THE CO-OPERATION AGAINST FRAUD IN THE EUROPEAN UNION

EUROPEAN FIGHT AGAINST FRAUD  ARTICLE 280 OF THE EC TREATY  [ CONVENTION ON THE PROTECTION OF EU FINANCIAL INTERESTS (1996)]  ON-THE-SPOT CHECKS AND INSPECTIONS : REGULATION n° 2185/1996  OBLIGATION TO COMMUNICATE IRREGULARITIES : worked out in sectorial legislation (own resources, agricultural funds, Structural Funds)  A CLOSER PARTNERSHIP WITH CANDIDATE COUNTRIES: THE ANTI-FRAUD COORDINATION SERVICES.

THE PROTECTION OF THE EU FINANCIAL INTERESTS IN THE TREATY

ARTICLE 280 OF EC TREATY  1. The Community and the Member States shall counter fraud […] through measures […] which shall act as a deterrent and be such as to afford effective protection in the Member States.  2. Member States shall take the same measures to counter fraud affecting the financial interests of the Community as they take to counter fraud affecting their own financial interests. [PRINCIPLE OF EQUIVALENT PROTECTION]  3. Without prejudice to other provisions of this Treaty, the Member States shall coordinate their action aimed at protecting the financial interests of the Community against fraud. To this end they shall organise, together with the Commission, close and regular cooperation between the competent authorities.  4. The Council acts in accordance with the co-decision procedure. These measures shall not concern the application of national criminal law or the national administration of justice.  5. The Commission […] shall each year submit […] a report on the measures taken for the implementation of this article.

EU BUDGET EXPENDITURE HEADINGS

EUROPEAN BUDGET RESOURCES

INTERNAL CONTROL TO PROTECT EU FINANCIAL INTERESTS DGs OLAF Current application of Communituy law Existence of an irregularity or serious matter related to professional duties Possible criminal responsibility of individuals Functioning of management and control systems Systematic verification of financial operations Effected according to pre- determinated criteria Initiated following strong indications of possible irrregularities Research and collection of elements of prrove CLEARANCE OF ACCOUNTS : MS PAY INDIVIDUALS OBJECT WORKING METHOD RESULTS

REGULATION 2185/1996 ON-THE-SPOT CHECKS AND INSPECTIONS

 Adopted in 1996  Main instrument awarded by the EU Treaty : checks and inspections to the economic operators.  Sets up EC’s powers and Member States’ obligations on checks and inspections carried out by EC inspectors. REGULATION 2185/1996 ON CHECKS AND INSPECTIONS

EFFECTIVE AND DETERRENT MEASURES  Apply to all areas of the Community activity  Dealing with the detection of serious trans- national irregularities  Do not affect the criminal competences of the Member States REGULATION 2185/1996 ON CHECKS AND INSPECTIONS

EQUIVALENT PROTECTION  EC inspectors have access to information and documents under the same conditions as national inspectors.  Reports prepared by EC inspectors constitute admissible evidence in administrative or judicial proceedings in the same way and under the same conditions as reports drawn up by national inspectors.  Information must be covered by professional secrecy and protected in the same way as similar information is protected by the national legislation of the Member State.  Obligation for Member States under the national law, and at the Commission’s request, to safeguard evidences REGULATION 2185/1996 ON CHECKS AND INSPECTIONS

OBLIGATION TO CO-OPERATE  Checks and inspections prepared and conducted in close cooperation with MS.  Officials of MS may participate in checks and inspections.  Economic operators have to collaborate with the EC and MS inspectors (grant access to premises, lands, etc.).  If economic operators refuse, MS must assist the EC inspectors to allow them to discharge their tasks REGULATION 2185/1996 ON CHECKS AND INSPECTIONS

OBLIGATION TO COMMUNICATE SUSPICIONS OF FRAUD MS shall forward to the OLAF without delay any information relating to possible fraud or irregularity MS shall forward any document or information which relates to a current internal investigation MS shall send the OLAF any document or information pertinent related to the fight against fraud affecting the EC’s financial interests

A CLOSER PARTNERSHIP WITH CANDIDATE COUNTRIES : THE ANTI- FRAUD COORDINATION SERVICES HOW TO MONITOR THE ACQUIS

A CLOSER PARTNERSHIP WITH CANDIDATE COUNTRIES  Establishment of Anti-fraud Coordination Structures in candidate countries : AFCOS.  Assistance to new Member States to reinforce their own capacities for fighting fraud THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

ESTABLISHMENT OF AFCOS IN CANDIDATE COUNTRIES  AFCOS : Anti-Fraud Co-ordination Service  2 main tasks : co-ordination and co-operation  Status : multidisciplinary character, operational independence and promoting inter-institutional co- operation  OLAF support : institution building, technical assistance and operational support THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

2 MAIN TASKS FOR AFCOS : CO-OPERATION AND CO- ORDINATION

CO-ORDINATION OF ALL LEGISLATIVE, ADMINISTRATIVE AND OPERATIONAL ASPECTS OF THE PROTECTION OF EC FINANCIAL INTERESTS  Lead role in a comprehensive national anti-fraud strategy  Identification of weaknesses in the management of EC funds and pre- accession funds (PHARE, ISPA, SAPARD)  Initiation of necessary legislative and administrative measures and adaptations to protect EC financial interests  Dissemination of information to authorities responsible for management of EU funds (i.e., Structural funds)  Definition of training needs of the different institutions and bodies involved in protection of EC financial interests THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

CO-OPERATION WITH THE COMMISSION AND THE MEMBER STATES  Ensuring co-operation between the national administration, investigation and prosecution authorities and between these authorities and the Commission (OLAF).  Exchange and provision of relevant information to the Commission (OLAF) in cases of suspected fraud and other irregularities affecting the EC financial interests, including pre-accession funds.  Provision of assistance and advice to other institutions and bodies involved in the protection of EC financial interests.  Developing training programmes and modules about the different aspects related to the protection of the EC financial interests. THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

AFCOS’ STRUCTURE AND STATUS

CO-OPERATION ARRANGEMENTS CONCLUDED CO-OPERATION ARRANGEMENTS CONCLUDED HU Ministry of Finances (Hungarian Customs and Finance Guard) EE Ministry of Finances (Financial Control Department) CZ Supreme Public Prosecutor’s Office CY Attorney General’s Office BU Ministry of Interior ROM Prime Minister’s Inspection Department SK Prime Minister’s Department (Control Section) SL Ministry of Finances (Budget Supervisory Service) PL Ministry of Finances (International Bureau Treasury Relations) LI Ministry of Interior (Financial Crime and Investigation Service) LV Ministry of Finances (IAD) MT Ministry of Finances (Internal Audit and Investigations Directorate) OLAF

MULTI-DISCIPLINARY CHARACTER  Preferably composed of experts coming from the different national departments responsible for investigations dealing with EU funds  Which experts? Some examples :  Administrative control authorities  Treasury control authorities and state auditors  Experts in VAT and taxation matters  Customs and border guards  Prosecuting authorities THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

OPERATIONAL INDEPENDENCE  Legal mandate that guarantees its independence in operational matters  Therefore, AFCOS should be able to :  Request an authority to analyse information related to irregularities or cases of suspect fraud  Request the authority to initiate an investigation  Request to be informed of the results of such an investigation THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

FOSTERING INTER-INSTITUTIONAL COOPERATION  AFCOS should count on the support of other national institutions or bodies involved in the protection of EC financial interests.  It would be suitable binding agreements between AFCOS and these other institutions or bodies  Administrative and legislative framework of the candidate country should facilitate AFCOS’ activities THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

OLAF SUPPORT TO THE ESTABLISHMENT OF WELL- FONCTIONING AFCOS IN CANDIDATE COUNTRIES

INSTITUTIONAL BUILDING  Training sessions and seminars on specific topics related to fight against fraud affecting the EU budget  Expertise and advise on different key topics (organisational structure, mandate, competencies…)  Eventually, host trainees from AFCOS within its organisations THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE  Advice to the candidate countries on the adequate equipment needed to improve the operational capacity  Co-financing for the purchase of technical equipment used by AFCOS in the framework of fight against fraud THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

OPERATIONAL SUPPORT  Deployment of OLAF Regional Assistants in certain candidate countries  Judicial and technical expertise in inquiries related to irregularities and cases of suspect fraud THE ANTI-FRAUD COORDINATION SERVICES (AFCOS)

Thank you very much for your attention!