European Anti-Fraud Office Research Articles

The fight against illegal tobacco products

This paper addresses the pressing issue of combating illicit tobacco products, emphasising the legal frameworks at both the national and European levels. It explores the roles and activities of various authorities dedicated to preventing illegal tobacco trade, including the European Anti-Fraud Office (OLAF) and the Criminal Office of the Financial Administration of the Slovak Republic. The study delves into the legislative landscape governing tobacco products, assessing its effectiveness in adapting to the evolving tactics of smuggling networks. In particular, the paper scrutinises how Slovak and European regulations align to counteract the sophisticated and increasingly complex strategies employed in illegal tobacco trafficking. Statistical data highlights the prevalence of contraband tobacco in Slovakia, illustrating the financial, health, and societal ramifications of the black market. The findings also point to a correlation between high tobacco prices and an increased likelihood of exposure to illicit products. Furthermore, the research supports hypotheses regarding the adaptability of Slovak legislation to contemporary tobacco consumption trends and the critical role of inter-European collaboration in enforcement efforts. However, it also identifies potential areas for legislative improvement, particularly in streamlining tobacco regulation. This study contributes valuable insights into the challenges and successes of the Slovak Republic’s ongoing fight against the illegal tobacco trade.

The eu’s policy towards modernizing the legislative framework on anti-corruption anti-corruption reforms in bulgaria

This article explores the EU’s anti-corruption legislation and policy framework, with a focus on Bulgarian reforms. It reviews key EU directives and institutions involved in combating corruption, and assesses Bulgaria’s progress and alignment with EU standards. The study examines the successes and challenges of Bulgarian anti-corruption measures through comparative analysis and case studies, offering insights into the effectiveness of these initiatives. Key EU bodies such as the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) are highlighted. Key terms include EU legislation, anti-corruption policy, Bulgaria, judicial reforms, and EU directives.

Some Aspects Related to the Competent Bodies in the Matter of Budgetary Control

The fight against fraud needed regulation, and even more, to be the main object of the activity of specialized bodies. Thus, in 1988, the task force "Anti-Fraud Coordination Unit" was created, formalizing the fight against fraud and corruption and protecting the EU's financial interests. In 1995 (July 26), through Council Act 95/C 316/032, the "Convention on the protection of the financial interests of the European Communities" was introduced. In 1999, OLAF (the European Anti-Fraud Office) was established, so that in 2017 (12 October) to establish the European AntiCorruption Prosecutor's Office - EPPO, through Council Regulation (EU) 2017/19393. EPPO becomes operational from June 2020.

The Investigation of European Anti-Fraud Office (OLAF) on Customs Fraud

臺灣與歐盟貿易往來緊密，卻往往因部分廠商涉及逃漏反傾銷稅之行為，迭受歐盟反詐欺局之調查；又因不了解歐盟法規，致使臺灣出口商品常處於被歐盟課徵反傾銷稅的風險中，而影響臺灣出口貿易甚鉅。因此，本文將藉由說明歐盟反詐欺局對於諸如逃漏反傾銷稅之海關詐欺行為之調查，以期拋磚引玉，提升實務及學界對此一議題之關注。

Radca prawny w postępowaniach prowadzonych przez „nowy” OLAF i EPPO

Attorney-at-law in the proceedings conducted by the new OLAF and EPPO The article extensively discusses the issue of combating broadly understood white-collar crime and crimes affecting the interests of the European Union, per the PIF Directive, as well as the new police and investigative powers of the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO). The author not only discusses OLAF’s policing and investigating powers but also points to the role of an attorney-at-law as a person who serves both advice and ensures that procedural guarantees are observed. By presenting in detail the catalogue of procedural guarantees and the role of the Controller of Procedural Guarantees, the author indicates the mechanisms of ensuring the protection of the person who is subject to EU investigation as well as presenting the necessity for a support of a professional legal representative. The detailed description of procedural guarantees is followed by postulates of strengthening the independence and expansion of the system of protection of procedural guarantees by providing it with an independent back office and establishing Controllers of Procedural Guarantees in countries where OLAF will be the leading institution of European investigations (Poland, Hungary, Sweden, Ireland and Denmark).

The protection of the EU financial interests between administrative and criminal tools: OLAF and EPPO

The article argues that both administrative and criminal tools are necessary for the protection of EU financial interests and that the mechanisms of cooperation between OLAF and the EPPO are suitable to foster a functioning collaboration. However, criticisms still emerge, both on the functioning of OLAF, and as regards operational activities of the EPPO and its cooperation with national prosecutors. Guarantees for private parties involved in administrative and criminal investigations cannot be ignored, and several shortcomings in the system of judicial protection need to be addressed. Effectiveness of the system and protection of guarantees should not be considered separate, especially in the context of the challenges that Next Generation EU (NGEU) raises for the protection of EU financial interests. Guarantees such as legal certainty and independence of the judiciary, are basic tenets of the rule of law, which, as set out in the Conditionality Regulation and further clarified by the ECJ, is in itself a condition for effectively protecting EU financial interests. European Anti-Fraud Office, OLAF, European Public Prosecutor Office, EPPO, protection of EU financial interests, institutional cooperation, EU criminal law, legal certainty, judicial protection

PROTECTION OF THE EUROPEAN UNION BUDGET THROUGH THE ACTION OF THE EUROPEAN PUBLIC PROSECUTOR’S OFFICE (EPPO)

The European Commission for the protection of the budget has numerous legislative and administrative tools at its disposal, and implements the same through the Regulation on conditionality regarding the rule of law, guidelines for its implementation, then activities to prevent conflicts of interest, protection measures (every euro is spent in accordance with the rules and it creates added value, the activities of the European Anti-Fraud Office (OLAF), public internal control and internal control. The EPPO started work on 1 June 2021. The Regulation establishing the European Public Prosecutor’s Office entered into force on 20 November 2017. year, and currently 22-member states are participating. The aim of this research was to show the operational activity and conducted investigations of the EPPO for the territory of the member states, and for the territory of the Republic of Croatia, through indicators of reports received, investigations conducted, damage caused, assets seized, areas where commit frauds, i.e. determine a certain typology and modes that are used in frauds tan. To obtain the results, the method of content analysis and related statistical method was used, which analyzed several groups of indicators, followed by the method of compilation and classification, which classified the analyzed content into groups. The obtained research results indicate that since the beginning of its work, the EPPO has received 2,832 reports/complaints regarding fraud with EU money and opened 576 investigations, in which the total damage was estimated at 5.4 billion euros, of which nine investigations were opened in Croatia. with an estimated damage of 30 million euros. The largest number of investigations was opened in Italy, 120, and in Bulgaria, 103. Observing the typology of punishable acts, it is clear that the most numerous were frauds related to costs not related to procurement, of which 313 were determined. The estimated damage in nine frauds in the Republic of Croatia amounts to EUR 30.6 million, and the frauds are unfortunately characterized by the involvement of local, but also high government officials. As a rule, in the course of this body’s actions, criminal offenses are recorded in bankruptcy, most often subsidy fraud, forgery of documents, abuse of position and authority, receiving and giving bribes. In conclusion, the establishment of this body can be fully justified, because in addition to a large number of open investigations, the EPPO has confirmed its work with successfully filed indictments and first verdicts against the perpetrators, as well as confiscated property benefits.

Aspects of Cooperation in Detecting and Combating Tax Evasion Between the ANTI-Fraud Departament (DLAF) and the European Anti-Fraud Office (OLAF)

This article is dedicated to the collaboration of the Department for the Fight against Fraud (DLAF) as a national body responsible for detecting and combating tax evasion with the European Anti-Fraud Office, known as OLAF (French acronym - Office de Lutte Anti-Fraude).
 The paper will present: in the first point general notions about the two institutions; in the second point we will present the provisions of art. 23- art.31 of Law no. 61/2011 on the organisation and functioning of the Department for the Fight against Fraud (DLAF); in the third point we will present a series of actions related to European funds: PHARE, ISPA, SAPARD, POSDRU, EAFRD from the activity reports of the Department for the Fight against Fraud (DLAF).
 We will take into account the following regulations when drafting the article: Law no. 61/2011 on the organisation and functioning of the Department for the Fight against Fraud (DLAF), Government Decision no. 738/2011 approving the Regulation on the organisation and functioning of the Department for the Fight against Fraud and other regulations to which these regulations refer, Decision no. 1999/352 of 28 April 1999 of the European Commission establishing the European Anti-Fraud Office (OLAF).

Reports and the their annexes prepared by the European anti-fraud office in the pre-trial criminal proceedings

The article is related to а specific procedure – the inclusion and application of the reports and their annexes prepared by the European anti-fraud office (OLAF) in the Bulgarian pre-trial proceedings. The reports and their annexes are prepared according to Regulation 883/2013 which regulates all the activities of OLAF in the EU and third countries. The reports and their annexes are a specific tool for our legislation and they can be used in the pre-trial proceedings as written proof tools according to the Bulgarian Criminal Procedure Code. This article explains the OLAF’s structure and the practical application of the OLAF’s reports and their annexes during the pre-trial investigation and focuses on the main problems which are encountered in the investigation practice related to their application as well.

FEATURES OF FINANCING THE SOCIAL POLICY OF HUNGARY

The issues of correlation of national and supranational sources of financing of the social sphere in Hungary are investigated. Due to the potential impact of all EU structural funds on the development of the social sphere and the difficulty of strictly scientific measurement of the contribution of each of them to social development, special attention is paid to the projects of the European Social Fund in Hungary. An analysis of the available information on completed and ongoing projects showed a noticeable focus on local issues and very little impact on national priorities. In connection with the accusations of the Hungarian opposition in the misuse of funds from EU funds, the country's authorities examined the relationship between Hungary and the European Anti-Fraud Office (OLAF). It is noted that Hungary has a fairly effective and fully compliant system for monitoring and using EU funds. To date, OLAF has not identified any abuse of funds from the ESF. Preliminary assessments of the possibilities of Hungary for the long-term provision of humanitarian assistance to Ukrainian refugees on the territory of Hungary have been made. It is pointed out that the continued influx of refugees and the growing number of people who want to choose Hungary as a destination country complicates the implementation of the current social policy, especially in the context of the implementation of election promises.

Multi-level Administration, Inspections and Fundamental Rights: Is Judicial Protection Full and Effective?

AbstractIn the last decades, an increasing number of EU institutions and agencies have been given the power to conduct administrative inspections. While the legal literature has traditionally focused on the Commission’s inspection powers in competition proceedings, the European Anti-Fraud Office (OLAF), the European Central Bank (ECB), the European Securities and Markets Authority (ESMA), the European Aviation Safety Agency (EASA), and the European Fisheries Control Agency (EFCA) are also entrusted with such powers. The Commission has also been granted inspection powers in the field of Food Safety. Inspection powers can have a crucial impact on the fundamental right of the inviolability of the home, recognized by the Court of Justice as a general principle of EU law, and protected under Article 8 of the European Convention of Human Rights (ECHR) and Article 7 of the EU Charter of Fundamental Rights (ECFR). This Article argues that the current remedies do not fulfill all the criteria set forth by the Strasbourg Court for ex post judicial control vis-à vis inspections to be full and effective, in particular when these powers are used in the context of composite procedures, and suggests remedies to improve the system of review, in order to effectively protect fundamental rights.

Cooperation with EU agencies and bodies under the EU–UK Trade and Cooperation Agreement: Eurojust, OLAF and the EPPO

This article will examine the provisions of Part III, Title VI of the Trade and Cooperation Agreement (TCA) on Eurojust. While the agreement in the TCA with regard to Eurojust allows cooperation to continue, the new arrangements amount to a significant change. The article also looks at cooperation between the UK and other EU agencies, specifically the European Anti-Fraud Office and the European Public Prosecutor’s Office, concluding that the practical impact of the UK’s departure from the EU is unlikely to be significant.

Способи гарантування економічної безпеки держави з використанням практичного досвіду митних служб деяких країн світу

Annotation. Introduction. As fraudulent trade on the whole and misdeclaration peculiarly are regarded to be the most negative factors influencing national and world economics, the effective measures to counteract their disadvantageous impact are of great importance. Problem of misinvoicing has been studied by many researchers including special investigations undertaken by international anti-fraud organizations such as European Anti-Fraud Office, Global Integrity and others. Scientific theoretical and empirical methods of research are usually used, such as comparative analysis and mathematical statistics, which illuminated a lot of evidence facts of over and under invoicing by export and import used to move money across the borders, evade taxes or reduce tax liabilities. Purposee. The objective of this research is to analyze promising approaches of different countries used to combat fraud and ensure safe international trade as well as define the most effective instruments which should be implemented by the State Customs Service of Ukraine to ensure enhancing the customs valuation control measures. Methods. To accomplish the research task, general scientific methods were applied, such as inductive logic, comparative analysis, classification and generalisation. Results. The World Customs Organization concept of effective and transparent revenue collection is comprehensively examined in this paper focusing special attention on the implementation of international requirements to customs valuation procedure in Ukraine. Certain practical instruments were proposed to diminish the destructive effects and enhance the efficiency of customs control facilities. The main stages of creation and introduction of the national customs valuation database of goods as an effective tool of risks-oriented customs control are investigated. Shortcomings of the existing mechanisms affecting the feasibility of practical implementation of such elements in Ukraine are identified. The necessity of transformation of the existing system of customs value control is evidenced in the view of ensuring economic and customs security of the state and simplifying foreign trade procedures. Good practices of other countries on overcoming and stopping fraudulent importers’ activities are examined and the possibility of introducing their elements into customs authorities of Ukraine is studied. Conclusions. The article identifies the main directions of ensuring the effective functioning of the customs risk management system in the field of customs valuation control in Ukraine. The possibilities of the implementation model proposed by WCO has been estimated. The advantages and disadvantages of different types of price databases used by customs authorities of other countries have been revealed in the article. The main assumptions concerning the development of customs valuation control strategies have been evidenced by good practice cases. As a result a promising strategy is outlined for the development of new methods of customs valuation control in Ukraine. Keywords: customs valuation; control, fair prices; national customs declarations database.

The European Anti-Fraud Office and the European Public Prosecutor’s Office : A Work in Progress

The European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) are the two investigative bodies at the EU level that together will effectively detect, investigate, and protect the EU’s financial interests by combining the strengths of an administrative investigation with those of a criminal investigative approach. This article outlines in concrete terms how this cooperation is being organised. It illustrates how both offices have been equipped to follow the trail of money irregularly spent on criminal organisations, fraudsters, and corrupt individuals. It also explains the links between the two offices, the new legal framework at the basis of their cooperation, and their operational relationship. Lastly, the authors give a preview of future challenges and opportunities, with a view to outlining improvements that will contribute to the common goal of both bodies: the protection of the EU’s financial interests.

Protecting the EU’s Financial Interest in the New Recovery and Resilience Facility – The Role of the European Anti-Fraud Office

The Recovery and Resilience Facility (RRF) is a key initiative providing up to €723.8 billion in support of Europe’s economic and social recovery from the Covid-19 pandemic. In light of the unprecedented scale and delivery mechanism of the Facility, the question arises as to how the European Union’s financial interests in the RRF will be protected against fraud and corruption? To answer this question, this article provides an analysis of the legal safeguards in the EU’s Regulation establishing the Recovery and Resilience Facility for the protection of the EU’s financial interests. It also gives a practitioner’s view of the role of the European Anti-Fraud Office (OLAF) in the Commission’s assessment of the national recovery and resilience plans and describes the part OLAF will have during the upcoming implementation phase of the Facility. Ultimately, it is argued that the combined efforts of all actors will be needed to ensure that the funds help accomplish the objectives of the initiative and reach the intended recipients.

Europejski Urząd ds. Zwalczania Nadużyć Finansowych jako instrument polityki bezpieczeństwa wewnętrznego UE

The article addresses one of the major problems in the field of EU internal security, which is the fight against corruption. It is treated as a dangerous social phenomenon, and, therefore, its reduction and eradication is one of the important elements in creating the Union's internal security policy. The main purpose of the article is to show the importance and the potential of the European Anti-Fraud Office (OLAF) to fight corruption in the EU. Striving to achieve such a specific goal, the author tried to show that corruption is a significant and multifaceted threat not only to the internal security of nation-states, but also to the EU community. An important element of the discussion is to show the process of creating EU anti-corruption law and the institutionalization of anti-corruption measures, which crowned the establishment of OLAF.

O combate à corrupção em rede na União Europeia: Um estudo do Organismo Europeu de Luta Antifraude (OLAF)

Until the early 1990s, corruption was considered, for some researchers, a grease that “lubricates” bureaucracy and over-regulation, and is considered efficient in achieving greater speed in public administration. From the 1990s, however, research has predominantly analyzed the phenomenon in relation to social, economic and political damage, being a decisive factor for the progress or failure of nations. Thus, reforms were suggested to reduce the incidence of this complex problem, where it is understood as fundamental the union of several actors acting in an interorganizational network to combat the phenomenon. In this context, this case study was conducted whose main objective is to analyze aspects of the formatting, cooperation and coordination of actions to combat network corruption through the European Anti-Fraud Office (OLAF) in relation to European Union (EU) resources. The empirical evidences of the exploratory research of qualitative were based on the bibliographic and documentary research. Based on the information and content analyzed, it appears that OLAF is interacting with various actors from EU countries, carrying out anti-corruption actions in conjunction with Member States’ national anti-fraud

OLAF – 20 Years of Protecting the Financial Interests of the EU

In 2019, the European Anti-Fraud Office (OLAF) celebrated 20 years of existence. From today’s perspective, the Office could be qualified as one of the most recognisable Directorates-General of the European Commission. This is due to its unique powers, experience and the results achieved over the past twenty years. OLAF’s main mission is to investigate fraud against the EU budget, as well as serious misconduct within the European institutions, and to develop anti-fraud policy for the European Commission. For the time being, OLAF has concluded more than 5000 cases and recommended several billion euro be returned to the EU budget. In 2018 alone, OLAF opened 219 investigations after analysing incoming information in 1259 selections. It concluded 167 investigations, which led to OLAF issuing 256 recommendations to competent authorities at EU and national level. This article focuses on the processes that led to the establishment of OLAF, the results that the Office has achieved so far and the new challenges the Office will face in the near future, such as cooperation with the European Public Prosecutor’s Office and new priorities for its investigative activities.

The decision to drop the case in the new EPPO’s regulation: Res Iudicata or transfer of competence?

This article discusses one of the most important decisions the European Public Prosecutor’s Office (EPPO) can take: the decision to drop a case. When this happens, the case will either be referred to national prosecutors or to the European Anti-Fraud Office (OLAF) or dismissed entirely. Why is this an important decision? Because it means the EPPO declines to prosecute, prosecution being (along with investigation) its very raison d’être. This is why it is important to understand how and when the EPPO may drop a case. In this respect, the EPPO Regulation (adopted on 12 October 2017) pursues two goals: first, it seeks to leave the EPPO a certain margin of discretion when deciding whether to drop a case; secondly, however, it seeks to limit that discretion in order to reduce the risk of decisions that are arbitrary or based on irrelevant considerations. This article argues that this strikes an acceptable balance between two different legal traditions: the ones inspired by the strict legality principle, such as Italy and Germany, and those inspired by the principle of opportunity, such as France or England and Wales. The article further explores how this balance is consistent with the emerging principles of international criminal law, where international tribunals try the most serious crimes only.

The future cooperation between OLAF and the European Public Prosecutor’s Office

Establishing the European Public Prosecutor’s Office (EPPO) will represent an important step for cross-border cooperation in criminal matters within the European Union, and more particularly for the protection of the Union’s financial interests. The EPPO’s work will complement the work carried out by the European Anti-Fraud Office. This article, based on a briefing paper commissioned by the European Parliament’s Policy Department for Budgetary Affairs, at the request of the Committee on Budgetary Control, analyses future cooperation between these two bodies, OLAF and the EPPO. Three main dimensions of their cooperation are analysed as well as the elements of complexity that may influence it. The article highlights elements essential for their close cooperation and complementarity, especially with regard to a potential revision of OLAF’s legal framework.