud with a very significant impact on
government finances.
The bill aims at introducing effective instruments to combat VAT fraud, reducing the scale of
VAT fraud and increasing budget revenue from VAT.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Investigation
and prosecution
Recovery and
sanction
Financial crime;
organised crime
Single
Legislative
A
definition of a
specific topic
To clarify or consolidate
existing rules; to remedy
flaws
H
Lithuania
–
Annual expert meetings of the Baltic States of Tax and Customs Crime
Investigation Services
This measure is partially based on the Action Plan of the Baltic States Customs Cooperation for
2017-2019 and Europol EMPACT Excise Operational Action Plan.
These meetings focus on cooperation between investigation units on sharing and exchange of
best practices and specific information on the latest trend-based initiated criminal
investigations.
Baltic investigation services are operating at the external EU border where they face challanges
in fighting excise fraud due to extreme price difference in neighbouring countries. Therefore,
better cooperation among respective law enforcement services is crucial in order to implement
the protection of the EU financial interests and better prevention of economic fraud.This
measure is included into EMPACT Excise Operation Action Plan as Operational Action 1.6
‘Baltic states
focusing on organized crime groups smuggling excise goods via numerous
metmethods’ is led by Lithuania.
This measure seeks to bring together experts from the participating member states (EE, LV,
LT, SE, PL) as well as Europol and Frontex to share intelligence on trends, active OCGs and
current and emerging modus operandi. Participants share their experience to identify and
propose ways in which these threats can be tackled. Intelligence gathered will also be used for
future operational activities.
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Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Organisational
Financial crime;
organised crime;
Investigation
Customs/TOR/illi
cit trade
and
prosecution
Detection
A
Competence; inter-agency co-
operation
Increased resources
S
Package
Flagging practice; risk indicators;
increased number of checks;
structured cooperation with law
enforcement
Enhanced cooperation,
information flow; targeting
of checks and investigations
Operational
A
S
Slovenia - Prioritising detection and investigation of economic crime and strengthening
interdepartmental cooperation
In
Slovenia,
on the basis of guidelines and instructions from the Minister for the Interior
regarding the drafting of the Police work plan for 2017, the police prioritised work to detect
and investigate economic crime and criminal corruption, focusing on cases that hurt the budget
and EU funds and on crimes where the suspects are holders of public office, and enhancing
cooperation between specialised and joint investigation task forces.
Through this measure the police is seeking to increase the detection and clearance rate for
crimes that cause harm to the EU, partly by encouraging state bodies responsible for control
and monitoring to recognise and report suspected criminal offences to the enforcement
authorities.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
IT tools; Web
reporting/hotline;
structured
cooperation with law
enforcement;
structured
cooperation with
judicial authorities;
cooperation with
other control or
monitoring bodies
(other)
Reasons for measure /
expected results
Horizontal /
sectoral
Public procurement;
financial crime; fraud
definition;
interdepartmental
Investigation
and prosecution cooperation (other)
Detection
Single
Operational
A
enhanced coordination,
cooperation and
information flow;
targeting of checks and
investigations
S
2.4
O
THER MEASURES
Latvia
–
Anti fraud campaing #FraudOff!
In 2017,
Latvia
launched a series of measures to increase public awareness about fraud and
reporting fraud, as well as to increase knowledge and expertise of people who work on
prevention, detection, investigation and prosecution of fraud and recovery and sanctions. In the
end those measures help to protect EU financial interests.
The following initiatives were conducted:
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1. a national antifraud campaign, denominated #FraudOff! This campaign unites the state
institutions and companies and aims at increasing public awareness about fraud and
damages which it causes to national and EU budget
4
.
2. Implementation of the Project Hercule III: in 2017 two seminars were organised ("Tools
for combating fraud and implementation of the National Anti-Fraud strategy" and
"Methods of criminal investigation relating to fraud, corruption and other offences
affecting the EU") and one study visit to Croatia, Zagreb.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Public procurement;
financial crime;
corruption; conflict of
interests; fraud
definition; AFCOS;
Detection
Whistleblower;
Customs/ToR/Illicit
trade; Shared
Investigation
management and
and prosecution
control of EU funds;
Antifraud or
Recovery and
anticorruption
sanction
strategy
Prevention
Single
Organisational
N
Inter-agency
cooperation; General
trainings; Fraud
awareness trainings
Increased resources
S
4
http://atkrapies.lv/
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Sweden
–
Legislation about OTS checks and OLAF investigations
The legislation allows competent authorities to assist Olaf in its on the spot checks and
inspections in Sweden. The legislation has been put in place to live up to requirements set out
in Regulation 2185/96 and Regulation 883/2013.
The legislation allows competent authorities to assist Olaf in its on the spot checks and
inspections in Sweden.
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Reasons for measure
Investigation
and prosecution
Recovery and
sanction
Customs/TOR/illicit
trade; shared
management and
control of funds
Single
Legislative
N
Competences; powers
To enforce the rules in line
with developments in EU
law
H
Sweden
–
guidelines on anti-fraud strategy
The Swedish council for the protection of EU:s financial interests in Sweden (SEFI-council)
has formed a working group focusing on drafting a practical document to be used as
administrative support for Governmental authorities managing EU-funds in Sweden. The
objective is to support and strengthen the antifraud measures of the authorities as well as to
enable them to enact strategies/measures in the anti-fraud area.
Through this measure and others, Sweden ensures an ongoing awareness of the importance of
anti-fraud measures within governmental authorities managing EU-funds in Sweden. Such
measures also fit within the general crime-preventive measures that the Swedish government is
engaged in.
Anti-fraud cycle
steps
Prevention
AFCOS;
whistleblower;
shared managemnet
and control of EU
funds
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
S
Organisational
N
Competence; inter-
agency cooperation
Neutral on resources
H
Sweden - The annual programme of the SEFI-council
During 2017 The Swedish council for the protection of EU:s financial interests in Sweden
(SEFI-council) among other things has facilitated experience-sharing regarding anti-fraud
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measures, especially drafting antifraud policies, thereby enabling small authorities to learn
from and make use of progress made by larger governmental authorites. The SEFI council has
also hosted thematic seminars on a number of anti-fraud issues to increase awareness and
knowledge among Swedish authorities.
Through this measure, or measures like these, Sweden ensures an ongoing awareness of the
importance of anti-fraud measures within governmental authorities managing EU-funds in
Sweden. Such measures also fit within the general crime-preventive measures that the Swedish
government is engaged in.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
AFCOS; whistleblower
P
Organisational
A
inter-agency
cooperation; fraud
awareness trainings
Neutral on resources
H
3
3.1
A
NTI
-
FRAUD MEASURES COVERING BOTH
R
EVENUE AND
E
XPENDITURE SECTORS
R
EVENUE AND
E
XPENDITURE
Italy
–
Combating fraud affecting the EU budget
To combat the most serious and dangerous forms of crime, in 2017,
Italy
took measures to
combine administrative and penal initiatives which consist, once the fraud has been identified,
in reconstructing the illicit financial flows and seizing the assets of criminal organisations with
the eventual aim of dismantling them.
The initiatives adopted provide for:
specific ‘operating plans’ for combating VAT fraud, and the embezzlement, improper
request and/or receipt of expenditure disbursed by the EU for the 2007/2013 and
2014/2020 programmes;
with regard to VAT, special inspection campaigns aimed at identifying taxable entities
that, while having carried out various transactions with suppliers and/or customers,
failed to submit the necessary VAT declarations and information.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Investigation
and prosecution
Shared management
and control of EU
funds; VAT fraud
Single
Operational
N
Risk indicators;
structured
cooperation with
judicial authority
Enhanced coordination;
enhanced information
flow; targeting of checks;
targeting of invstigations;
enhanced ex-post controls
S
4
4.1
A
NTI
-
FRAUD MEASURES IN
R
EVENUE BY THE
M
EMBER
S
TATES
F
IGHT AGAINST CUSTOMS FRAUD
Denmark
–
Internal guidance on OWNRES communications
For 2017,
Denmark
reported having drawn up internal guidance on the procedure used by the
Danish tax authorities (SKAT) to ensure that EU own resources with regard to customs duty
are paid correctly and in accordance with the applicable regulation. This guidance is a general
description of rules and procedures governing the overall payment of EU own resources where
customs duty is concerned. The guidance is constantly updated and is regarded as an important
tool for ensuring uniform administration and compliance with the rules applicable in this area.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Smuggling/Illicit
trade
Single
Administrative
N
Monitoring/desk
checks
to clarify or consolidate
existing rules
S
Portugal
–
Increase of minimum fine for failure to declare the amount of cash carried
On December 2017,
Portugal
adopted Law No 114/2017 approving the State budget for 2018
and amending the General Law on Tax Offences [Regime Geral das Infrações Tributárias]
approved by Law No 15/2001 of 5 June 2001. Through this legislative act, it increased the
competent authority’s powers and capabilities to control cash movements; improved
declaration compliance; and provided a better picture and greater awareness of cash movements
and the main players involved.
The minimum fine applicable was increased from EUR 250 to EUR 1000 in cases of
infringement of travellers’ legal obligation to declare
the amount of cash carried in line with the
Financial Action Task Force (FATF-GAFI) Recommendations.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure
Horizontal /
sectoral
Detection
Financial crime;
organised crime;
customs/ToR/illicit
trade
Single
Legislative
A
Financial penalties
To clarify or consolidate
existing rules
S
Portugal - Transport and declaration for a customs-approved treatment or use
Portugal
also approved a package of meausres (administrative and operational) concerning
transport and declaration for a customs-approved treatment or use, allowing for risk analysis
using electronic data processing techniques with the aim of identifying and assessing the risks
and establishing counter-measures required.
This package of measures made it possible to implement risk assessment measures that are
integrated in a national risk management and anti-fraud strategy5.
In this way, it is expected that ex-ante controls will result improved, as will coordination and,
the necessary information flow.
Anti-fraud
cycle steps
Prevention
Administrative
Detection
Financial crime;
organised crime;
customs/ToR/illi
cit trade
A
Monitoring/desk checks; on the spot
to enhance existing measure
checks
S
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Package
Enhanced coordination;
enhanced information flow;
enhanced ex-ante controls
Operational
A
IT tools
S
Netherlands
–Undervaluation
of import declarations
To contrast financial crime, namely the low value approach in import declarations, particularly
in the area of textiles from China and other countries of origin and given the major financial
interests and the problems identified in this area, the
Netherlands
updated in 2017 an
organisational measure aimed at refining risk indicators in the area, to better target
investigations and checks in a framework of increased controls.
5
This initiative follows-up on the previous year establishing a National Risk Assessment Centre (see SWD(2017)
270 final, page 35.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Customs/ToR/illicit
trade
Single
Organisational
A
enhanced coordination,
cooperation, informatoin
Risk indicators;
increased number of flow and ex-ante controls;
targeting of checks and
checks
investigations
S
Recovery and
sanction
Portugal - National customs risk assessment
Portugal
linked up the entire goods-entry cycle to the national risk database (entry summary
declaration, declaration for temporary storage and customs declaration). To handle this risk-
analysis, assessment and mitigation work relating to safety, security and financial fraud, a
National Risk Assessment Centre became fully operational; open 16 hours a day, six days a
week, with increased staff numbers. This measure targeted the prevention and detection stages
of the anti-fraud cycle in the areas of financial crime, organised crime, smuggling/illlicit trade.
Anti-fraud
cycle steps
Prevention
Financial crime
(including money
laudering);
organised crime;
smuggling/illicit
trade
Organisational
A
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Detection
Reorganisation of existing bodies;
competence; simplification of
procedures
Neutral on resources
S
Package
IT tools; flagging practice; risk
indicators; increased number of
checks
Enhanced coordination,
cooperation & information
flow; targeting of checks &
investigations
Operational
A
S
Finland
–
Customs plan to tackle the grey economy (2016-2020)
Finnish Customs has drafted an internal plan to tackle the grey economy, which contains 23
different projects for the period 2016 to 2020. Customs’ own plan can be divided into plans for
legislative cooperation, organisational plans and the development and targeting of operations.
The aim is to effectively combat the grey economy and the damage to society and businesses
caused by unfair competition. Customs’ efforts to tackle the grey economy will also focus on
combating and investigating fraud affecting the EU budget.
The action programme to tackle the grey economy and financial crime more effectively was
established by a Government decision in principle. The extra funding provided in this
framework has all been channelled into human resources in different parts of the Customs
administration. In the period 2012-2017, Customs recovered EUR 214 million for the State on
the basis of company audits and documentary checks. Meanwhile, the social impact of
Customs’ campaign to tackle financial crime totalled EUR 167 million. The number of cases of
tax fraud uncovered and investigated by Customs in 2012-2017 also increased by over 105%
(from 529 to 1086).
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In particular, an export procedure is laid down for fuel consignments to be transported by sea.
This is completed while the ship is still in Finnish territory. Similarly, a movement of goods for
export under suspension of duty that is open in the EMCS system is completed when the ELEX
system issues an electronic confirmation of export to the EMCS system. The fuel consignment
can then be transported on EU territory without customs supervision. Tax problems of fictitious
exports are also associated with other products subject to excise duty.
The proposed measures also encompass the deployment of specific tools to encourage
whistleblowing, targeted trainings to raise fraud awareness and the enhancement of structured
cooperation with law enforcement.
Anti-fraud
cycle steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
to clarify or consolidate
rules; to remedy flows; to
enforce the rules in line with
developments in EU law
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Prevention
Legislative
A
Other
Financial crime;
whistleblowers;
customs/ToR/Illi
Investigation
cit trade
and
prosecution
Detection
Recovery and
sanction
Administrative
Package
Organisational
N/A
A
Operational
A
to clarify or conslidate
Monitoring/desk checks; on the spot
existing rules; to enhance
checks; investigation; irregularities
existing measure; cross-
reporting
cutting measure
inter-agency cooperation; general
trainings; fraud awareness
Neutral on resources
trainings
enhanced cooperation,
information flow, ex-ante
Web reporting/hotline; structured
and ex-post controls;
cooperation with law enforcement
targeting of checks and
investigations
S
Belgium
–
Policy plan of the General Administration of Customs and Excise
–
Strategic and
operational priorities for 2015-2019
The Policy Plan of the Belgian General Administration of Costums and Excise
–
Strategic and
operational priorities for 2015-2019 includes a specific chapter dedicated to Combating Fraud /
Fiscal Competencies: Customs Fraud - Antidumping and countervailing duties; and within this
chapter, a measure is devoted to the exploitation of OLAF reports on fraud.
In addition to import duties, additional anti-dumping and countervailing duties are levied on
imports of products manufactured in low-wage countries to prevent these products from
arriving on the EU market at dumped prices and distorting trade. If fraud is suspected, OLAF
sends out MA notices instructing the Member States to launch investigations. Actions: use the
information from OLAF on fraud committed. When the anti-dumping and countervailing duties
are published, checks will be carried out pro-actively to put a swifter end to any abuses.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Administrative
Detection
Investigation
and
prosecution
Financial crime;
Anti-Fraud or
Anti-corruption
Strategy
A
Monitoring/desk checks;
investigation
to clarify or consolidate
existing rules
S
Package
Enhanced coordination;
targeting of checks; targeting
of investigations
Operational
A
IT tools, Risk indicators
S
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France - pilot data mining project in the area of customs and tax fraud
French Directorate-General for Customs and Indirect Taxation (DGDDI) set up a pilot data
mining project in the area of customs and tax fraud. Its aim is to detect new patterns of customs
fraud. An experiment has been under way since summer 2017 to test these tools on cases of
industrial use in the area of customs clearance. On the basis of the results obtained, it will be
considered whether to extend the process to other areas. Checks made as part of this experiment
enabled customs infringements to be identified.
The first stage of the experiment concerned fraud relating to customs clearance. On the basis of
the relevance of the results obtained, it will be considered whether to extend the process to
other areas (in particular taxation) and whether to develop the work of the datamining unit.
The aim of the experiment is:
to test the appropriateness of the new tools for mass data analysis in order to introduce
new targeting methods. In the first stage, these analyses will enable ex-post checks to be
assessed (ex-post 1 and investigations). However, in time, selection profiles can be
introduced in the targeting engine for declarations in the customs clearance application,
on the basis of the patterns of fraud detected.
to have, in time, a data-scientist unit with the capacity to cooperate with the customs
analysts in the Risk Analysis and Targeting Department (SARC) in all their areas of
competence (pre-clearance, clearance and taxation).
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Anti-fraud
cycle steps
Administrative
Organised crime;
Customs /ToR
Investigation
/illicit trade
and
prosecution
Detection
N
On the spot checks; investigation;
irregularity reporting; other
Other
S
Package
Organisational
N
Competence
Increased resources
S
France - strategy for better reporting of customs fraud in the Anti Fraud Information System
(AFIS)
OLAF stresses the need to improve the quantity and quality of information exchanged through
the Customs Information System (SID) and the Customs Investigation Files Identification
Database (FIDE). Their aim is to coordinate the activities of these authorities and of OLAF in
AFIS. To this end, the Directorate-General for Customs and Indirect Taxation (DGDDI)
established a specific strategy aimed at:
i.
ii.
organising the activities of these departments for better reporting;
guiding the activities of the customs services in using risk analysis applications in AFIS
(directory of messages on the status of containers and imports, exports and transit).
26
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In the end, this measure follows on from those highlighted in the OLAF PIF 2015 questionnaire
(2nd and 3rd measures relating to national supervision of the OWNRES-Web system and to
follow-up of cases of mutual assistance).
Anti-fraud
cycle steps
Prevention
Administrative
Financial crime;
organised crime;
Customs /ToR
Investigation
/illicit trade
and
prosecution
Detection
N
Investigation; irregularity reporting;
other
Single /
Package
New /
Amendment
Reasons for measure /
expected results
To clarify or consolidate
existing rules; to enhance
existing measure; cross-
cutting measure, multi-
agency measure/ measure
with impact on various
bodies
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
S
Package
Organisational
N
Other
other
S
Germany - Establishment of a General Customs Directorate
The General Customs Directorate (GZD) was established by the Law on the reorganisation of
the Customs administration of 3 December 2015. The Federal supreme Authority has its
headquarters in Bonn and maintains additional service seats at a large number of locations in
the federal territory, including those of the former federal directorates and the BWZ in
Hamburg, Potsdam, Cologne, Neustadt A.d.W., Nuremberg and Münster.
The GZD is structured in nine directorates with departments, units and working areas. Its tasks
are carried out by a total of approximately 7,000 employees.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Reason for measure
Detection
Investigation
and prosecution
Recovery and
sanction
Customs / ToR / Illicit
trade
Single
Organisational
N
Reorganisation of
existing bodies
Increased resources
S
Spain - Amendment of the General Regulation on the Application of Taxes
In 2017, Spain amended the General Regulation on the Application of Taxes by Royal Decree
1070/2017 of 28 December 2017. Although this Regulation refers to taxes in general, it will be
particularly important in terms of its application to the protection of the financial interests of
the EU.
It supplements, develops and clarifies the legal rules establishing the possibility of assessing the
debt and pursuing recovery measures, always in accordance with tax legislation, even in cases
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in which there is a criminal complaint, without the need to suspend the administrative
procedure of assessment and collection until there is a criminal judgment.
Preferential application of EU legislation is ensured when the procedure relates to customs
debts, in two specific aspects:
Existence of co-debtors, where it is specified that notification of the debt shall be valid
for each of them provided their right to be heard has been guaranteed and regardless of
whether there are other debtors;
The right to be heard in national proceedings, which must, in all cases, be carried out in
accordance with EU legislation, given the multitude of national provisions which cause
confusion with EU provisions.
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Anti-fraud cycle
steps
Customs / ToR / Illicit
trade
Single
Legislative
A
recovery
To clarify or consolidate
existing rules
S
Recovery and
sanction
Italy
–
Post Clearance Audit (PCA)
Italy implemented a new Post-Clearance Audit method, based on audit methodologies. The
method encompasses checks on economic operators for compliance with national and EU
regulations and obligations in all sectors associated with the customs authority.
This new Post-Clearance Audit method, based on an approach consisting of inspections
concerning the entire activity of the selected economic operator, examining its administration,
organisation and internal audit procedures and/or systems. The purpose of this kind of audit is
both preventive and punitive, to ensure that provisions of the Customs Code and of the related
EU tax law are properly fulfilled.
The adoption of this Post-Clearance Audit method involved the issuing of administrative
directives, based on EU guidelines, as well as the territorial breakdown of checks to be
performed at local level based on a prior central analysis that identified the sectors most at risk.
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Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Administrative
Detection
Investigation
and
prosecution
Customs / ToR /
Illicit trade
N
Monitoring/desk checks; On the
spot checks; Audit checklist;
To enhance existing measure
Investigation; Irregularities
reporting; Penalty; Recovery; Other
S
Package
Organisational
A
General trainings; fraud awareness
trainings
Neutral on resources
S
Recovery and
sanction
Operational
A
Risk indicators; increased number
of checks
Enhanced information flow;
enhanced ex-post controls
S
Slovenia
–
Combating tax fraud and tax evasion and preventing aggressive tax planning
Slovenia adopted the Act Amending the Tax Procedure Act (ZDavP-2J) (addition of a new
Chapter III.B entitled ‘Rules on reporting and the exchange of country-by-country reports’). On
that basis the Rules on the implementation of the Tax Procedure Act have been amended as
well. As regards the exchange of financial account information, the Act Amending the Tax
Procedure Act (ZDavP-2I) and the Rules on the implementation of the Tax Procedure Act.
Anti-fraud
cycle steps
Prevention
Single /
Package
New /
Amendment
A
Reasons for measure /
expected results
to enforce the rules in line
with developments in EU law
to enhance existing measure
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Competences; Definition of a
specific topic
Monitoring/desk checks
Legislative
Detection
Customs/TOR/illi
Investigation
cit trade; shared
management and
and
control of EU
prosecution
funds; Other
Recovery and
sanction
Administrative
A
Package
Organisational
N
fraud awareness trainings
Neutral on resources
Enhanced information flow;
Targeting of checks;
Targeting of investigations;
Enhanced ex-ante controls;
Enhanced ex-post controls
S
Operational
A
IT tools; Risk indicators;Increased
number of checks
Greece
–
Organisation, structure and operation of the Coordination Operational Centre
Greece adopted a Decision by the Independent Authority for Public Revenue laying down
matters regarding the organisation, structure and operation of the Coordination Operational
Centre (SEK) set up by Article 6(1) of Law 4410/2016
6
.
The Coordination Operational Centre (SEK) operates as a coordination centre between the
departments to tackle the smuggling of products subject to excise duty. It recommends strategic
plans to deal with smuggling in alcohol, oil and tobacco products, operational plans for joint
inter-departmental or inter-State actions, legislative initiatives, measures to improve the
6
Government Gazette, Series I, No 141
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effectiveness and quality of checks and investigations carried out by the prosecution authorities
involved, assesses incoming information, etc.
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Investigation
and prosecution
Customs / ToR / Illicit
trade
Single
Administrative
N
On the spot checks;
Investigation
To clarify or consolidate
existing rules; to enhance
existing measure
S
4.2
F
IGHT AGAINST TAX EVASION AND
VAT
FRAUD
Belgium
–
Optimisation of the exchange and use of tax information
Belgium reported about a cooperation protocol between the Anti-Fraud Coordination Service
(ACOS/CAF) within the Federal Public Service - Finance (FOD Financiën) and the Financial
Intelligence Processing Unit (CFI) to optimise the exchange and use of tax information. This
Protocol aims to optimise the spontaneous and reciprocal exchange of relevant information; the
use of data which may be exchanged by according the CFI direct access to certain databases of
the Federal Public Service - Finance in order to combat money laundering and the financing of
terrorism.
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Financial crime
Single
Organisational
A
Inter-agency
cooperation
Increased resources
S
Latvia
–Tax
fraud prevention
Latvia reinforced its legislation to fight against tax fraud through:
1) Amendments of Road traffic Law- with aim to prevent fraud with VAT in trade of
vehicles and developed accompanying Cabinet regulation;
2) Amendments in Law Of the Enterprise Register of the Republic of Latvia - which
allows Enterprise register to refuse to register enterprise if the information from tax
authority has been received that this company has a tax risk.
The adopted measures:
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ensure reinforced control of vehicles from risk group,
improve fight against VAT fraud,
improve competition and restricts unregistered commercial activity in the field of
vehicle trade.
Second amendments were made to restrict the possibility for taxpayers who are unfair to pursue
their economic activity, thus protecting the budget, including the VAT field.
Amendments to the Road traffic Law: CSDD can register (with conditions stipulated in Law)
the ban on expropriation for a period of 15 days at the same time as the vehicle registration, and
the information about the registered vehicle is transferred to the SRS, which initiates or does
not initiate tax administration measures;
Amendments in Law Of the Enterprise Register of the Republic of Latvia which allows
Enterprise register to refuse to register enterprise if the information from tax authority has been
received that this company has a tax risks.
Anti-fraud
cycle steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Prevention
Legislative
N/A
Competences; powers
to remedy flaws; other
S
Financial crime;
other
Package
To clarify or consolidate
existing rules;Cross-cutting
measure, multi-agency
measure/ measure with
impact on various bodies
Administrative
N
Monitoring/desk checks
S
5
5.1
5.1.1
A
NTI
-F
RAUD
M
EASURES BY
M
EMBER
S
TATES
- E
XPENDITURE
Measures covering several shared management sectors
Agriculture, Fisheries, Cohesion policy
Bulgaria
–
Legal framework for determining financial corrections in case of irregularities
The Regulation on indicating irregularities constituting grounds for making financial
corrections and the percentage indicators for determining the amount of financial corrections
under the requirements of the European Union Structural and Investment Funds Management
Act was adopted by Council of Ministers Decree No 57 of 28 March 2017. A clear legal
framework for determining financial corrections in cases of irregularities has been put in place.
Under Article 143(1) of Regulation No 1303/2013, Member States are responsible for
investigating irregularities and for making the financial corrections required and pursuing
recoveries. Under Article 122(2) of Regulation No 1303/2013, Member States shall prevent,
detect and correct irregularities and recover amounts unduly paid. As formulated, the Member
States’ obligation has at its centre the obligation of proving an irregularity has occurred and
recovering all amounts unduly paid, with the goal of restoring the situation that would have
existed had the irregularity not occurred.
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The Council of Ministers Decree No 57 of 18 March 2017 specifies the types of irregularities
constituting a breach of the applicable law through the beneficiary’s acts or omissions
and
which result or may result in damage to funds from the European structural and investment
funds, and which constitute grounds for making a financial correction under Article 70(1)(9) of
the European Union Structural and Investment Funds Management Act, as well as the
minimum and maximum rates of the percentage indicators for financial corrections set for
irregularities pursuant to Article 70(1).
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Public procurement;
Shared management
and control of EU
funds
Single
Legislative
N
Powers; recovery
To clarify or consolidate
existing rules
S
Recovery and
sanction
Croatia
–
Irregularity and fraud risk assessment
In Croatia, the Service for combating irregularities and fraud conducted an irregularity and
fraud risk assessment exercise in line with the Irregularity and Fraud Risk Management
Methodology. The risk assessment was performed at bodies of Management and Control
Systems for operational programmes financed from Cohesion Fund, European Regional
Development Fund and European Social Fund, AFCOS network bodies and the Service for
combating irregularities and fraud. The results of the risk assessment will serve as a basis for
the formulation of the new National Anti-Fraud Strategy.
This measure will allow enhancing administrative capacities in the area of fraud risk
management and implementing efficient and effective anti-fraud measures; it provides
instructions and tools for irregularity and fraud risk management.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
AFCOS
Single
Administrative
A
Management of the
funds
to enhance existing
measures
S
Croatia
–
Training needs analysis methodology
In Croatia, SCIF drafted the "Training needs analysis methodology" in the field of managing on
irregularities for the period 2017-2019 and accordingly, conducted training needs analysis
among the employees involved in the tasks connected with the management and use of EU
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funds. Also a 'Catalogue of educational activities' was established consisting of all the topics
for which trainings will be conducted for a three year period. In 2017 three educations were
held.
One of the Service's responsibilities is, among others, the preparation of strategic documents
for the performance of trainings to be delivered to the bodies within the AFCOS system in the
field of managing on irregularities and protection of the EU financial interests with the aim of
further enhancing of the Management and Control System bodies employees' knowledge. It is
of the utmost importance to design appropriate educational/training programmes according to
the needs of employees.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
AFCOS
Single
Administrative
A
Management of the
funds
to enhance existing
measures
S
Belgium
–
Fraud prevention strategy for agricultural and fisheries expenditure
The 2017 strategy paper on fraud, which includes an anti-fraud policy statement, focuses on the
specific fraud prevention strategy for expenditure from the EU agricultural and fisheries funds.
Without prejudice to the measures already taken, the declaration constitutes a formal
commitment to the EU authorities, regarding the preparation of a structured and visible anti-
fraud strategy.
Regarding risk management, a number of topics selected for priority screening were analysed
from the angle of vulnerability to fraud and fraud prevention. This methodology will be applied
mutatis mutandis to a wider range of processes.
The strategy to prevent and tackle fraud is further strengthened and structured thanks to the
initiatives taken by the management board, underpinned by the two policy statements.
Anti-fraud
cycle steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Prevention
Detection
Strcutured
commitment for
preventing and
combating fraud
(other)
Package
Operational
A
IT tools, risk indicators
Enhanced coordination,
enhanced information flow,
targeting checks, enhanced
ex-ante controls, enhanced
ex-post controls
S
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Romania
–
Package of measures on the control of EU funds
At managing authorities level, operational procedures/manuals were approved for preventing
and combating irregularities/fraud, for carrying out verification activities and for classic on-the-
spot checks; The Audit Authority adopted the Audit Manual for European Structural Funds and
Investments for the Programming Period 2014-2020.
In order to prevent and combat irregularities/fraud in connection with obtaining/using European
funds.
Administrative measure: Fraud risks evaluation procedures/managing authority action plans
(MA HCOP, MA COP, MA LIOP, MA ROP); Operational Procedure regarding the remedying
of aspects that might affect the rights and legitimate interests of TAOP beneficiaries - 2020 -
MA TAOP; Irregularities and fraud prevention plan - AFIR (Rural Investment Financing
Agency) Anti-fraud action/control plan - MA ACOP; Audit Manual for European Structural
Funds and Investment, 2014 programming period - Audit Authority; APIA (Agency for
Payments and Intervention in Agriculture) procedures/manuals; Manual on internal procedure
for verification activities - MA FMAOP.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Administrative
N/A
Preventing and combating
irregularities/fraud (other)
Other 1
S
Detection
Shared
management and
control of EU
funds
Package
Organisational
A
Reorganisation of existing bodies;
general trainings; fraud awareness
trainings; other²
other³
S
Operational
A
IT tools; increased number of
checks; other
4
Enhanced information flow;
enhanced ex-post controls
S
1
Periodical evaluation of fraud risks, prevention and/or reduction of risk of irregularities and fraud
occurring in the implementation of projects.
² At Audit Authority level, training sessions were organised to disseminate and roll out the Audit
Manual for European Structural Funds and Investment - programming period 2014 - 2020. At MA
HCOP level, the Anti-Fraud and Irregularities Detection Service was reorganised. At MA FMAOP level,
the Control Service for the Fisheries and Maritime Affairs Operational Programme was established.
³ The training sessions organised in order to disseminate and roll out the Audit Manual for European
Structural Funds and Investment - programming period 2014-2020 - updated the external public
audito s k o ledge of the e ui e e ts o e i g p ote tio of the Eu opea U io s fi a ial
interests.
4
At APIA level, control activities were ordered concerning the way beneficiaries obtain financial
support managed by APIA. At MADR level, a sample was selected of projects contracted under the
NRDP 2014-2020 which underwent verification in 2017. In the process for evaluating fraud risks and
34
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adopting efficient and proportionate anti-fraud measures, at MA COP level, a new version of the
ARACHNE IT system - ARACHNE Risk scoring tool, Version 2.0 - was created in 2017.
5.1.2
Agriculture, Fisheries, Cohesion, AMIF, FEAD and EGF
Estonia
–
Access to the tax information
On 01.04.2017 an amendment in the Estonian national Taxation Act § 29 “Disclosure of
information containing tax secrets” point
46 was adopted, which gave to the competent bodies
the right to access different tax information. In particular, Estonian implementing agencies got
the possibility to compare information and fight against fraud more effectively.
This measure is expected in facilitating the fraud response capabilities of implementing
agencies, allowing them to detect fraud cases before payment or reducing the financial loss.
The content of the legislative provision § 29: “A tax authority may disclose information subject
to
tax secrecy” point 46 “to the management authority of funds specified in § 1 of the 2007–
2013 Structural Assistance Act and § 1 of the 2014–2020 Structural Assistance Act and to the
persons engaged in granting support on the basis of fund-specific rules to the extent which is
necessary for the checking of compliance with the requirements for the grant of support,
purposeful use and eligibility of expenditure”
7
.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Reason for measure
Detection
Shared management
and control of EU
funds
Single
Legislative
A
Powers
To clarify or consolidate
existing rules; to enhance
anti-fraud capability
(other)
S
Bulgaria
–
Training courses on irregularities in public procurement
Twenty-four training courses were organised by the Audit of EU Funds Executive Agency,
attended by 755 representatives of the Management Authorities, Certifying Authorities, the
Supreme Administrative Court, the Central Coordinating Unit, the National Institute of Justice,
the Bulgarian
Prosecutor’s Office, ministries, agencies, municipal administration
- beneficiaries
and procuring entities under the Public Procurement Act.
The following subjects were covered:
Irregularities in public procurement leading to financial corrections and irregularities
and fraud indicators in public procurement
the Audit Authorities' experience with the programmes under the European Structural
and Investment Funds.
7
https://www.riigiteataja.ee/en/eli/528122017001/consolide
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The measure in question contributes to the increase of knowledge among beneficiaries and
procuring entities under the Public Procurement Act about infringements and irregularities in
respect of the rules for public procurement and about the guidelines on correcting and
preventing them in future; and it promotes cooperation and mutual assistance among national
bodies to prevent and remedy any potential or existing conflict of interest in relation to ex ante
and ex post checks of public procurement procedures.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Public procurement;
conflict of interest;
Detection
fraud definition;
shared management
Investigation
and control of EU
and prosecution
funds
Recovery and
sanction
Single
Organisational
N
Inter-agency
cooperation; general
trainings; fraud
awareness trainings
Neutral on resources
S
5.1.3
Cohesion policy, fisheries, AMIF, EGF, FEAD
Latvia
–
Updating internal procedures
This measure covers the following funds: ESI and Migration and Asylum.
Measures taken by the Managing Authorities related to the updating internal procedures,
approving management procedure, performing risk assesment procedures, elaborating
irregularity procedures and arising awareness of people about possibility to report about fraud.
All those measures increses the national institutions ability to fight with fraud and ensure the
highest protection of national and EU budget. Managing authorities are working on
improvements of system continuously.
To follow requirements of Latvia-Russia CBC programme 2014-2020 legal framework about
anti-fraud measures/irregularity prevention/detection/reimbursement and to constitute part of
programme management and control systems. Documents were prepared as part of Interreg V-
A Latvia-Lithuania Cross Border Cooperation Programme 2014-2020 Management and
Control Systems in order to ensure programme`s proper implementation and monitoring,
meanwhile describing fraud risks and their mitigation activities, as well as fraud cases
detection, reporting, etc.
Work table for FEAD Managing Authority, Certififying Authority, Co-operation Authority
(intermediate body) for risk assesment documentation. Risk register. Action plan for MA un
CA for decreasing risks.
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Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
To enhance existing
measure; Cross-cutting
measure, multi-agency
measure/ measure with
impact on various bodies;
Other
Horizontal
/ sectoral
Prevention
Public
procurement;
Corruption;
Conflict of
Detection
interest; Fraud
definition;
Whistleblower;
shared
management and
control of EU
funds
Recovery and
sanction
Administrative
N/A
Management of funds; Irregularities
reporting; Recovery; Financial
corrections (Other)
S
Package
Organisational
N
Competence; Simplification of
procedures
S
Operational
N
IT tools; risk indicators
Enhanced ex-ante controls
S
Cyprus
–
Simplification of procedures
The administrative measure adopted aims at simplifying the procedures in relation to Structural
and Investments Funds and for the Fund for the most deprived.
With the adoption of simplified cost options the access to EU funding becomes simpler and
red-tape is decreased for many recipients (beneficiaries) and managing authorities: less
paperwork, lower risk of errors, no duplication of audits and controls. At the same time,
transparency has increased, there is a focus on results rather than on supporting documents and
there are additional safeguards against fraud.
Anti-fraud cycle
steps
Prevention
Eligibility criteria;
Management of funds; To clarify or consolidate
Monitoring/desk
existing rules; To enhance
checks; On the spot
existing measure
checks
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Shared management
and control of EU
funds
Single
Administrative
N
S
Greece
–
System for financial corrections and procedures for recovering unduly paid
amounts
Adoption and publication (in the Government Gazette) of the Ministerial Decision on the
system for financial corrections and procedures for recovering unduly or unlawfully paid
amounts imposed by the Fiscal Control Committee (EDEL), with regard to amounts originating
from the State budget and/or the EU budget for the implementation of co-financed programmes
under the Investment for Growth and Jobs goal of the European Maritime and Fisheries Fund,
the Fund for the Most Deprived and the Globalisation Fund.
It is important because it provides for a system of financial corrections in the event of
irregularities resulting from an infringement of EU or national rules that has had or may have
an adverse effect on the EU budget by charging it with unjustified expenditure. Consequently,
this system helps to protect EU financial interests.
The Ministerial Decision:
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a) clarifies the meaning of irregularity and financial correction;
b) establishes the scope;
c) describes the procedures for approving and assessing the results of the audit;
d) determines the various types of financial correction;
e) refers to the financial correction decision and its content;
f) clarifies the financial impact of the financial correction decision; and
g) describes the method for recovering unduly or unlawfully paid amounts.
Ministerial Decision No 286/2017, published in the Greek Government Gazette, Series II, No
466 of 17 February 2017.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Shared management
and control of EU
funds
Single
Legislative
N
Definition of a
specific topic;
Recovery; Financial
penalties
To enforce the rules in line
with developments in EU
law
S
Recovery and
sanction
Portugal
–
Management and control systems
With their management and control systems, the PT 2020 managing authorities will define the
pillars of their anti-fraud strategy which aims to ensure that effective and proportionate anti-
fraud measures are adopted, taking into account the risks identified in its work and establishing
its policy on fraud, and the procedures to be followed.
It helps to deter fraudulent practices, to prevent and identify indications of fraud, and to correct
and report situations detected to the competent authorities. it includes in particular
administrative, organisational and operational measures adopted by the MA of POISE and the
OP supporting the most deprived [PO APMC] in 2017.
Anti-fraud
cycle steps
Prevention
Administrative
Detection
Corruption;
Conflict of
interest; Whistle-
blowers; Shared
management and
control of EU
funds
A
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Reporting of suspected fraud; Anti-
fraud or anti-corruption strategy
To enhance existing measure
and Integrity and Transparency
Measures (Other)
S
Package
Organisational
N
Competence; Awareness-raising
measures on ethics, behaviour and
integrity (other)
Other 1
S
Operational
A
Flagging practice; Risk indicators;
Other²
Enhanced ex-ante controls;
Enhanced ex-post controls;
Other³
S
38
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Measu es e e a ied out o Ethi s, pu li a age e t a d p e e tio of o uptio , di e ted at a age s
and staff and provided by the Council for the Prevention of Corruption [Conselho de Prevenção da Corrupção].
1
² Depending on the results. These plans aim to assess management risks, in particular regarding fraud and
corruption and also risks of unintentional errors or irregularities occurring in connection with implementation of
the operational programmes.
³ Given the new assumptions on operationalisation of the risk assessment exercises, the MAs adapted the risk
assessment tool provided by the EU (which is limited to inherent risks of fraud in operational activities), and
extended it to include risks and monitoring of non-operational activities performed by each unit and
management risks as a whole. The MA of POISE and POAPMC outlined a global action plan setting out 49
additional checks as well as the bodies responsible and dates for its implementation.
5.2
Agriculture
Germany - Establishment of a Federal/State Working Group
Germany established a Federal/State Working Group [Bund-Länder-Arbeitsgruppe]
‘Artificial
creation of eligibility criteria in the context of EU agricultural policy implementation in
Germany’.
As part of the EU Common Agricultural Policy reform the European Commission has
strengthened the arrangements ensuring the protection of the financial interests of the Union.
Provisions concerning the artificial creation of eligibility criteria have also been developed
further in this context. The paying agencies are called upon to implement these guidelines
accordingly.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Shared management
and control of EU
funds; antifraud or
anticorruption
strategy
Single
Operational
N
Risk indicators
Enhanced coordination;
enhanced cooperation;
targeting of checks
S
Hungary
–
Mandatory training on fraud prevention
Hungary organised mandatory training on fraud prevention for the
’Hungarian State Treasury’
paying agency employees and basic anti-fraud training for Government Office paying agency
employees performing delegated tasks, as well as making the training materials available to all
colleagues concerned.
During the presentations, attention was drawn to the importance of vigilance in the fight against
fraud. Employees are able to familiarise themselves with the principle guidance criteria and
illustrative cases. Annual refresher training sessions will use more recent examples to assist
with the detection of irregularities, such as fraud, falsification of documents and artificially
meeting qualifying conditions.
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Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Detection
Fraud prevention
and detection in
the paying
agencies for the
2014-2020
programming
period, limiting
irregularities
and fraud, types
of fraud (other)
Package
Organisational
N/A
Fraud awareness training
Neutral on resources
S
Slovakia
–
Enhanced protection of EU financial interests
Slovakia Act no. 280/2017 Coll. of 12 October 2017 on granting of aid and subsidies in
agriculture and rural development emphasizes the protection of the EU's financial interests and
regulates irregularities' reporting under EAGF and EAFRD. The act is effective as of 1 January
2018.
This legislative amendment complements the competences of state administration bodies in
providing aid for agriculture and rural development, including the field of the protection of the
EU's financial interests, which will help to prevent irregularities and unify practices of state
authorities in the area of the protection of the EU's financial interests.
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Shared management
and control of EU
funds
Single
Legislative
N
Competences;
recovery; financial
penalties
To enforce the rules in line
with developments in EU
law
S
Recovery and
sanction
Netherlands
–Checks
on the basis of procurement rules
The Netherlands reported having adopted an organisational measure regarding checks on the
basis of procurement rules and the evaluation of reasonableness of costs.
The measure aims at dealing with conflict of interests.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Conflict of interests;
shared management
and control of EU
funds
Single
Organisational
A
Competence
Neutral on resources
S
Austria - Improvement in the Irregularities Management System (IMS) notifications
Austria took a specific measure to improve the timeliness and quality of the reported
information. The measure encompasses training and simplified procedures to achieve the goal.
Anti-fraud cycle
steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Shared management
and control of EU
funds
Single
Organisational
A
General trainings;
simplification of
procedures
Neutral on resources
S
Hungary
–
Rural development antifraud strategy
In Hungary, the managing authority for rural development programmes (‘the RD MA’) adopted
the RD MA Anti-Fraud Strategy. It prepared the fraud risk-assessment tool for 2017.
In cooperation with the intermediate body, the RD MA is able to establish a proactive,
structured and targeted approach to managing fraud risks during the implementation of the
operational programme, determine the necessary measures to reduce specific fraud risks using
the strategy and ensure the monitoring of fraud risks and fraud prevention measures.
Anti-fraud cycle
steps
Prevention
Eligibility criteria;
investigation;
irregularities
reporting; penalty;
recovery
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Antifraud or
anticorruption
strategy
Single
Administrative
N
To clarify or consolidate
existing rules
S
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Luxembourg - Guidance note for Premium managers to prevent fraud
A scam was discovered in 2013 following an internal administrative audit. Following that
incident, the Ministry of Agriculture fundamentally reviewed its external and internal control
system. Several measures/safeguards were taken or reinforced since then. The following
procedure is one of them.
Anti-fraud
cycle steps
Single /
Package
New /
Amendment
Reasons for measure /
expected results
To clarify or consolidate
existing rules; to enhance
existing measure
Horizontal
/ sectoral
Area covered
Type of Measure
Scope
Prevention
Administrative
N
Irregularities reporting
S
Detection
Shared
management and
control of EU
funds
Organisational
Package
A
General trainings; training sessions
with DG AGRI
Increased reasources
S
Operational
A
Flagging practice; risk indicators
Enhanced information flow;
targeting of checks
S
Poland
–
Manual of procedures
Poland reported about the preparation of a manual of procedures entitled 'Providing information
on irregularities detected within the framework of EAGF mechanisms operated by the National
Centre for Agricultural Assistance' (No KP-611-490-ARiMR/1/z).
This instrument was introduced with a view to regulating the process of providing information
on irregularities and fraud within the framework of EAGF mechanisms operated by the
National Centre for Agricultural Assistance.
Covering three of the fraud stages of the antifraud cycle, this operational measure covers
aspects related to flagging practices, use of risk indicators and cooperation with law
enforcement.
Anti-fraud cycle
steps
Prevention
Single /
Package
New /
Amendment
Reasons for measure /
expected results
Horizontal /
sectoral
Area covered
Type of Measure
Scope
Detection
Investigation
and prosecution
Fraud definition;
shared management
and control of EU
funds
Single
Operational
N
Flagging practice; risk
Enhanced coordination,
indicators; structured
cooperation, information
cooperation with law
flow
enforcement
S
Lithuania - Methodology for the Detection of artificially created conditions
In view of Article 60 of Regulation (EU) No. 1306/2013 of the European Parliament and of the
Council of 17 December
2013, 60 “Circumvention Claus”, in 2017 Methodology for the
Detection of Artificially Created Conditions for Obtaining Support was updated for ensuring
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more effective fight against fraud. With a view to strengthening irregularity prevention and
minimise the increased number of errors, a special analysis was carried out and preventive
actions were implemented in order to contribute to a more effective protection of the EU and
national financial interests.
The Methodology for the Detection of Artificially Created Conditions for Obtaining Support
sets out criteria for identifying applicants or beneficiaries who have created artificial conditions
for obtaining support so as to prevent potential irregularities and fraud.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Detection and
prevention of
artificialy
created
conditions for
obtaining
support (other)
Detection
Package
Legislative
A
Definition of a specific topic;
prevention of irregularities and
fraud (other)
To clarify or consolidate
existing rules; to remedy
flaws; to enforce the rules in
line with developments in EU
law; Other
S
Cyprus - Methodology for the Detection of artificially created conditions
With the goal to enhance the understanding & awareness regarding red flags & indicators for
irregularity and fraud risks in the entire lifecycle of an application, incl. controls, a workshop
was organised concerning: .
“Best practices for Paying Agencies for conformity with antifraud
obligations as foreseen in the legal framework on the financing, management & monitoring of
CAP (The European Commission’s perspective)”.
Topics of focus concerned thecCreation of artificial funding conditions / conflicts of interests.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Conflict of interests;
shared management
and control of EU
funds
Single
Organisational
A
Competence; fraud
awareness trainings
Neutral on resources
S
Luxembourg
–
Definition of procedures following the detection of irregularities and fraud
A scam was discovered in 2013 following an internal administrative audit. Following that
incident, the Ministry of Agriculture fundamentally reviewed its external and internal control
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system. Several measures/safeguards were taken or reinforced since then. This procedure is one
of them.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Administrative
Detection
N
Irregularities reporting
To clarify or consolidate
existing rules; To enhance
existing measure
S
Shared
management and
control of EU
funds
Package
Organisational
A
General trainings; training sessions
with DG AGRI
Increased resources
S
Operational
A
Flagging practice; risk indicators
Enhanced information flow;
targeting of checks
S
5.3
5.3.1
Cohesion policy and Fisheries
Cohesion policy
Germany
–Risk
assessment using the Commission self-assessment tool
Germany conducted risk assessments using the self-evaluation tool developed by the
Commission in line with Annex 1 to the Guidance Note on fraud risk assessment and effective
and proportionate anti-fraud measures, a request was made to all legal and natural persons
involved in a procurement procedure to sign a statement declaring the absence of conflict of
interest.
The fraud self-assessment instrument proposed by the Commission is a simple, logical and
practical tool based on five main methodical steps:
1. Quantifying the (gross) risk of the occurrence of a certain type of fraud,
2. Evaluation of the effectiveness of the existing controls,
3. Evaluation of the net risk after taking into account the effectiveness of all existing
controls and their effectiveness, i.e. assessment of the current situation (residual risk)
4. Evaluation of the effectiveness of the planned mitigating controls for the net (residual)
risk
5. Determination of the target risk, i.e. the risk which is deemed tolerable by the managing
authority once all controls have been put in place and their effectiveness has been
proven.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Public procurement;
financial crime;
corruption; conflict of
interests; shared
management and
control of EU funds;
other
Single
Operational
N/A
Risk indicators
Targeting of checks; other
(Verifying and securing a
tolerable level of risk;
Overview of the existing
risk areas, individual
risks and controls)
S
Ireland
–
Anti-fraud policy and statement
Both Managing Authorities for ERDF have drawn up an anti-fraud policy and an anti-fraud
statement, together with procedures for adequate fraud risk assessment. A fraud risk assessment
has taken place to identify the impact and likelihood of fraud risks relevant to the key processes
in the programmes, The fraud risk assessment will be updated bi-annually. This is in line with
the designation action plan.
To asses the risk in respect EU co-funded measures.
Anti-fraud cycle
steps
Prevention
Shared management
and control of Eu
funds; antifraud or
anticorruption
strategy
Eligibility criteria;
To clarify or consolidate
Management of funds;
existing rules; EU
Monitoring/desk
Regulatory requirement
checks; On the spot
for designation purposes
checks; Irregularities
(other)
reporting
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Single
Administrative
N
S
Croatia
–Guidelines
on irregularity management
Guidelines on Irregularity Management in the context of programmes supporting objectives of
European territorial cooperation for the period 2014-2020 were drafted by SCIF and adopted by
the Minister of Finance in May 2017. Also SCIF is currently in the process of drafting
Guidelines on Irregularity Management in the context of Fund for European Aid to the most
Deprived (FEAD) within Operational programme for food and basic material assistance for the
period 2014.-2020., Guidelines on Irregularity Management in the context of European
Fisheries Fund for the period 2014.-2020.
This measure is extremely important beacuse it ensures effective and efficient protection of the
EU financial interests by improving the work efficieny of the competent institutions in this
area, as well as quality of reporting.Also, together with the abovementioned SCIF is in the
process of drafting Guidelines on Irregularity Management in the context of national
programmes Asylum, Migration and integration Fund (AMIF) and International Security Fund
for the period 2014.-2020. and Guidelines on Irregularity Management in the context of
common agricultural policy 2007.-2013. and 2014.-2020.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
AFCOS; treatment and
follow-up of
irregularities (other)
Single
Administrative
A
Irregularities
reporting
To enhance existing
measure
S
Lithuania
–
Seminars on corruption and fraud detection and conflict of interests
management
A Managing authority, in cooperation with the Special Investigation Service (anti-corruption
agency) and Financial Crime Investigation Service under the Ministry of the Interior, has
organised seminars for the institutions of the Managment and Control Sysytem in the field of
detecting possible corruption and fraud cases and in the field of management of conflict of
interests.
Competence of the staff managing the projects financed by the EU funds and/or planning the
investments of the EU funds was strengthened in the field of detecting possible corruption and
fraud cases (e.g. in the field of public procurement, research and development projects and
other) and in the field of management of conflict of interests. The increased competence of the
staff mitigates the risk of possible coruption or fraud, also information sharing chanels between
MCS institutions and investigative bodies have been discussed and agreed (23/11/2017;
17/10/2017, 24/10/2017, 5-6/12/2017).
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Financial crime;
corruption; conflict of
interest
Single
Organisational
N
Fraud awareness
trainings
Neutral on resources
S
Luxembourg
–
Simplified cost options in ESF projects
According to the Ministry of Labour, the managing authority of the ESF, the use of simplified
cost options increases transparency with regards to result and therefore reduces the possible
intention of fraud on behalf of beneficiaries.
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Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Administrative
N
to reduce administrative
burden and to focus on the
Eligibility criteria; monitoring/desk
outputs and results of the
checks; on-the-spot checks; audit
projects instead of limiting
chcklist
the checks of the application
of accountability rules
S
Detection
Fraud definition
Package
Organisational
N
Simplification of procedures
Neutral on resources
S
Operational
A
IT tools
Enhanced ex-ante controls;
Enhanced ex-post controls
S
Netherlands
–2nd
Risk assessment
After the first fraud risk assessment for ERDF conducted in June 2015, the assessment was
again carried out on 10 October 2017 as per previous agreements. The findings of the second
assessment have been discussed and a decision will be made in the near future on the follow-up
action to be taken. In this way, risk areas will be identified at an early stage and appropriate
measures devised.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Conflict of interests;
shared management
and control of EU
funds
Single
Organisational
A
Competence
Neutral on resources
S
Austria
–
High density of verifications
A high density of verificiations pursuant to Article 125(4) of Regulation No 1303/13 for the
2014 - 2020 programming period serves to prevent irregularities. The verification procedure
provides for the managing authority to check all the expenditure submitted by the beneficiary.
Formal requirements in the national rules on eligibility and in the management and control
system should increase efficiency. Standardised forms (check-lists) improve the quality of the
accounts submitted.
Presentation of the entire funding operation, including the accounting process, in a central
database. In addition, the Arachne data-mining tool, provided by the Commission, is used for
risk evaluation and risk analysis.
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Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Cross-cutting measure; multi-
agency measure / measure
with impact on various
bodies
Horizontal
/ sectoral
Public
procurement;
conflict of
interests, shared
Detection
management and
control of EU
funds; antifraud
or
anticorruption
Recovery and
strategy
sanction
Administrative
A
Eligibility criteria; management of
funds; on-the-spot checks;
irregularities reporting; recovery
S
Package
Enhanced information flow;
targeting of checks
Operational
A
IT tools; other
S
Poland
–
Cooperation agreement between Minister for Development and Finance and the
Public Prosecutor
A cooperation agreement between the Minister for Development and Finance and the Public
Prosecutor was signed on the communication of information on pending and concluded
proceedings relating to projects implemented with European funding.
This instrument enables information to be exchanged on proceedings involving projects
implemented with EU funds on a cyclical basis: twice in each year of the Agreement for all
proceedings and as part of ongoing cooperation should it be necessary to obtain information on
specific proceedings through working contacts between designated employees of the Ministry
and the Public Prosecutor. MA may also send questions on specific proceedings to the Public
Prosecutor, the result of which may affect eligibility of expenditure.
Furthermore, in this way, prevention and detection of fraud and irregularities will be enhanced,
ensuring that grants are made available in accordance with the rules and implementing grant
agreements.
Anti-fraud cycle
steps
Prevention
Share management
and control of EU
funds; Antifraud or
anti-corruption
Strategy
Enhanced coordination,
Flagging practice; risk
cooperation and
indicators; increased
information flow;
number of checks;
targeting of checks and
structured
investigations; prevention
cooperation with
and detection of fraud and
judicial authorities
irregularities (other)
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Investigation
and prosecution
Single
Operational
N
S
Slovenia
–
Cooperation with law enforcement and judicial authority
The Slovenian Government Office for Development and European Cohesion Policy (SVRK)
finalised a package of agreements to strengthen cooperation with investigative bodies and
auhtorities:
1.
with the State Attorney’s Office of the Republic of Slovenia on education at judicial
schools
– organisation of workshop on ‘legal framework for
relationships stemming
from the granting of European cohesion policy funding’;
2.
with State Attorney’s Office in all matters relating to European cohesion policy
reporting, and mutual assistance and support;
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3. with Police regarding training of staff at IB, MF-CA, AA and MA on the topic of
‘Fraud at the EU’s expense’.
In 2017 the Slovenian Agency for Agricultural Markets and Rural Development (ARSKTRP)
organised training for staff on how to prevent fraud and the artificial creation of conditions.
ARSKTRP staff carried out the training at MKGP and KGZS.
This package of measures aims at the following goals:
more effective and improved functioning of the judicial system in Slovenia; easier
recovery of undue amounts from beneficiaries; improved understanding of the
functioning of the European cohesion policy system.
improved drafting of judicial documents, more efficient recovery of unduly spent
European cohesion policy funds, improved representation of the interests of Slovenia
and protection of the EU budget.
more efficient and effective detection and prevention of irregularities and fraud.
As regards ARSKTRP: continuing training and awareness-raising of staff involved in
drafting legal frameworks, providing advice and conducting administrative decision-
making procedures, in order to prevent artificial creation of conditions.
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Anti-fraud
cycle steps
Prevention
Public
procurement;
conflict of
Detection
interests, fraud
definition;
Investigation
AFCOS; shared
and
management and
prosecution
control of EU
Recovery and
funds
sanction
Package
Organisational
A
General trainings; fraud awaress
trainings
Neutral on resources
S
Slovakia
–
Enhancement of transparency of the evaluation procedure
Enhancement of transparency of the evaluation procedure of the Requests for Non-repayable
Financial Contribution (hereinafter
as „RNFC“) by means of publication of the list of
evaluation experts and evaluation sheets in accordance with the EC applied in the Horizon
2020 work programme, demanding increase on evaluation experts and demonstrability of
competence of evaluation experts, electronic draw lots of evaluators on website
www.itms2014.sk, enhancement of cooperation with non-governmental organizations.
Assurance of increased transparency by publication of the list of evaluation experts and
evaluation sheets in the public section of ITMS2014+, increase in demands on evaluation
experts, demonstration of proficiency in the area of the evaluation, elimination of conflict of
interest and automatic random sampling of evaluation experts for RNFC by ITMS2014+ will
have due to reducing of potencial corruption, conflict of interests and increase of competency
and proficiency the significant effect on enhancement of protection of the EU´s financial
interests and contribution to the prevention of fraud.
Prevention of the conflict of interests at the evaluation expert. Increase of checks of EU funds.
Enhancement of monitoring made by non-governmental organizations.
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The legislation measure in the sense of Programming Declaration of the Government of the SR
for years 2014–2020 by which was enhanced the principle of transparency,effectiveness,finality
and orientation on results in implementation of EU funds.The document approved by the
Government Decision No141 dated 13 April 2016 and also by the National Council of the
SR.Through the modification of the Act No 575/2001 Coll. on organization of government
activities and organization of the central state administration was established the Deputy Prime
Minister´s Office for Informatization and Infrastructure.
The intents and responsibilities stated in the Programming Declaration of the Government are
binding and periodically evaluated on the level of the state administration.
Document approved by the Government Decision No141 dated 13 April 2016 and by the
National Council of the Slovak republic as printing No 45 dated 18 April 2016.
Anti-fraud
cycle steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Prevention
Conflict of
interest; shared
management and
control of EU
funds;
Prevention of the
conflict of
interests at the
evaluation
expert. Increase
of checks of EU
funds.
Enhancement of
monitoring made
by non-
governmental
organizations
(Other)
Legislative
A
Competences; Definition of a
specific topic; other
Management of funds; Increase of
quality of the fund management by
the Managing Authority aimed at
extension of the possible access of
the public to the control of the
selection project procedure
other
Administrative
Package
A
to enhance existing
measure; enhance the
transparency within
selection of projects
S
Organisational
N
competence; enhancement of
competency of the Managing
Neutral on resources
Authority in the area of using of the
IT means
IT tools IT data feedi g , Othe
IT ; We epo ti g/Hotli e; Risk
indicators; Other
Enhanced information flow;
Enhancement of information
accesible to the public
(other)
Operational
A
Finland - upgraded EURA 2014 Structural Funds management system
With the new findings section of the EURA management system, the authorities implementing
Finland’s Structural Funds Programme, including the
intermediate bodies as well as the
managing, certifying and audit authorities, can observe all the findings recorded in the system
and can each make use of it in their own work. Intermediate bodies can use it, for example, in
project risk assessment in the project preparation stage.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Investigation
and prosecution
Recovery and
sanction
Public procurement;
Shared management
and control of EU
funds
Single
Operational
N
IT tools
Enhanced information
flow
S
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United Kingdom - Implementation of a Counter Fraud Strategy for the 2014-20 ESIF
The United Kingdom Ministry of Housing, Communities and Local Government adopted an
antifraud strategy for the 2014-20 European Structural and Investment Funds (ESIF) focusing
on fraud risk assessment, management, training and relevant procedures, also adopting and
using ARACHNE to identify possible fraud through validation and cross referencing of
information/data.
This strategy ensures the UK has systems, procedures and internal controls in place to prevent,
detect and minimise fraud on European Funded projects. The introduction of the ARACHNE
system will help identifying potential fraud through validation and cross referencing of
information/data. The system will help to identify European Funded projects which might be
susceptible to conflict of interest in addition to other risks relating to fraud and irregularities.
The introduction of the ARACHNE system will help identifying potential fraud through
validation and cross referencing.
Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Detection
public
procurement;
corruption;
conflict of
interest; fraud
definition;
whistleblower;
antifraud or
anticorruption
strategy
Administrative
N/A
Eligibility criteria; management of
funds; monitoring/desk checks; on-
the-spot checks; audit checklist; To enhance existing measure
investigation; irregularities
reporting; penalty; recovery
Reorganisation of existing bodies;
competence; inter-agency
cooperation; general trainings;
fraud awareness trainings;
simplification of procedures
S
Package
Organisational
N/A
Neutral on resources
S
United Kingdom - Segregation of European Social Fund (ESF) functions
The Managing Authority, the Department for Work and Pensions, is structured to ensure
segregation of ESF functions: the claims recording, verification, and authorisation are separated
by individual function and teams e.g. The appraiser and approver of the application is different
to contract manager; the person checking claims is different to the authoriser. This separation
of functions has been incorporated into development of the IT system preventing users from
undertaking tasks on a project which conflict with one they have already done.
Fraud committed by staff or organisations delivering services on behalf of government can
create significant financial and reputational harm.
Serving as a primary defence against internal fraud, these measures ensure that there is
oversight and review to catch errors and helps to prevent fraud or theft because it involves
separating main functions and having them conducted by different employees and different
teams, so it is much more likely that fraud will be detected or discouraged in the first place.
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Anti-fraud
cycle steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal
/ sectoral
Detection
Confict of
interest;
antifraud or
anticorruption
strategy
Package
Administrative
A
Eligibility criteria; management of
funds; monitoring/desk checks; on-
the-spot checks; audit checklist; To enhance existing measure
investigation; irregularities
reporting; penalty; recovery
S
5.3.2
Fisheries
Italy
–
fight against illegal fishing
Italy adopted the Ministerial Decree No 16591 of 25 July 2017, which defined methods,
deadlines and procedures for the application of the points system for serious infringements to
masters of fishing vessels, within the meaning of Article 19 of Legislative Decree No 4 of 9
January 2012.
The legislative measures introduces more appropriate penalties that give the system greater
credibility by enhancing the preventive role played by penalties.
Article 39 of Law No 154 of 28 July 2016 amended the penalty system relating to fishing,
which meant that the content of Ministerial Decree 29/2/2012 - on the methods, deadlines and
procedures for the application of the points system to masters of fishing vessels for serious
infringements of the CFP - had to be updated, in the light of the new types of administrative
offence established as a result of the decriminalisation process consisting in increasing the
amounts of the administrative fines laid down.
Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Illegal fishing
Single
Legislative
N
Financial penalties
To clarify or consolidate
existing rules
S
Recovery and
sanction
Finland
–
Anti-fraud plan for EMFF
Finland adopted an anti-fraud plan for the European Maritime and Fisheries Fund (EMFF).
The purpose of the anti-fraud plan is to help the authorities prevent and identify deliberate and
unintended irregularities and fraud and adopt the follow-up measures needed to combat them.
The plan was drawn up in 2017 and implementation will start in 2018.
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Anti-fraud cycle
steps
Prevention
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Control of Eu funds
Single
Administrative
N
Management of funds;
To clarify or consolidate
monitoring/desk
existing rules
checks
S
5.4
Measures covering
management
several
shared
management
funds
and
centralised
Spain
–
Establishment of a confidential channel
These measure covers all expenditure sectors.
Spain established a confidential channel for complaints centralised at AFCOS, through which
any person aware of facts that may constitute fraud or irregularities in relation to projects or
operations fully or partially funded by EU funds can report these to the administration so that
the competent authorities can take the necessary measures to investigate or verify these facts,
and, if applicable, require responsibility to be taken as appropriate in each case.
This channel allows whistleblowers to report facts of which the authorities would not otherwise
be aware. In addition, this channel is centralised at AFCOS and applies to any European Fund
and to the state, regional and local level. It therefore guarantees technical and uniform handling
of complaints and efficient use of resources, since the managing authorities can use this
channel without needing to create one of their own. AFCOS Communication 1/2017 regulates
the main elements of this channel.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
AFCOS; whistleblower
Single
Operational
N
Enhanced coordination,
cooperation and
Webreporting/hotline
information flow;
targeting of investigations
S
Bulgaria
–
Roundtables on investigation of crimes connected to abuse of EU funds
These measure covered all expenditure sectors.
In 2017, two three-day
roundtables on the subject of ‘Protecting the financial interests of the
EU: investigation of crimes connected to abuse of EU funds’ were organised by the AFCOS
Directorate at the Ministry of the Interior. The participants included 80 investigative police
officers and operational staff from the 28 district directorates of the Ministry of the Interior, the
National Police General Directorate, and the Fight against Organised Crime General
Directorate, as well as representatives of 3 Managing Authorities, the Supreme Cassation
Prosecutor's Office, the Sofia Court of Appeal and the AFCOS Directorate.
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The measure is important because it concerns specialised training and exchange of experience
among staff of the specialised bodies, through the presentation and discussion of the European
and national mechanisms for combating irregularities and fraud in the use of European Union
funds, through sharing of good practices in the detection and investigation of crimes and
through solving specific case studies taken from jurisprudence.
Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Public procurement;
organised crime;
AFCOS; shared
Investigation
management and
and prosecution control of EU funds
Detection
Single
Organisational
N
Inter-agency
cooperation; general
trainings; fraud
awareness trainings
Neutral on resources
S
Hungary
–
Use of Europol European Secure Network
These measure covers Cohesion policy and Centralised direct management
Hungary adopted the Joint Directive No 23/2016 of 15 September 2016 of the Minister for the
Interior and the Minister for the National Economy, issued pursuant to Sections 21(3) and (26)
and 90(14) of Government Decree No 152/2014 of 6 June 2014 on the duties and powers of
members of the government, based on the authorisation conferred under Section 23(4)(c) of Act
CXXX of 2010 on legislation, in order to ensure the uniform and mandatory use of the Europol
European Secure Network applications and compliance with the data protection regulations for
handling open and classified data when using the system.
Joint Directive No 23/2016 and Directive No 25/2017 of 17 August 2017 of the National Police
Headquarters implementing Joint Directive No 23/2016 of 15 September 2016 of the Minister
for the Interior and the Minister for the National Economy laying down rules for cooperation
and information exchange entailing the use of the Europol European Secure Network
applications are intended to ensure that, if the same crime is committed by the same
perpetrators in two or more EU Member States, relevant data representing the law enforcement
interests of the investigative authorities are forwarded securely via digital channels (SIENA).
The directive disciplines, among others, the forwarding of data in the event of commercial,
financial or corruption offences falling
within the investigative authorities’ powers and
jurisdiction in criminal proceedings when cooperating with other national (the police, the
customs and finance guard, the public prosecutor's office, the courts) or international
investigative authorities or joint investigative teams (JITs) or providing legal assistance in
criminal matters (MLA).
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Anti-fraud cycle
steps
Area covered
Single /
Package
Type of Measure
New /
Amendment
Scope
Reasons for measure /
expected results
Horizontal /
sectoral
Detection
Investigation
and prosecution
Financial crime;
organised crime;
corruption;
forwarding of data
(other)
Single
Operational
N/A
IT tools; webreporting
/ hotline; structure
cooperation with law
enforcement and with
judicial authorities
Enhanced coordination,
cooperation and
informatoin flow;
information exchange
S
6.
6.1.
6.1.1.
A
DDITIONAL MEASURES REPORTED BY
M
EMBER
S
TATES
Belgium
Federal Public Service - Finance (Anti-Fraud Cell) 2 additional measures:
—
Article 338, § 2, 11° and 16° to 20° of the Income Tax Code: Automatic exchange
of information: the transposition into national legislation of Council Directive (EU)
2015/2376 of 8 December 2015 amending Directive 2011/16/EU as regards mandatory
automatic exchange of information in the field of taxation. The main aim of the Law
of 20 July 2017 is to allow the automatic exchange of cross-border advance tax rulings
and cross-border advance pricing arrangements between Belgium and the other
Member States of the European Union.
—
Article 333, 3rd paragraph of the Income Tax Code is being amended so that, if an
investigation is carried out at the request of a foreign state, the investigation period
(only in respect of the external request) is automatically extended for an additional
period of four years without prior notice.
6.1.2.
ERDF Wallonia:
—
Cross-cutting measure. Measures to prevent the risk of fraud have been
recommended to all functional administrations in accordance with the Commission
note on fraud risk assessment and effective and proportionate anti-fraud measures.
6.1.3.
Belgium's Anti-fraud Coordination Service (AFCOS/CAF) and Interdepartmental
Committee for Coordinating the Fight against Economic Fraud (CICF):
—
Law conferring upon economic inspection staff the powers necessary to provide
assistance to OLAF during on-the-spot checks. The relevant provision is Article 24 of
the Law of 18 April 2017 laying down various provisions relating to the economy.
This provides for the insertion of Article XV.30/2 into the Belgian Economic Law
Code, conferring upon economic inspection staff the powers laid down in Title 1,
Chapter 1 of Book XV of that Code when they provide assistance to OLAF inspectors.
‘The officials appointed by the Minister are empowered to provide the
necessary
assistance to inspectors of the European Commission in accordance with Article 9 of
Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot
checks and inspections carried out by the Commission in order to protect the European
Communities’ financial interests against fraud and other irregularities.
The staff referred to in paragraph 1 shall have the powers laid down in Title 1, Chapter
1.’
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6.2.
6.2.1.
Bulgaria
Operational measure
By Order R-181/18.09.2017, a second version of the Procedure for managing
access to the EU fraud and irregularities risk scoring system ARACHNE was
approved, which allows each organisation to maintain up to ten Administrator
and Observer profiles in the system as well as an unlimited number of Expert
profiles, depending on the job description.
In 2017, the number of staff with access profiles to ARACHNE was more than
double that in 2016. Under the measure, it is planned to expand the circle of staff
from the bodies responsible for the implementation of the programmes financed
by ESIF with access to the EU fraud risk scoring tool ARACHNE; training in
how to use the system is also planned.
6.2.2.
Organisational measure
A wide-ranging cycle consisting of twenty-seven two-day training courses was
organised, with the participation of seventy-five prosecutors from all appellate
districts. Subjects covered: Review of the types of criminal offences that are
often the object of the fight against crimes affecting the financial interests of the
EU: budgetary misappropriations; documentary fraud, crimes of office,
embezzlement, bribes and trading in influence. The cycle was a key part of the
2017 training calendar of the Bulgarian Prosecutor’s Office and was based on a
multidisciplinary approach, with the participation of academics, prosecutors,
representatives of the Public Financial Inspectorate Agency and the Audit of EU
Funds Executive Agency.
6.3.
Croatia
On the TAIB sectoral committee in the Republic of Croatia held in 2017, one of the
recommendations was to educate Managment and Control System bodies in the filed
of integrity and ethics. Following that, Service for combating irregularities and fraud
organized 5 workshops entitled „Strengthening the integrity of civil servants“ in
cooperation with Ministry of administration and Public school for public
administration. This will be one of the topics that will be repeated in the upcoming
period.
With the aim of enhancing administrative capacities and improving the work
efficiency of the competent institutions in the area of protection of the EU finanacial
interests Service for combating irregualarities and fraud drafted a project proposal
under the HERCULE III programme for the exchange of experience and good
practices in the area of prevention, detection, treatment, reporting and follow-up on
established irregularities and suspicion on fraud with the aim of protecting the
financial interests of the European Union. In the December 2017 we have been
informed that our project entitled „Further strengthening of
the competent institutions
in the area of managing on irregularities with the aim of protection of the EU financial
interests“ was approved by the European Commission and therefore eligible for
funding.
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Partners in this project are Spain, Bulgaria, Malta, Romaina, Estonia, Netherlands,
Serbia, Bosnia and Hercegovina and Montenegro and implementation of the project is
forseen in the period 07.- 11.May 2018.
6.4.
Slovenia
As an addition to Measure 3:
1. Additional measures carried out at MF-Management Department/CA: Establishment
of a debtors’ ledger in the computerised accounting system of the certifying authority
(e-CA). In order to coordinate the combating of fraud and the control of EU funds (as
indicated in the three measures set out above). MF-CA is responsible for keeping the
records of amounts recoverable and amounts withdrawn following cancellation of all
or part of the contribution for an operation (Article 61 of Regulation (EU) No
1303/2013). MF-CA
keeps a debtors’ ledger for an individual operation
in the e-CA
computerised accounting system. When the beneficiary is responsible for recovery, the
intermediate body’s claim against the beneficiary is entered in the debtors’ ledger. The
debtors’ ledger also includes claims related to systemic corrections.
Implementation in 2017, horizontal measure.
2. MF-CA-Department for Management of EU Funds/CA: Updating of instructions for
recovery of designated EU funds for the 2014-2020 programming period; (version of
2/2017). Single and operational measure. The instructions set out the steps to be taken
and define the procedures for recovering designated EU funds where undue use of
such funds is detected. They apply to all participants involved in implementing the
operational programme for European cohesion policy for 2014-2020 for Objective 1,
and mutatis mutandis also to the operational programme for material assistance to the
most deprived persons for the period 2014-2020. Expected results: Enhanced
coordination and cooperation and more effective ex-post controls;
3. Updating of the guidelines of the certifying authority for the implementation of
European cohesion policy (version of 2/2017).
6.5.
United Kingdom
In the Welsh Managing Authority we have taken several steps to strengthen anti-fraud
measures in the Welsh European Funding Office. Apart from formally adopting
ARACHNE a couple of years ago we have developed fairly detailed desk instructions
for its use and implemented them into our policy and guidance.
In addition to this, we require our two intermediary bodies to do likewise and have
arranged for ARACHNE to be made available to them and will be testing claims
submitted to ensure they too are using it.
The Welsh Government has also signed up to Cifas, one of the UK's largest cross-
sector fraud sharing database, and this is being rolled out across the whole
organisation including the Welsh European Funding Office.
Finally, having identified some potential issues in one of our priority areas, operations
in the marine energy areas we are currently developing strengthened due diligence
measures.
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7.
T
RAINING ON THE
I
RREGULARITY
M
ANAGEMENT
S
YSTEM
M
EMBER
S
TATES
ORGANISED BY THE
The Irregularity Management System (IMS) has more than 3,000 users across the 28
Member States and (potential) candidate countries. In order to organise an adequate
support to users, the Commission (OLAF) has put in place a system which is based on
the "train the trainers" approach.
Based on this "decentralised" model, 47 training sessions were organised in twelve
Member States, attended by 607 trainees, as showed in Figure 8.
Figure 8: Training sessions organised by Member States in 2017
Member State
BG
DE
DK
EE
ES
HR
HU
IT
LV
NL
PL
SI
TOTAL
Sessions
4
12
1
1
2
3
11
4
3
2
3
1
47
Trainees
42
171
4
4
60
60
42
83
3
8
120
10
607
8.
8.1.
C
ASE STUDIES REPORTED BY
M
EMBER
S
TATES
Bulgaria
European Social Fund--abuse of funds intended for upskilling staff
The Bulgarian
Prosecutor’s Office carried out an investigation of an offence under
Article 248a(3)(1) in conjunction with (2)(1) of the Criminal Code concerning false
information submitted in a final financial and technical report and a final payment
request for a project financed by the European Social Fund. The grant contract was in
the amount of close to BGN 300 000. As per the contract terms, the beneficiary was
supposed to implement the project together with a partner from Spain; it was
specifically claimed in the Final technical and financial report for the project that joint
events had been held with a Spanish company both in Bulgaria and in Spain.
In order to verify the information submitted to the Contracting Authority, the Sofia
Prosecutor’s Office, via AFCOS,
sent a request to OLAF for assistance in performing
checks in Spain. Following the checks in Spain, the final OLAF report under the
investigation submitted to the Sofia Prosecutor’s Office contained documents, samples
of signatures and information from checks and questionings relating to the subject-
matter of the case. The materials submitted proved beyond doubt that the information
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sent to the Contracting Authority was indeed false and that the Bulgarian beneficiary
had not held joint events in Bulgaria and Spain with the Spanish company.
The proceedings ended on 10 February 2017 with a settlement concluded between the
manager of the Bulgarian legal entity and a representative of the Bulgarian
Prosecutor’s Office and approved by the Bulgarian court. The accused
pleaded guilty
of the offence. The manager of the Bulgarian legal entity was sentenced to a two-year
prison term, suspended for 4 years on the basis of Article 66 of the Criminal Code, and
fined BGN 5 000.
8.2.
Belgium
The fraud was perpetrated in the European market for carbon dioxide emissions, the
Emissions Trading Scheme (ETS). In operation since 2005, the scheme involves some
11 000 undertakings in the 27 Member States.
Each undertaking is allocated a quota of emissions allowances. If an undertaking
exhausts its emissions quota, it must buy ‘emissions credits’ from another undertaking
which has not used up its emissions quota and so has a surplus to sell on the ETS
market, which takes various forms: spot market, futures or OTC transactions. The
majority of undertakings use intermediaries.
The main trading hub is the Bluenext carbon exchange which handles almost 90 % of
transactions (approximately EUR 10 billion in 2008), and most of the fraud took place
on the Bluenext spot market.
The fraudsters took advantage of the fact that VAT was levied on CO2 transactions in
all EU countries except the UK. They bought their tonnes of CO2 in the UK and then
sold them on in countries levying VAT. However, instead of paying the VAT back to
the state concerned, they kept it for themselves.
By carrying out a series of these operations in different places and between the on-the-
spot and OTC markets, the fraudsters were able to build up a substantial amount of
non-reimbursed VAT. This technique was particularly easy to transfer to the carbon
market since the tonnes of CO2 at stake are ‘invisible assets which are difficult to
trace’.
The transactions are visible only on paper.
The fraud was detected in 2009 on Bluenext. The FR administration was quick to
adopt a provision to scrap VAT on emissions allowances while NL opted to have the
buyer reimburse the VAT to the state. However these decisions designed to clean up
the market are in breach of the EU VAT Directive in force since 2007. The EU is due
to announce proposals for amending the Directive to tackle the fraud problem in
September, while restoring the unity of tax rules across the Union.
The fraud revelations have undermined the image of an emissions market already
misunderstood by the public.
‘Law-abiding
operators
deplore the negative impact of all of this,’ says Emmanuel
Fages, analyst at Orbeo, a subsidiary of Société Générale. ‘We are constantly trying to
demystify the market. It is actually a normal commodity market. What happened can
be put down to teething problems.’
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The bad publicity generated by the fraud uncovered in Europe could also have a
negative impact on the discussions to establish a similar market in the US.
8.3.
Greece
Check on the reasonableness of costs/identification of artificial, non-competitive
tender prices via databases/reference prices, cross-checking tenders by any available
means:
Study on the creation of a database of reasonable costs of equipment and building
infrastructure for the investment measures of the 2014-2020 Greek Rural Development
Programme. The first deliverable (D1), entitled ‘Methodology for the analysis and
processing of cost data’ was submitted on 15
September 2017 and is a study on the use
of cost data and methods for assessing the reasonableness of costs of machinery and
building infrastructure.
The intermediate database (D2) was delivered in December 2017 and may be used on
a pilot basis to verify the reasonableness of costs for the Programme’s investment
operations for the period up to submission of the final database in April 2018.
The database of reasonable costs of equipment and building infrastructure for the
investment measures of the 2014-2020 Greek Rural Development Programme will
help to strengthen the procedures to verify the reasonableness of costs of investment
operations at the assessment and control stages, and consequently mitigate the risk of
cost overruns for the projects under the investment measures.
8.4.
Finland
On 23 February 2017 Finnish Customs seized a consignment of 690 kilos of water-
pipe tobacco that had arrived from the United Arab Emirates. The consignment had
been placed under the customs transit procedure and the contents declared as hand-
washing powder destined for Latvia. However, the consignment of goods placed under
the customs procedure did not go to Latvia. Instead, an attempt was made to send it to
Germany, as a duty-free shipment by a carrier operating in Vantaa. A decision was
taken to check the consignment, at which point the boxes were found to contain one-
kilo plastic bags full of water-pipe tobacco.
Customs suspect that water-pipe tobacco had been smuggled in the same way on five
other occasions since December 2016. All of the consignments had been sent from the
United Arab Emirates and all were declared as containing hand-washing powder
destined for Latvia. All of the consignments were collected by the same Latvian man,
who loaded the packages containing the water-pipe tobacco into his van and took them
to a carrier operating in Vantaa for onward transport to France, where the consignees
were private individuals. The man then drove the empty van back to Latvia, where he
loaded the vehicle with the cheapest possible washing powder which he then cleared
through Latvian customs. It became clear in the preliminary investigation that there
was a Russian man behind the operation who had also employed the Latvian to
smuggle the consignments of water-pipe tobacco. A European arrest warrant was
issued for the Russian, which led to his arrest in Croatia and his transfer to Finland.
The investigation found that a total of 3 080 kilos of water-pipe tobacco had been
smuggled on six separate occasions and the tax and import duties evaded on these
consignments amounted to over EUR
1 143 000. Customs’ share of the payments was
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EUR 221 464 and VAT accounted for EUR 278 554. Excise duty accounted for EUR
643 500 of the taxes evaded. This was regarded as a serious case of tax fraud. Vantaa
District Court handed down a judgment in the case on 8 December 2017. Both men
were sentenced for all six consignments. The Russian, as the main perpetrator,
received a 3-year sentence and the Latvian courier was sentenced to 2 years. They
were also ordered to pay damages of over EUR 885 000 for the consignments of
water-pipe tobacco that were not seized.
8.5.
Croatia
Fund- Criminal act committed
European Agricultural Guarantee Fund (EAGF, 2014-2020)
Falsified/incorrect accounts
Modus operandi
Paying Agency on 11 January 2017 received a letter from the Managing Authority
through which it was informed of the irregularity identified in the beekeeping sector in
the case of the applicant requests.
The applicant applied for subsidies in 2014 and received the requested amount paid by
the Paying Agency on the basis of measure “Suppression of Vaginal Abduction”
(Annex XII) in accordance with the Ordinance on the Conditions and Methods for
Implementation of Special Aid Measures for the Beekeeping Sector in 2014 under the
National Beekeeping Program for the period 2014-2014.
Managing Authority performed inspection by the implementation of subsequent
controls of large beneficiaries of the aid in the beekeeping sector in order to determine
whether the transactions constituting part of the system of financing by the European
Agricultural Guarantee Fund were actually carried out and whether they were carried
out correctly.
In addition to the applicant some other legal entities were also under the control and
with the control of the trade records and the tax administration's findings, an
irregularity was found in relation to the total amount of aid requested by the applicant
because the claimant after the payment made the account overlap and in this way
gained support on the amount with VAT included.
However provision of Article 8 paragraph 2 of the Ordinance stipulates that the unitary
amount of aid implies the monetary value of the veterinary medicinal product without
VAT required for one single-bee vascular treatment.
Actions initiated
Due to the established suspicions of the illegal use of funds, the Managing Authority
informs the competent institutions - the Ministry of Finance and the State Attorney's
Office of the Republic of Croatia, pursuant to Article 258, paragraph 1 of the Criminal
Code.
Furthermore, as regards irregularities related to the issuance of trade documents
(invoices and approvals for transferred rebates and VAT) by controlled legal entities,
pursuant to Article 169 of the Agriculture Act, it is given the instructions that it should
be notified to the competent Ministry of Finance, Independent Tax Fraud Disclosure
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(Tax USKOK), ie Tax Administration, and the Inspection Service of the Ministry of
the Interior.
8.6.
Hungary
EAFRD - Attempt to use falsified supporting document
Under Government Decree No 272/2014 of 5 November 2014, when submitting an
advance payment request for support from EAFRD funds the beneficiary must provide
collateral equal to the amount of the advance payment. Prior to the advance payment
request, the beneficiary attempted to prove by means of a bank guarantee that the
amount serving as collateral for the advance payment requested was available. The
Rural Development Programme paying agency contacted the credit institution that had
issued the bank guarantee to check the bank guarantee’s authenticity. The credit
institution replied that it had not issued a bank guarantee with the reference number in
question. After receiving this reply, the paying agency took the necessary measures by
informing the competent investigative authorities and reporting the suspected fraud to
the RD MA. As a result of this report, the RD MA cancelled the grant document and
no advance payment was made.
8.7.
Italy
Traditional Own Resources
–
Activities to combat the smuggling of foreign
manufactured tobacco products
The Economic and Financial Police Units of the Napoli Guardia di Finanza (Finance
Police), as part of efforts made to prevent and combat cigarette smuggling, conducted
a complex investigation that led to the seizure of nine tonnes of ‘cheap white’
cigarettes destined for the port of Misurata, Libya.
The significance of this result, as well as the large quantity of manufactured tobacco
seized, is connected with the particular criminal method the fraudsters used in an
attempt to circumvent the anti-smuggling network implemented at national and intra-
EU level.
Specifically, taking advantage of the possibility of transporting foreign manufactured
tobacco intended for export to EU countries within the EU under deferred tax
arrangements, the criminal organisation planned a fictitious shipment of goods arriving
from Romania on a container which was to be loaded at the port of Salerno before
sailing on to the port of Misurata.
This method of transportation would have meant that, if any checks had been carried
out in Italy, the shipment of foreign-manufactured tobacco would not have been
considered smuggled and thus subject to seizure, since it was officially intended for
the non-EU market and not the national market.
In fact, by using an aircraft to follow the road route taken by the suspect container, the
police team
found that the fraudsters had used a second, ‘dummy’ container, of the
same shape and colour and affixed with fake labels displaying the same serial number
as the container coming from Romania.
The ‘dummy’ container, loaded with fake ‘goods’ such as empty
boxes and bricks,
would therefore have been the one which would have actually reached Misurata,
allowing the fraudsters to release for consumption in Italy the manufactured tobacco
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coming from Romania on board the original container. The investigation thus led to
the arrest of the two fraudsters and the seizure of nine tonnes of cigarettes, intended to
be sorted and transferred to secret warehouses.
8.8.
Lithuania
On 17 November 2017, Financial Crime Investigation Service opened a pre-trial
investigation concerning fraud, forgery of documents and fraudulent management of
accounting.
The investigation proceedings were initiated having conducted the analysis of project
No. 3VK-KP-10-2-
003762 “Development of Peat Extraction by UAB Agrodurpės” implemented by UAB
Agrodurpės and having identified that the application was submitted to the National
Paying Agency under the Ministry of Agriculture (further
–
Agency) within the
framework of the Measure “Support to Business Creation and Development” of the
Rural Development Programme for Lithuania 2014–2020 even though the project did
not represent agricultural activity, provision of agricultural services, crafts or
establishment of crafts centres. Total project value is EUR 622.581,09 out of which
EUR 404.678 represents the EU support.
In the course of the project implementation, UAB Agrodurpės declared to the Agency
the purchase of different machinery for peat exploitation from UAB Specagra. It was
established, however, that UAB Agrodupės was set up by use of the third
parties and
its financial activities were coordinated by the director of UAB Specagra because the
latter company failed to comply with the requirements set up for beneficiaries in the
afore-mentioned programme, which prevented it from applying for the EU support. In
order to obtain the EU support by fraud, in the run of the project implementation fake
public procurements were organised with the award of contracts to UAB Specagra as
well as Specagra OU and UAB Agroteka managed by the same shareholder who
artificially increased the prices of the machinery. The investigation also identified that
in the mentioned transactions the managers of UAB Agrodurpės and UAB Specagra
engaged in secret agreements regarding the acquisition of extra machinery that was not
foreseen in the project documentation.
To mislead the Agency and disguise the extra machinery illegally included in the
project documentation, the managers of the above-mentioned companies forged the
purchase documents and submitted them to the Agency for the compensation of the
expences. Then in order to conceal the committed offences, the managers of UAB
Agrodurpės at the time of on-site
inspections concealed from the Agency staff the
illegally purchased machinery by not registering and including it in its accounting in
accordance with the procedure established by the Agency.
The investigation revealed that the managers of UAB Agrodurpės in collaboration
with the director of UAB Specagra, seeking to acquire high value property by fraud
(EUR 404.678 of the EU support and national budget funds), set up the company for
committing criminal acts and together with the director of Specagra OU (Estonia)
submitted to the Agency forged documents.
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8.9.
Latvia
EU structural funds, ERDF- increasing the price of the machinery in fraudulent
manner.
State Police of Latvia in year 2013 started criminal procedure against company’s X
officials for possible fraudulent activities with purpose to defraud EU fund money in
big amount.
In public procurement procedure won company A, which was supposed to deliver
machinery. In 29 August 2006, Company A informed the beneficiary that they could
not deliver one position of the machinery.
Decision was made that the second participant in public procurement procedure
company Y will deliver that position of the machinery.
From the materials of the case can see that company’s Y chairman A.B. personally
knew the company’s X official K.M. In addition, company Y didn’t deal with trade
and delivery of that kind of machinery.
During the investigation investigators found out that company X transferred the
purchase price to Company Y approximately 607 313,00 EUR. In 2006 and 2007
company Y transferred approximately 617 400,00 EUR to company Z which was
closed up in 2013 and the chairman of the company V.D.
from the 2013 doesn’t have a
declared place of residence and has several convictions.
Investigators has suspicions that officials of companies X, Y and Z had an agreement
to increase the price of machinery and in the end price which was paid for the
machinery came back to company Y using the carousel transfers involving companies
Y and Z.
Request for legal aid was sent to Bosnia and Herzegovina and investigators got the
information that the machinery was bought there for 200 000,00 EUR and that the
condition of the machinery- used. From the documentation, which investigators got,
they saw that company X official K.M. agreed with seller about buying concrete
machinery, which proves that company X official was aware about the real price and
condition of the machinery.
Thus, the K.M. as a representative of beneficiary mislead the Latvian intermediate
body- LIAA about the real price and condition of the machinery and received EU
funded money for that concrete machinery in fraudulent manner. And companies Y
and Z was involved in this scheme with purpose to increase the price of machinery. In
this scheme K.M caused damage to LIAA in amount of 325 969, 15 EUR.
In 2017, K.M. was declared as a suspect in criminal procedure.
In July of 2017 this case was sent to Prosecutors Office.
8.10.
Netherlands
Preventing the double declaration of costs for a participant involved in different
projects. The check is carried out by comparing BSN numbers. No fraudulent activity
in 2017 was revealed by the check.
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8.11.
Romania
Cohesion policy, EAFRD - Violation of the public procurement rules for private
beneficiaries established by AFIR in connection with the construction of boarding
houses;
LP, the owner of X SRL (construction company) persuaded his wife and two
daughters to set up the companies X1, X2, X3 SRL in order to obtain grants for the
construction of tourist boarding houses in a rural area. The AFIR rules stipulated that
contracts for works and the supply of goods had to be concluded by beneficiaries who
were to have no interest in the supplying companies at the time of concluding the
contracts (they should not be in a situation giving rise to a conflict of interest). The
beneficiaries accordingly submitted a declaration of honour, rendering them liable to
sanctions in the event of false declaration.
The beneficiaries X1, X2 and X3 concluded works and supply contracts with the
companies GA, GD and LA SRL, the links between these companies and LP’s family
being as follows:
GA was a beneficiary of European funds for the construction of a boarding house, and
X was the builder;
GD was owned by the husband of one of LP’s daughters;
LA was owned by a close associate of LP, a beneficiary of European funds for the
construction of a boarding house, and X was the builder;
None of the companies GA, GD or LA had any experience in construction or the
supply of goods.
What is more, GA and GD (builders) took on staff from X SRL in order to build the
boarding houses.
X1, X2 and X3 and the suppliers GA, GD and LA on the one side and X on the other
used a fraud scheme to certify that payments were made under the projects, in order to
justify the grants.
Thus, X1-X3 borrowed money from X to pay GA, GD and LA (builders and
suppliers), and they immediately transferred the money received to X, on the same
day, by means of successive transactions. There was thus an understanding between all
of these companies that the real contractor for the works and the real supplier of the
goods was X. The declarations made by the beneficiaries to the effect that they did not
find themselves in situations constituting a conflict of interests were therefore
fraudulent documents submitted to AFIR for the purpose of obtaining grants for the
three projects concerned.
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