COM(2000)358 - Protection of the EC' financial interests - The fight against fraud - For an overall strategic approach

official title

 

Legal instrument	Communication
reference by COM-number76	COM(2000)358
Additional COM-numbers	COM(2000)358
CELEX number79	52000DC0358

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• 1. 

  Conclusions of the Helsinki European Council of 10 and 11 December 1999; Point 24.
  
   
• 2. 

  White Paper on Reforming the Commission. COM (2000) 200 final of 5 April 2000.
  
   
• 3. 

  These actions proper to the reform, outlined in detail in the White Paper, have been the subject of a specific action plan. They are not raised as such in this communication which intends, for its part, to complete the activity of all the services which work together to protect financial interests.
  
   
• 4. 

  Articles 274 to 280 of the EC Treaty.
  
   
• 5. 

  Under Article 280 the European Court of Auditors also participates in the legislative process by giving its opinion.
  
   
• 6. 

  The significant results obtained were presented in the Commission's annual reports and the summary report drawn up in 1996. Most recently: COM (1999) 590 final, 17.12.99; COM (97) 200 final, 6.5.97.
  
   
• 7. 

  Council Regulation (Euratom, EC) No 2988/95 relating to the protection of the financial interests (OJ L 312, 23.12.95);. Council Regulation (Euratom, EC) No 2185/96 relating to on-the-spot checks and inspections carried out by the Commission (OJ L 292, 15.11.96); sectoral regulations on reporting and control obligations.
  
   
• 8. 

  Article 286 of the EC Treaty and EC Directive 95/46 (OJ L 281, 23.1.95).
  
   
• 9. 

  Convention of 26.7.95, 1st protocol of 27.9.96, second protocol of 19.6.97, protocol on interpretation by the CJEC of 29.11.96 and Convention on corruption of 25.5.97.
  
   
• 10. 

  Economic and Financial Affairs Council of 25 May and Cologne European Council of June 1999.
  
   
• 11. 

  Commission service, operationally independent, monitored by a Supervisory Committee (See Commission decision of 28 April 1999; EC Euratom Regulations Nos 1073/1999 and 1074/1999, OJ L 136, 31 May 1999).
  
   
• 12. 

  Community initiatives (1st pillar) to be amplified via a cross-pillar approach by actions undertaken under the EU Treaty (3rd pillar).
  
   
• 13. 

  The summary report on the application of the former article 209a of the EC Treaty, the annual reports and the work undertaken by the Commission in the field of criminal-law protection of financial interests, the conclusions of the Committee of Independent Experts, the Dehaene, von Weiszäcker and Simon report on the institutional implications of enlargement and the work of the institutions, in particular Parliament, the Council and the Court of Auditors, constitute the bases for the reflections undertaken to define this new approach.
  
   
• 14. 

  EC Regulations Nos 1469/95 and 745/96, OJ L 145, 29.6.95, and L 102, 25.4.96, which provide for different measures to be taken against certain beneficiaries of operations financed by the EAGGF Guarantee Fund. Commission report on the state of application of these regulations planned.
  
   
• 15. 

  The charter with the professional associations to combat organised crime of 27 July 1999
  
   
• 16. 

  See in particular Regulations Nos 1150/2000 (OJ L 130, 31.5.2000), 515/97 (OJ L 82, 22.3.97), 595/91 (OJ L 67, 14.3.91), 1681/94 and 1381/94 (OJ L 178, 12.7.94, and L 191, 27.7.94).
  
   
• 17. 

  The proceeds of fraud are recycled through laundering networks, a sine qua non for crime which it cannot organise itself on a large scale without it. Dismantling a network without destroying its financial resources is pointless. The fight against laundering must therefore be a full component of the fight against fraud. Whereas the regulations impose obligations as to the exchange of information between the Commission and the Member States on fraud, there is currently no provision with regard to operations of laundering of the proceeds of Community fraud. The Commission, in its proposal for amendment of the money-laundering Directive, incorporated a provision allowing the Commission to be involved in the information system. The links between laundering and the principal offences to which it is attached will facilitate the identification of networks and will make it easier to trace the principals and thus seize and confiscate assets. The Commission will examine the possibility of amplifying the system.
  
   
• 18. 

  Public procurement is vulnerable to fraud and corruption. The proposed consolidated directive on public procurement adopted by the Commission in May 2000 provides that a tenderer who has been finally convicted of certain types of offence may be excluded from such contracts. Moreover, a development of information exchanges would also make it possible to have provisions to eliminate candidates or operators posing a threat to the proper running of the tendering process from access to Community subsidies. This identification would therefore allow the tendering authorities to eliminate these candidates in compliance with the right of appeal and the data-protection rules.
  
   
• 19. 

  With regard to disciplinary sanctions, see the third challenge under 3.3.
  
   
• 20. 

  Clearance of accounts of EAGGF Guarantee Section expenditure, area of own resources. Preparation under way of detailed implementing rules in the area of the Structural Funds in line with Regulation No 1260/99 (OJ L 161, 26.6.94).
  
   
• 21. 

  The Commission will evaluate with the customs authorities of the Member States any possibility of extending customs cooperation on the basis of Article 135 of the EC Treaty.
  
   
• 22. 

  See work under way for protection of the euro and the action to combat piracy and counterfeiting (EC Regulations Nos 3295/94 and 1367/95) in OJ L 341, 30.12.94, and L 133, 17.6.95).See Green Paper on the fight against counterfeiting and piracy in the internal market (COM(98) 569 final).
  
   
• 23. 

  Such arrangements are already in place in the agricultural sector (SAPARD programme).
  
   
• 24. 

  From the Commission departments, other institutions, organs or agencies (ECB, Court of Auditors, etc.) national authorities or other bodies such as Europol, Interpol, the WCO, the WTO, the World Bank, the IMF, the OECD. This activity will be backed up by the work done under the customs 2002 programme on risk analysis applied to customs controls as well as, in the area of the common agricultural policy, by the controls in the framework of the integrated administration and control system (IACS) and the Geographical Information System (GIS).
  
   
• 25. 

  A central and multidisciplinary structure (customs, police, justice) under the auspices of the Prime Minister of Poland is being set up for the protection of Community interests. It will enjoy support during the launch period (at least 2 years) from a team of experts from the Member States designated by the European Anti-fraud Office. This structure was co-financed under the Phare programme.
  
   
• 26. 

  Of course, activity in this area is linked to preventive actions and legislative initiatives referred to in the framework of the first challenge and involving all the Commission departments.
  
   
• 27. 

  In particular, Article 4(6)a of (EC, Euratom) Regulations Nos 1073/1999 and 1074/1999.
  
   
• 28. 

  At this stage, certain differences in the implementation of the interinstitutional agreement of 25 May 1999 by the different institutions, bodies or agencies have been noted.
  
   
• 29. 

  COM (2000) 200 final of 5 April 2000.
  
   
• 30. 

  See in particular (EC Euratom) Regulations Nos 2988/95 and 2185/96, Convention on the criminal-law protection of financial interests and its protocols.
  
   
• 31. 

  See in particular Articles 7 et seq. of the second protocol, expressly providing for the Commission's (Office's) technical and operational support with prosecution authorities and the exchange of information between the latter and the Commission (Office); see explanatory report of the second protocol: OJ C 91, 31 March 1999.
  
   
• 32. 

  Beyond the aspects concerned with detection of irregularities or cooperation, the legislator has provided for Community investigation reports to have evidential status in criminal proceedings under the same terms as national investigation reports.
  
   
• 33. 

  By the Commission Decision of 28 April 1999 establishing the European Anti-fraud Office (OJ L 136, 31.5.1999), this includes the protection of the Community's interests where they are threatened by unlawful conduct likely to lead to administrative or criminal proceedings.
  
   
• 34. 

  External actions or commercial policy.
  
   
• 35. 

  It acts or reacts, in theory, to information from various sources, in particular the national authorities concerned.
  
   
• 36. 

  On the basis of Article 280 of the EC Treaty, the new regulations and the Convention on criminal-law protection of financial interests, in particular the second protocol to it
  
   
• 37. 

  Joint action of 29 June 1998, OJ L 191, 7.7.1998.
  
   
• 38. 

  Cf. also the resolutions of the European Parliament on protection of financial interests and on the European Anti-fraud Office, the report of the Committee of Independent Experts, the opinions of the Supervisory Committee of the Office and the Dehaene, Von Weizsäcker and Simon Report on the institutional implications of enlargement.
  
   
• 39. 

  White Paper on Reforming the Commission. COM (2000) 200 final of 5 April 2000.
  
   
• 40. 

  These actions proper to the reform, outlined in detail in the White Paper, have been the subject of a specific action plan. They are not raised as such in this communication which intends, for its part, to complete the activity of all the services which work together to protect financial interests.
  
   
• 41. 

  Articles 274 to 280 of the EC Treaty.
  
   
• 42. 

  Under Article 280 the European Court of Auditors also participates in the legislative process by giving its opinion.
  
   
• 43. 

  The significant results obtained were presented in the Commission's annual reports and the summary report drawn up in 1996. Most recently: COM (1999) 590 final, 17.12.99; COM (97) 200 final, 6.5.97.
  
   
• 44. 

  Council Regulation (Euratom, EC) No 2988/95 relating to the protection of the financial interests (OJ L 312, 23.12.95);. Council Regulation (Euratom, EC) No 2185/96 relating to on-the-spot checks and inspections carried out by the Commission (OJ L 292, 15.11.96); sectoral regulations on reporting and control obligations.
  
   
• 45. 

  Article 286 of the EC Treaty and EC Directive 95/46 (OJ L 281, 23.1.95).
  
   
• 46. 

  Convention of 26.7.95, 1st protocol of 27.9.96, second protocol of 19.6.97, protocol on interpretation by the CJEC of 29.11.96 and Convention on corruption of 25.5.97.
  
   
• 47. 

  Economic and Financial Affairs Council of 25 May and Cologne European Council of June 1999.
  
   
• 48. 

  Commission service, operationally independent, monitored by a Supervisory Committee (See Commission decision of 28 April 1999; EC Euratom Regulations Nos 1073/1999 and 1074/1999, OJ L 136, 31 May 1999).
  
   
• 49. 

  Community initiatives (1st pillar) to be amplified via a cross-pillar approach by actions undertaken under the EU Treaty (3rd pillar).
  
   
• 50. 

  The summary report on the application of the former article 209a of the EC Treaty, the annual reports and the work undertaken by the Commission in the field of criminal-law protection of financial interests, the conclusions of the Committee of Independent Experts, the Dehaene, von Weiszäcker and Simon report on the institutional implications of enlargement and the work of the institutions, in particular Parliament, the Council and the Court of Auditors, constitute the bases for the reflections undertaken to define this new approach.
  
   
• 51. 

  EC Regulations Nos 1469/95 and 745/96, OJ L 145, 29.6.95, and L 102, 25.4.96, which provide for different measures to be taken against certain beneficiaries of operations financed by the EAGGF Guarantee Fund. Commission report on the state of application of these regulations planned.
  
   
• 52. 

  The charter with the professional associations to combat organised crime of 27 July 1999
  
   
• 53. 

  See in particular Regulations Nos 1150/2000 (OJ L 130, 31.5.2000), 515/97 (OJ L 82, 22.3.97), 595/91 (OJ L 67, 14.3.91), 1681/94 and 1381/94 (OJ L 178, 12.7.94, and L 191, 27.7.94).
  
   
• 54. 

  The proceeds of fraud are recycled through laundering networks, a sine qua non for crime which it cannot organise itself on a large scale without it. Dismantling a network without destroying its financial resources is pointless. The fight against laundering must therefore be a full component of the fight against fraud. Whereas the regulations impose obligations as to the exchange of information between the Commission and the Member States on fraud, there is currently no provision with regard to operations of laundering of the proceeds of Community fraud. The Commission, in its proposal for amendment of the money-laundering Directive, incorporated a provision allowing the Commission to be involved in the information system. The links between laundering and the principal offences to which it is attached will facilitate the identification of networks and will make it easier to trace the principals and thus seize and confiscate assets. The Commission will examine the possibility of amplifying the system.
  
   
• 55. 

  Public procurement is vulnerable to fraud and corruption. The proposed consolidated directive on public procurement adopted by the Commission in May 2000 provides that a tenderer who has been finally convicted of certain types of offence may be excluded from such contracts. Moreover, a development of information exchanges would also make it possible to have provisions to eliminate candidates or operators posing a threat to the proper running of the tendering process from access to Community subsidies. This identification would therefore allow the tendering authorities to eliminate these candidates in compliance with the right of appeal and the data-protection rules.
  
   
• 56. 

  With regard to disciplinary sanctions, see the third challenge under 3.3.
  
   
• 57. 

  Clearance of accounts of EAGGF Guarantee Section expenditure, area of own resources. Preparation under way of detailed implementing rules in the area of the Structural Funds in line with Regulation No 1260/99 (OJ L 161, 26.6.94).
  
   
• 58. 

  The Commission will evaluate with the customs authorities of the Member States any possibility of extending customs cooperation on the basis of Article 135 of the EC Treaty.
  
   
• 59. 

  See work under way for protection of the euro and the action to combat piracy and counterfeiting (EC Regulations Nos 3295/94 and 1367/95) in OJ L 341, 30.12.94, and L 133, 17.6.95).See Green Paper on the fight against counterfeiting and piracy in the internal market (COM(98) 569 final).
  
   
• 60. 

  Such arrangements are already in place in the agricultural sector (SAPARD programme).
  
   
• 61. 

  From the Commission departments, other institutions, organs or agencies (ECB, Court of Auditors, etc.) national authorities or other bodies such as Europol, Interpol, the WCO, the WTO, the World Bank, the IMF, the OECD. This activity will be backed up by the work done under the customs 2002 programme on risk analysis applied to customs controls as well as, in the area of the common agricultural policy, by the controls in the framework of the integrated administration and control system (IACS) and the Geographical Information System (GIS).
  
   
• 62. 

  A central and multidisciplinary structure (customs, police, justice) under the auspices of the Prime Minister of Poland is being set up for the protection of Community interests. It will enjoy support during the launch period (at least 2 years) from a team of experts from the Member States designated by the European Anti-fraud Office. This structure was co-financed under the Phare programme.
  
   
• 63. 

  Of course, activity in this area is linked to preventive actions and legislative initiatives referred to in the framework of the first challenge and involving all the Commission departments.
  
   
• 64. 

  In particular, Article 4(6)a of (EC, Euratom) Regulations Nos 1073/1999 and 1074/1999.
  
   
• 65. 

  At this stage, certain differences in the implementation of the interinstitutional agreement of 25 May 1999 by the different institutions, bodies or agencies have been noted.
  
   
• 66. 

  COM (2000) 200 final of 5 April 2000.
  
   
• 67. 

  See in particular (EC Euratom) Regulations Nos 2988/95 and 2185/96, Convention on the criminal-law protection of financial interests and its protocols.
  
   
• 68. 

  See in particular Articles 7 et seq. of the second protocol, expressly providing for the Commission's (Office's) technical and operational support with prosecution authorities and the exchange of information between the latter and the Commission (Office); see explanatory report of the second protocol: OJ C 91, 31 March 1999.
  
   
• 69. 

  Beyond the aspects concerned with detection of irregularities or cooperation, the legislator has provided for Community investigation reports to have evidential status in criminal proceedings under the same terms as national investigation reports.
  
   
• 70. 

  By the Commission Decision of 28 April 1999 establishing the European Anti-fraud Office (OJ L 136, 31.5.1999), this includes the protection of the Community's interests where they are threatened by unlawful conduct likely to lead to administrative or criminal proceedings.
  
   
• 71. 

  External actions or commercial policy.
  
   
• 72. 

  It acts or reacts, in theory, to information from various sources, in particular the national authorities concerned.
  
   
• 73. 

  On the basis of Article 280 of the EC Treaty, the new regulations and the Convention on criminal-law protection of financial interests, in particular the second protocol to it
  
   
• 74. 

  Joint action of 29 June 1998, OJ L 191, 7.7.1998.
  
   
• 75. 

  Cf. also the resolutions of the European Parliament on protection of financial interests and on the European Anti-fraud Office, the report of the Committee of Independent Experts, the opinions of the Supervisory Committee of the Office and the Dehaene, Von Weizsäcker and Simon Report on the institutional implications of enlargement.
  
   
• 76. 

  De Europese Commissie kent nummers toe aan officiële documenten van de Europese Unie. De Commissie maakt onderscheid in een aantal typen documenten door middel van het toekennen van verschillende nummerseries. Het onderscheid is gebaseerd op het soort document en/of de instelling van de Unie van wie het document afkomstig is.
   
• 77. 

  De Raad van de Europese Unie kent aan wetgevingsdossiers een uniek toe. Dit nummer bestaat uit een vijfcijferig volgnummer gevolgd door een schuine streep met de laatste twee cijfers van het jaartal, bijvoorbeeld 12345/00 - een document met nummer 12345 uit het jaar 2000.
   
• 78. 

  Het interinstitutionele nummer is een nummerreeks die binnen de Europese Unie toegekend wordt aan voorstellen voor regelgeving van de Europese Commissie.
  Binnen de Europese Unie worden nog een aantal andere nummerseries gebruikt. Iedere instelling heeft één of meerdere sets documenten met ieder een eigen nummering. Die reeksen komen niet overeen met elkaar of het interinstitutioneel nummer.
   
• 79. 

  Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
   
• 80. 

  Als dag van bekendmaking van een Europees besluit geldt de dag waarop het besluit in het Publicatieblad wordt bekendgemaakt, en daardoor in alle officiële talen van de Europese Unie bij het Publicatiebureau beschikbaar is.