[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 2.6.2005

SEC(2005) 724

COMMISSION STAFF WORKING PAPER

Annex to the : Communication from the Commission "Developing a strategic concept on tackling organised crime" {COM(2005)232 final}

TABLE OF CONTENT

1. List of measures proposed to implement the objectives set out in section 2 of the Communication

2. List of reference documents and summary of their key recommendations and conclusions

3. Measures and steps taken with regard to the implementation of the conclusions of the mid-term evaluation of the European Union Strategy for the Beginning of the New Millennium on Prevention and Control of Organised Crime

List of measures proposed to implement the objectives set out in section 2 of the Communication

N.B.: The priority rating is given according to the following parameters:

- Measures which have already been proposed at the time of writing and are thus assigned top priority;

- Measures which require further study and research;

- Measures which are dependent on future decisions regarding the allocation of resources in the context of the financial perspectives 2007-2013

No | Description of the action | Responsibility for implementation | Target date | Priority |

2.1. Improve the knowledge on OC and strengthen the gathering and analysis of information |

1 | The Commission will present a Communication on an action plan – EU crime statistics which will develop a system of statistics on crime, victimisation and criminal justice including statistics from Member States and regions within them that are harmonised at EU level. It will be the starting point for instruments to collect, process, store, analyse and disseminate statistics EU-wide. The implementation of the action plan will be given the necessary priority in the statistical programme of the Commission. It will be based upon the active participation of members of the European Statistical System, as requested by the Council Working Party on statistics, and will involve regular consultation of the Directors of Social Statistics of the Member States (DSS committee). | Commission Member States Europol | 2005 | 1 |

2 | On the basis of analysis of the EU comparable statistics that are produced, and including qualitative information such as the OC Report, an EU annual or biennial crime report will be produced by the Commission, complementing the OC Threat Assessment (OCTA) by Europol with a view to supporting the evolving European criminal intelligence system. | Commission Member States Europol | 2007 | 1 |

3 | The Commission will present recommendations for a standard methodology for vulnerability studies and proposes to fund such vulnerability studies under the Security and Safeguarding Liberties Programme (financial perspectives 2007-2013) with a view to supporting the evolving European criminal intelligence model. | Commission | 2007 | 1 |

4 | The Commission will present a policy document on EU intelligence led - law enforcement with a view to supporting the setting up of a European criminal intelligence model. It will i) support development of a common understanding of the type of intelligence needed at national and/or European level (including data standards) based on consultation with relevant partners and ii) determine a common approach on identification of responsibilities for contributing to the processing of the necessary data (i.e. at EU and national levels and at tactical and operational level). [cf. Recommendation 12 of the Millennium Strategy] | Commission Europol Member States | 2005 | 1 |

5 | Complementing measure 4, the Commission will support Europol in setting up the methodology for the future Organised Crime Threat Assessment (OCTA) at EU level. | Europol, Commission, Member States | 2005 | 1 |

2.2. Strengthen the prevention of OC |

Public sector |

6 | Use existing or build up networks to raise awareness and research on administrative approaches against OC across the EU (cf. doc. 12557/04 and doc. 14125/2/04) | Member States, Council | 2005-2007 | 1 |

7 | The Commission will further develop and implement a model for the crime proofing of legislation at EU level. [cf. Recommendation 6 of the Millennium Strategy] | Commission | 2005 | 1 |

8 | In the framework of the work on improving exchange of information regarding criminal records, as provided for in The Hague Programme, consideration should be given to the need to allow information exchange on unreliable bidders i.e. that have been previously convicted of OC related offences or corruption and excluded from public tenders. This would facilitate the respect of the obligations set out in Article 45(1) of Directive 2004/18/EC which provides in certain circumstances for the exclusion from participation in a public contract of any candidate or tenderer who has been the subject of a conviction by final judgment for participation in a criminal organisation, corruption, fraud to the detriment of the financial interests of the Communities or money laundering (OJ L 134, 30.4.2004.) [cf. Recommendation 2 of the Millennium Strategy] | Commission | 2008 | 1 |

9 | In the framework of the European Public Administration Network and the Human Resources Working Group consideration should be given to developing codes of conduct on ethics and integrity for public officials at EU and national levels. | Council, Member States, Commission | 2007 | 1 |

10 | Consideration should be given to a legal instrument introducing certain obligations on officials to report on bribery or other corruption related cases that they witness, providing for adequate administrative or penal sanctions, as well as disclosure of assets and/or business interests. [cf. Recommendation 7 of the Millennium Strategy] | Commission Council | 2009 | 3 |

Private sector |

11 | The Commission will further develop a model for the crime proofing of products and services. | Commission | 2005 | 1 |

Public private sector |

12 | The Commission will present a Communication: Action Plan on Public Private Partnerships. | Commission | 2006 | 1 |

13 | As already indicated in the Cyber crime Communication of 2001[1], the Commission will actively support the establishment of the Cybercrime Intelligence Network (CIN) as one of the initiatives which implement the concept of public private partnerships through AGIS and other forms of funding, as well as through awareness raising programmes and communications. The Commission will propose appropriate funding in the context of the financial perspectives 2007-2013. Europol should be fully associated with these initiatives. | Commission, Europol | 2006 | 2 |

14 | The Commission will submit a Communication on combating trafficking in human beings. It will take into due consideration the report of the experts’ group on trafficking in human beings (published in December 2004) and address preventive, law enforcement and international cooperation aspects linked to combating trafficking in human beings. | Commission | 2005 | 1 |

15 | The Commission will present a Communication addressing issues such as identity theft, improving the protection of critical information infrastructure and combating on-line child pornography as part of a review and updating of its cyber crime policy | Commission | 2006 | 1 |

Non-profit sector |

16 | On the basis of a study launched in 2004, the Commission will examine whether there is a need for the EU to introduce standards on the financing of social partner entities and other interest groups. | Commission | 2007 | 2 |

17 | To help guard against the risk of criminal infiltration of charitable and other non-profit organisations, the Commission is considering means of enhancing the level of transparency within the sector. Possible measures in this context would include integration of appropriate transparency and accountability measures in a European Statute of Associations and Foundations. The Commission will organise roundtable meetings in 2005 and 2006 to contribute to this project. | Commission Member States | 2005/6 | 1 |

2.3.1. Strengthen investigation of OC |

18 | The Commission has launched an in-depth analysis to identify obstacles in cross-jurisdictional use of special techniques for the investigation of serious and OC. Based on this analysis, minimum standards for the use of special investigative techniques will be proposed. [cf. Recommendations 11 and 30 of the Millennium Strategy] | Commission | 2006 | 2 |

19 | The elaboration of a best practice guide for the promotion and expansion of the use of the special forms of cooperation (hot pursuit, cross-border surveillance, controlled delivery, covert investigations, joint special investigation teams) referred to in the Convention on mutual assistance and cooperation between customs administrations (“Naples II”). [cf. Recommendations 11 and 30 of the Millennium Strategy] | Commission Member States | 2008 | 2 |

20 | All EU Member States should fully implement the FD on joint investigation teams of 13.6.2002 and train law enforcement authorities and judicial authorities with the purpose of raising awareness on Joint Investigation Teams (JITs). Europol and Eurojust should be involved when setting up JITs. As experience is gained with the setting up of JITs, consideration should be given to the elaboration of a best practices guide for joint investigation teams. Furthermore, consideration should be given to the provision of financial support from the Community budget to operational facilities for JITs in the context of the financial perspectives 2007-2013. [cf. Recommendations 11 and 30 of the Millennium Strategy] | Member States, Europol, Eurojust, Commission, Council | 2005/2006 | 1 |

21 | The Commission will launch a comparative study on the cross border use of intelligence as evidence. This is an important aspect for the enhanced sharing of information and intelligence as envisaged by The Hague Programme. The study should look inter- alia into questions related to disclosure of intelligence to prosecution authorities, and disclosure of intelligence by prosecution authorities to the defence. | Commission | 2008 | 3 |

22 | In order to ensure the effective implementation of legal instruments for quickly safeguarding and exchanging (electronic) evidence, such as the European Evidence Warrant, the Commission will consider proposals for minimum standards for capturing and exchanging electronic evidence. | Commission | 2006 | 2 |

23 | In both the Enron and Parmalat scandals, the obstruction of justice by the wilful destruction of documentary evidence seems to have been a serious obstacle for financial investigators. To address differences in the way this type of conduct is addressed and avoid safe havens, establishment of an EU-wide minimum penalty, may be necessary. To this effect, the Commission will consider developing an appropriate instrument in the medium term. | Commission | 2007 | 2 |

24 | The Commission will present a proposal for a directive on the retention of data processed in connection with the provision of public electronic communication services for the detection, investigation and prosecution of criminal offences. It will at the same time set up an expert group to advise on data retention needs for law enforcement purposes and identify together with industry the types of necessary data to be retained. | Commission | 2005/2006 | 1 |

25 | The Commission will analyse further the scope for an instrument on the protection of witnesses and collaborators of justice at EU level which simultaneously satisfies the request by the European Council for a witness protection programme and make a proposal to that effect. [cf. Recommendation 125of the Millennium Strategy; Declaration on Terrorism of 25.3.2004] | Commission | 2007 | 1 |

26 | Member States are invited to consider the setting up of specialised investigation or prosecutorial bodies for dealing with the investigation of cases linked with OC. In these bodies, judges and prosecutors should be assisted by multidisciplinary teams, in particular with financial experts. Europol and Eurojust should be informed of the setting up of such bodies to which they should give assistance in order to improve mutual cooperation. The Commission intends to undertake an evaluation of the efficiency of specialised judicial bodies for dealing with the investigation of cases linked with OC | Member States, Eurojust, Europol, Commission | 2009 | 1 |

2.3.2. Strengthen tools to address financial aspects of OC |

27 | In order to promote financial investigation and common minimum standards in financial investigative training the Commission has established a Steering Group on Financial Investigative Training Standards[2]. This Group is evaluating training needs in the EU 25. The ultimate aim of the Group is to establish a common set of training standards in financial investigation skills as a law enforcement technique throughout the EU. The Commission will propose appropriate funding in the context of the financial perspectives 2007-2013. | Commission, Europol, Member States | 2005 | 2 |

28 | Cooperation in the tracing and identification of criminal assets should be enhanced through establishment of Criminal Asset Intelligence Units in all Member States. These should be made up of national experts in the police and judicial aspects of criminal asset identification and confiscation. They should be points of contact for requests from other Member States and third countries regarding the investigation of criminal assets and transactions. The AGIS funded “CARIN”[3] project which aims to establish an informal network of contacts and a cooperative group in criminal asset identification and recovery, should be promoted and all Member States encouraged to participate actively. [cf. Recommendation 17 of the Millennium Strategy] | Member States | 2007 | 1 |

29 | The Commission will explore standards for the return of confiscated or forfeited assets as compensation or restitution to identifiable victims of crime or charitable organisations. | Commission | 2008 | 2 |

30 | All Member States should become fully functioning members of the FIU NET by end 2005. The FIU-Net – the pilot information exchange network of financial intelligence units (FIUs) - should be enhanced so that the system is dynamic, multilateral and automated. The Commission will propose necessary funding in the context of the financial perspectives 2007-2013. | Member States Commission | 2005 / 2006 | 2 |

31 | Appropriate case tracking systems should be put in place to monitor follow-up where a FIU transmits a suspicious transaction report (STR) to police. Harmonised mechanisms for collection of statistics on money laundering should be developed to allow assessment of the overall effectiveness of anti-money laundering measures and to facilitate comparisons. The Commission will present a recommendation for a Memorandum of Understanding regarding feedback from FIUs to reporting bodies on STR. | Commission, Member States | 2006 | 2 |

32 | The need for an EU level database of suspicious transactions as well as suspicious cash transactions will have to be closely examined in the light of the evolving European criminal intelligence model. | Commission, Member States, Europol | 2006 | 1 |

33 | As demonstrated by the Enron and Parmalat scandals complex and opaque financial structures can be used to criminal advantage. A scoping study in connection with a cost benefit analysis of transparency measures has now been completed. Based on the findings of this study, the Commission intends to launch an extensive cost benefit analysis of transparency measures in the first semester of 2005. This will inform the Commission’s analysis as to the need for a recommendation and/or new legal instruments in the area of transparency of legal entities. | Commission | 2006 | 2 |

2.3.3. Strengthen the access to and exchange of information and intelligence between law enforcement authorities |

34 | The Commission will submit a proposal for a Framework Decision on the establishment of the principle of equivalent access to law enforcement relevant information (cf. action plan implementing The Hague Programme). | Commission | 2005 | 1 |

35 | The Commission will submit a proposal for a Framework Decision on adequate safeguards for the transfer of personal data for the purpose of police and judicial co-operation in criminal matters (cf. action plan implementing The Hague Programme) | Commission | 2005 | 1 |

36 | The Commission will submit a proposal for a Council Decision on mutual consultation of DNA databases (cf. action plan implementing The Hague Programme) | Commission | 2005 | 2 |

37 | The Commission will submit a proposal for a Council Decision on mutual consultation of fingerprint databases (cf. action plan implementing The Hague Programme) | Commission | 2007 | 2 |

38 | The Commission will submit a proposal for a general Community architecture on forensic/police databases (cf. action plan implementing The Hague Programme) | Commission | 2008 | 3 |

39 | The Commission will propose setting up a network mechanism between anti-corruption authorities (including police, judicial, prosecutorial, customs) at EU and transnational level. | Commission, Member States, Council | 2008 | 3 |

2.3.4. Strengthen inter-institutional and cross-jurisdictional cooperation |

40 | Member States should set up short-duration joint customs/police operations and/or multidisciplinary teams. | Member States, Europol, Commission | ongoing | 1 |

41 | Consideration should be given to the provision of financial support from the Community budget to joint customs/police/prosecutorial operations in the context of the financial perspectives 2007-2013. | Commission, Council, European Parliament | 2007 | 3 |

42 | Consideration should be given to a recommendation that extends the Council Resolution of 1996 on the formalisation of co-operation between police and customs as regards the fight against drugs trafficking (96/C 375/01) to other criminal offences. | Council, Commission, Member States | 2006 | 3 |

43 | The Commission will submit a Communication on the fight against the illicit cross-border trafficking in restricted or prohibited goods | Commission | 2007 | 2 |

2.4. Improve use and strengthen existing bodies |

44 | Support awareness programmes of Europol and Eurojust through the AGIS programme | Commission | Ongoing | 2 |

45 | Promote the enlargement of Europol National Units to all national law enforcement authorities involved in the fight against OC including terrorism | Member States, Council, Commission | 2007 | 2 |

46 | When consideration is given to creating a new law enforcement network in the field of OC, this should include an analysis of the impact on the flow of information to Europol. | Council, Member States, Commission | Ongoing | 1 |

47 | Set up systematic exchange programmes for law enforcement officers | CEPOL, Commission | 2005-2010 | 1 |

48 | Definition of a policy on the relationship between Europol and Eurojust | Commission, Eurojust, Europol, Council | 2008 | 1 |

49 | The exchange of information between the national authorities and the national members of Eurojust should be improved by the establishment of a “Eurojust Secure Communication Network”. | Eurojust, Member States | Ongoing | 1 |

2.5. Improve legislation where needed |

50 | The Commission will study and research the scope for a legal instrument approximating the constituent elements and penalties e.g. for racketeering and extortion, and for illicit arms trafficking in the context of the implementation of the UN Firearms Protocol. | Commission | 2008 | 3 |

51 | On the basis of an in-depth analysis, the Commission will consider proposing EU legislation for the approximation of legislation in criminal matters, in particular regarding the constituent elements of and penalties in the field of tax fraud or on standards and best practices for the purpose of improving law enforcement cooperation in the fight against organised tax fraud. [cf. Recommendations 4 and 7 of the Millennium Strategy] | Commission | 2007 | 2 |

52 | The Commission will consider submitting a proposal for a FD on identity theft and identity management measures, including a database of identity documents issued in the EU and recommendations on EU minimum standards for verification of customer identity | Commission | 2007 | 2 |

53 | The Commission will review and strengthen present legislation on confiscation of criminal assets requiring or not criminal conviction | Commission | 2008 | 2 |

2.7. Strengthen co-operation with non-EU countries and international organisations |

Strengthen bi-lateral co-operation with non-EU countries |

54 | In accordance with the European Neighbourhood Policy Action Plans, support the ratification and implementation of relevant international instruments and enhance the capacity of third countries’ law enforcement authorities, particularly through MEDA, TACIS and, from 2007, the European Neighbourhood and Partnership Instrument (ENPI). Strengthen co-operation and information exchange on OC. [cf. GAERC Council Conclusions of 16/603 & 14/6/04 (on ENP), JHA External Relations Multi-Presidency Programme 3/1/05] | Commission | ongoing | 2 |

55 | Continue to develop co-operation with Russia to combat OC, particularly through: the implementation of the ‘Joint Action Plan on OC’ and its implementation tool - the EU-Russia liaison officers’ network; discussions within the PCA framework; and through the development of the future ‘common space of freedom, security and justice,’ which will become the main EU-Russia framework for JHA co-operation. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; Recommendation 36 of the Millennium Strategy] | Commission, Member States | ongoing | 1 |

56 | Support countries of the Western Balkans to develop their capacities to combat OC, particularly through: the comprehensive implementation of the specific action oriented measures; and continuing to include the fight against OC as a priority for CARDS assistance. [cf. Presidency Statement on EU-Western Balkans Forum JHA Ministerial Meeting 3/12/04] | Commission | ongoing | 1 |

57 | Support the Candidate Countries (Bulgaria, Croatia, Romania, Turkey) to align with EU legislation and implement EU standards to combat OC, particularly through PHARE support including Twinning and TAIEX seminars. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; Recommendations 31 and 35 of the Millennium Strategy] | Commission | ongoing | 2 |

58 | Within the framework of the New Transatlantic Agenda, tackle jointly with the United States the challenge of organised crime, particularly through: Informal JHA High Level Meetings; the ‘Policy Dialogue on Transport and Border Security’; and the entry into force of agreements on mutual legal assistance and extradition. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; Recommendation 36 of the Millennium Strategy] | Commission, Council | ongoing | 2 |

59 | Develop co-operation to combat organised crime with other countries, particularly countries of origin and transit (drugs trafficking, human trafficking, fire-arms trafficking, commodity smuggling, money laundering, counterfeit goods, environmental crime etc) in Asia (including Central Asia), Latin America and Africa, by fully integrating activities combating organised crime into EU external assistance and dialogues with third countries. [cf. ‘European Security Strategy: Effective Multilateralism’] | Commission | ongoing | 2 |

Strengthen cooperation through regional initiatives |

60 | Promote regional cooperation and the development of regional capacities to combat OC in the Western Balkans, through: regional CARDS Programmes, including implementation of the regional action oriented measures[4]; the implementation of the recommendations of the Friends of the Presidency Report[5]; supporting a reinforced role for the SECI Regional Centre; and promoting enhanced regional prosecutorial cooperation. [cf. Presidency Statement on EU-Western Balkans Forum JHA Ministerial Meeting 3/12/04] | Commission | 2007 | 2 |

61 | Provide regional support and promote regional co-operation to fight OC to the CIS countries, particularly through TACIS regional programmes, including the Border Management Programme Central Asia (BOMCA) and the Central Asia Drug Action Programme (CADAP). Further co-operation in the Baltic Sea Task Force on OC should also be encouraged. [cf. JHA External Relations Multi-Presidency Programme 3/1/05] | Commission | 2008 | 2 |

62 | Provide regional support and promote regional co-operation to fight OC in the Mediterranean Region, particularly through the MEDA regional cooperation programme, and as part of the dialogue within the Barcelona process. [cf. JHA External Relations Multi-Presidency Programme 3/1/05] | Commission | 2009 | 3 |

Strengthen co-operation with international organisations |

63 | Active co-operation with and involvement in the work of the key UN agencies involved in combating OC, particularly the UNODC on the basis of the exchange of letters. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; ‘European Security Strategy: Effective Multilateralism’; Recommendations 36 and 37 of the Millennium Strategy] | Commission | ongoing | 3 |

64 | Support the implementation of UNTOC and its three protocols and the UN Convention against Corruption. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; ‘European Security Strategy: Effective Multilateralism’; Recommendation 38 of the Millennium Strategy] | Commission, Member States | ongoing | 2 |

65 | Submit a proposal for a Council Decision on the signature and conclusion of international instruments on behalf of the European Community, in particular for the Council of Europe Convention against money laundering and terrorist financing; submit a proposal for a Council Decision respectively on the conclusion of the Firearms Protocol supplementing the UN Convention against transnational organised crime and the UN Convention against corruption on behalf of the European Community. | Commission | 2005-2007 | 1 |

66 | Active involvement in the work of the Council of Europe on combating OC, particularly in CODEXTER (Terrorism); CAHTEH (Human Trafficking), PC-RM (Money Laundering Convention) and MONEYVAL (Money Laundering Experts) committees. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; ‘European Security Strategy: Effective Multilateralism’; Recommendation 36 and 37 of the Millennium Strategy] | Commission, Member States | ongoing | 3 |

67 | Active involvement in the work of the G8 on combating OC, through improved coordination of Member States on topics dealt with, particularly within the work of the Roma/Lyon Group and CTAG. [cf. JHA External Relations Multi-Presidency Programme 3/1/05;] | Commission | ongoing | 2 |

68 | Active involvement in the work of FATF on combating money laundering, financing of terrorism and other forms of organised financial and economic crime. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; Recommendation 36 and 37 of the Millennium Strategy] | Commission | ongoing | 3 |

69 | Active involvement in the work of the OECD and OSCE on combating OC. [cf. JHA External Relations Multi-Presidency Programme 3/1/05; Recommendation 36 and 37 of the Millennium Strategy] | Commission | ongoing | 3 |

4. List of reference documents and summary of their key recommendations and conclusions

(in chronological order of their adoption)

Communication on a comprehensive EU policy against corruption (COM(2003) 317 final) |

A strong political commitment against all forms of corruption should come from the highest level of EU institutions; The implementation of existing anti-corruption instruments should be closely monitored and strengthened; EU Member States should develop and improve investigative tools and allocate more specialised staff to the fight against corruption; Member States and EU institutions and bodies should enhance efforts to combat corruption damaging the financial interests of the European Community; Common integrity standards in public administrations across the EU such as the Common Assessment Framework of EU Heads of Civil Service and Public Administration should be further developed at EU level; | Member States and the Commission should support the private sector in its efforts to raise integrity and corporate responsibility; The fight against political corruption and illicit financing of social partner entities and other interest groups needs to be strengthened at EU and Member States level; In their permanent dialogue with acceding, candidate and other third countries, the Member States and the Commission should systematically include corruption-related issues and further assist these countries in their efforts to set up and implement national anti-corruption policies on the basis of the 10 General Principles set out in the Communication The EU should continue making the fight against corruption an integral part of its external and trade policy |

Dublin Declaration (doc. 16302/03 CRIMORG 96) welcomed by the informal JAI Council on 22/23 January 2004 |

The Declaration calls for further EU action in the following fields: The preparation of an European Action Plan on partnerships between the private and public sectors to reduce the impact of OC; The setting up of common minimum standards in order to make European criminal intelligence systems mutually compatible; | The establishment of a EU law enforcement information policy; The development of a European Crime Statistics strategy; The establishment of a EU Crime Prevention Research Advisory Panel; EU Good Practice Guide on crime proofing |

Communication on measures to be taken to combat terrorism and other forms of serious crime, in particular to improve exchanges of information COM(2004)221 final |

Greater efforts must be made in the fight against terrorism and the most serious forms of crime. A qualitative and quantitative improvement in exchanges of information is needed. Elaborating a FD on the fight against OC to replace the Joint Action of 1998. Have national systems for registering bank accounts allowing holders to be identified and facilitating investigations into bank accounts and movements of funds. | Improving the transparency of bodies corporate is indispensable to counter infiltration of the legitimate sector by criminal groups and terrorist organisations. Measures must be prepared in close cooperation with representatives of the relevant sectors. Establishing of an effective mechanism for exchanging information on convictions and disqualifications as a means of preventing terrorist groups and criminal organisations from infiltrating legitimate activities |

Communication on the prevention of and fight against OC in the financial sector COM(2004)262 final |

Need for effective mechanisms to identify and confiscate criminal proceeds, including the establishment of national bodies dedicated to identification, tracing and confiscation of criminal proceeds. Need to promote financial investigation as a law enforcement technique throughout the EU including common minimum training standards. Member States should ensure that adequate law enforcement resource with appropriate skills and training are made available to tackle organised financial crime throughout the EU. Need to ensure adequate and systematic feedback from FIUs to reporting bodies. | Need to develop common set of money laundering statistical criteria and case tracking systems allowing all MS to produce comparable statistics on effectiveness of anti-money laundering systems. Need for enhanced co-operation between public and private entities to help ensure a more effective fight against this type of crime. Improved financial transparency is a requisite to strengthen the fight against organised financial crime. Further research on the cost benefit implications of transparency measures in the financial sector should be undertaken |

Communication on enhancing police and customs cooperation in the European Union COM(2004)376 final |

(1) Decision making: - Work should be based on multi-annual work programs developed by the Council and the Commission. - Only legally binding instruments should be adopted. - Implementation of legal instruments should be improved and monitored better. (2) Operational co-operation: - Allow Europol a period of consolidation during which all decisions regarding Europol should be ratified and implemented, - The Europol Convention should be replaced by a Council Decision pursuant article 34(2)(c). - Once consolidation is achieved, serious consideration should be given to attributing certain investigative powers to Europol. (3) Cross-border co-operation: - Joint Police Stations and Customs Co-operation Centers should be established in all the internal border regions. - Limitations to cross-border pursuit and surveillance due to the type of means of transportation should be removed. - New functionalities should be introduced as soon as possible in the Schengen Information System (SIS) and its successor, SIS II. (4) Training and research: - The European Police College (CEPOL) should have legal personality, a functioning Permanent secretariat, and be financed from the EU's budget. | - An EU Code of Police Ethics should be developed. (5) Counter-terrorism: - Improve co-operation among all actors involved in the fight against terrorism within the Council structures. - Europol should be transformed into a true center of intelligence in counter-terrorism. - The role of the Terrorism Working Group of the Council in policy making should be enhanced. (6) Customs co-operation: - Launched an evaluation study for a permanent Operational Control Unit (OCU) for joint customs operations. - The Naples II Convention of 1997 should be ratified by all Member States. A system for the evaluation of the application of the Naples II Convention by the Member States should be put in place. - Customs administrations in the EU should more actively share liaison officers. - Common EU threat assessments regarding prohibited and restricted goods should be developed. (7) Miscellaneous: - The interoperability of the different databases and communication systems of Member States' law-enforcement agencies should be ensured. - Joint surveillance operations organized within the framework of the Council working groups should include, where appropriate, representatives from all the relevant law-enforcement agencies. |

Communication on “Area of Freedom, Security and Justice: Assessment of the Tampere programme and future orientations” COM(2004)401 final |

to give the Union a coherent crime policy to fight effectively against serious crime in all its forms: The actions undertaken to define and fix the minimum thresholds for penalties for certain offences will have to be deepened. As regards approximation of legislation it will be necessary to go further in certain areas. to adopt the institutional mechanisms making it possible to monitor and ensure that Union instruments are properly implemented. To put Eurojust at the centre of European criminal policy. Eurojust should therefore be the natural means for national authorities to extend their activities in the cross-border cases. Subject to review by the Court of Justice, Eurojust should be able to guide the criminal response to offences that threaten the Union’s activities and policies. Thought must be given in particular to supplying information to and strengthening the role of Europol. To continue bilateral cooperation between Member States in the fight against OC and terrorism while not neglecting multilateral exchanges, including with intelligence services. To consider reviewing, revitalising and developing the role of the Police Chiefs’ Task Force in view of its privileged position in operational coordination. It seems indispensable: to establish a legal framework to improve information exchanges between the Member States’ enforcement services and to control their access to the various sources of information; to give thought to the legal framework of Europol, to make it truly operational and convert it into a Union agency, financed from the Community budget. There will have to be greater democratic and judicial control of its activities; to pay great attention to the training of police officers. CEPOL must guarantee the European dimension of the programmes at national training institutes and promote cooperation between them. Thought should be given to setting up “performance agreements” between the main authorities concerned. | To ratify and implement the Naples II Convention and the Convention on the Customs Information System (CIS) by all the Member States remain priorities. It is important to implement the work programme concerning the customs cooperation strategy based on Title VI of the Union Treaty, adopted by the JHA Council on 30.3.2004. To create a European framework to control the threat that serious crime and terrorism pose for society. In order to coordinate and exchange strategic and operational information efficiently, the Union should set up a new information exchange mechanism – an information exchange centre – as proposed by the Commission at the European Council of 25 and 26 March 2004, with which Europol and Eurojust should be fully associated. To promote exchanges between national criminal intelligence systems. To devise a policy on intelligence for preventive and enforcement purposes for the Union. This action must be accompanied by a legislative initiative on the treatment and protection of personal data used by police services. To implement the action called for by the European Council on 25/26.3.2004 and to develop a multidisciplinary approach, providing a coherent interface between the internal and external dimensions of the various Union policies. To pay attention to upgrading international cooperation with all actors involved, such as for example Interpol. To fully use the existing legal possibilities, such as joint investigation teams, and the work of Europol, in particular as regards information analysis. To handle the fight against terrorism in conjunction with other forms of crime, and in particular OC. A broad-based approach is necessary, in particular by combating any form of financing of terrorism. There is a particular need for greater transparency and traceability of financial transactions. To develop public-private partnerships in order to combine the expertise, resources and information available to the private sector and to police services in the fight against OC Improve statistical work and the collection of information on the development of crime and public perceptions of the level of security, through a harmonised information collection system which is structured and regular. Stronger action for crime prevention: undertake efforts to make goods and services less vulnerable to crime. The crime-proofing of legislation must be an integral part of this effort. |

Communication Towards enhancing access to information by law enforcement agencies COM(2004)429 final |

to improve access to and exchange of information between European law enforcement authorities by establish a right of equivalent access to all data and information that law enforcement authorities throughout the European Union need to prevent and combat serious and OC, including terrorism, and to protect the Union and its citizens against threats to public order and threats to security to produce and use high quality European criminal intelligence to underpin the introduction of intelligence led law enforcement at EU level | to enhance trust between enforcement services by establishing a joint platform of shared values, standards and policy orientations to enhance training measures for law enforcement officers in particular by CEPOL to prepare a legislative initiative regarding the transfer of personal data for the purpose of police and judicial cooperation in criminal matters to prepare a legislative initiative regarding the use of passenger information for law enforcement purposes |

Communication on preventing and combating corporate and financial malpractice COM(2004)611 final |

Consider further the need for an instrument on obstruction of justice to include such things as wilful destruction of documents to destroy financial paper trail; Consider further the need to reformat possibly on the basis of mutual recognition the Protocol to the Convention on Mutual Legal Assistance on the exchange of bank account and banking transaction information Development of an EU policy on administrative, civil and criminal corporate liability. This could include fines/other penalties for failure to comply with corporate governance, accountability and reporting standards. | Develop enhanced co-operation between private and public sector stakeholders with a common interest to combat/reduce organised crime (EU Action Plan on Public Private Partnerships). Traceability of on-line financial flows – Launch of Research Project re money laundering and other financial crime vulnerabilities of the Internet as payment infrastructure |

Communication on the prevention of and fight against terrorist financing COM(2004)700 final |

The need to enhance information exchange among relevant actors (both public to public and public to private) at national, EU and international levels. The Communication highlights the need to facilitate co-operation and exchange structures encompassing fiscal authorities, financial oversight bodies, the Justice Department, intelligence community, law enforcement authorities and authorities in charge of administrative freezing. As regards information exchange between public and private sectors, the idea is raised to give FIUs/law enforcement services access to financial institutions’ databases of account holders and their transactions with the aim of allowing real time data exchange, possibly on the basis of encrypted data allowing law enforcement access only when there is a “match” between a suspect and data on that person held by a financial institution. This could allow linking of subjects, identifying flows of money and tracking of sources. | The need to improve traceability of financial transactions highlights the case for Member States to ensure that law enforcement services have resource to develop financial investigative skills allowing them to follow money trails backwards to the person providing finance and forwards to terrorist cells. The Communication also refers to the Commission led project to establish common minimum standards in financial investigative training in the EU 25. The Communication highlights the importance of effective customer identification by banks etc. and makes the case for a common EU minimum approach in terms of identification processes used by financial institutions and financial institution access to databases of sample identity documentation. The need to promote transparency of legal entities focuses on the non-profit/charitable sector where the absence of transparency measures has made the sector vulnerable to abuse. The Communication outlines the case for an EU-wide implementation of Special Recommendation VIII on the non-profit sector and charities. |

The Hague Programme – strengthening freedom, security and justice in the European Union” doc. 14292/04, adopted by the European Council of 4/5 November 2005 |

Initiatives that flow directly from “The Hague programme” and have an impact on fight against OC: develop systematic evaluation of the implementation and the effects of all measures implement principle of availability for exchange of law enforcement information use of passenger data for law enforcement purposes, develop a strategy to combat terrorism financing, | develop systematic exchange programmes for police authorities, develop a training network for judicial authorities, develop an Action Plan on public private partnerships, enhance information exchange from national records of convictions and disqualifications to establish European instruments for collecting, analysing and comparing information on crime and victimisation |

Council conclusions regarding an administrative approach to combat OC (doc. 14125/2/04 CRIMORG 123 REV2) adopted by the informal JAI Council on 2.12.2004 |

Member States should appoint a contact person on the theme “administrative approach against OC” A dedicated website should be set up | Member States and the EU should conduct more research in order to promote the awareness and development of an administrative approach against crime |

Council conclusions on the development of a strategic concept with regard to tackling cross-border OC at EU-level (doc. 15050/04 CRIMORG 138; doc. 13463/2/04 REV2 CRIMORG 105) adopted by the informal JAI Council on 2.12.2004 |

There is a need to develop a strategic concept with regard to tackling cross-border OC The concept will primarily pay attention to how an optimum use can be made of existing possibilities and instruments, in particular possibilities for improving : the knowledge on and insight in the way that OC manifests itself, how it develops and the threats it poses; the policy making process that results in setting priorities for tackling specific forms of OC at EU-level; the process in which priorities set by the Council can be translated in actual and successful operational activities, whilst at the same time safeguarding the operational autonomy of Member States law enforcement authorities; the gathering, analysis and exchange of information and intelligence, both as a prerequisite for policy-making as for successful operational co-operation at EU-level; | the use of existing instruments and EU-bodies; co-operation with third countries and international organisations; the knowledge of the links between OC and corruption and corruption-related issues, the development of alternative approaches in tackling cross-border OC, both on a national level and with regard to the international aspects of these alternative approaches The strategic concept will be developed in close co-operation between the relevant Council Working Parties, the European Commission, Europol, Eurojust, the EUCPN, CEPOL and the Police Chiefs Task Force, each within their respective competencies |

Council conclusions on an improved use of Eurojust in the fight against serious crime (doc. 15285/04 EUROJUST 97; doc. 12561/4/04 REV4 EUROJUST 78) adopted by the informal JAI Council on 2.12.2004 |

calls upon all Member States to fully implement the Council Decision setting up Eurojust and provide information on progress made recommends that Member States examine whether national members should be provided with the judicial powers in accordance with Article 9(3) of the Eurojust Decision recommends that Eurojust be associated with the setting up and work of Joint Investigation Teams | recommends that maximum use is made of the Europol/Eurojust Agreement and that relations between national members of Eurojust and national desks at Europol and Europol National Units, as well as with Europol itself, are further intensified recommends the further improvement of the exchange of information between Europol and Eurojust considers that it is desirable that Eurojust give priority to concluding agreements with candidate countries and with those third countries that other relevant EU-organisations have concluded agreements with. |

Measures and steps taken with regard to the implementation of the conclusions of the mid-term evaluation of the European Union Strategy for the Beginning of the New Millennium on Prevention and Control of Organised Crime

BACKGROUND

Recommendation 39 of the European Union Strategy for the Beginning of the New Millennium on the Prevention and Control of Organised Crime[6] (hereafter the Strategy) requests the submission of a general report on the implementation of the Strategy no later than 30 June 2005. This working paper represents a contribution from the Commission services to the final report. It focuses on the steps and measures taken to implement the conclusions of the mid-term evaluation of the Strategy[7] of which the JAI Council took note on 2/3 October 2003. The present evaluation also feeds into the development of a strategic concept on organised crime.

Of the six specific conclusions highlighted in the mid-term evaluation of the Strategy, one related to drugs trafficking has been met: the Council adopted a Framework Decision laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of drug trafficking in October 2004. [8]

Follow-up work on the other five recommendations is work in progress, some of which well advanced. The Commission proposed legislation[9] and adopted a White Paper on the exchange of information on convictions[10]; a Communication on disqualifications will follow later in 2005. The proposal for a Third Money Laundering Directive[11] includes a provision to prevent the use of large-scale cash payments for money laundering purposes. Both initiatives are under discussion in the Council at the time of writing. The development of comparable crime statistics is a long term project on which the Commission is engaged together with other stakeholders. It intends to present a Communication on EU Crime Statistics still in 2005. A study has been launched with regard to fiscal fraud and its results are expected in July 2005. The Commission (OLAF) and Europol, within their respective legal frameworks will provide assistance to Member States in the format of a service platform for joint customs operations in 2005. Last as regards witness protection it has been touched upon in the proposal for a Council Framework Decision on the fight against organised crime[12]. The Commission is currently studying the question of a dedicated legal instrument on the protection of witnesses and collaborators of justice.The following chapter gives a detailed account on the follow-up to the six recommendations.

MEASURES TAKEN WITH REGARD TO THE IMPLEMENTATION OF THE CONCLUSIONS OF THE MID-TERM EVALUATION OF THE MILLENNIUM STRATEGY

Disqualifications

Conclusion of mid-term evaluation: the Multidisciplinary group on organised crime calls upon the Commission to issue a Communication on disqualifications and calls upon the Council to consider on how best to ensure that the competent authorities in the European Union are informed of disqualifications.

Description of action taken

Improving the exchange of information on convictions and disqualifications between the Member States has become a priority at the EU level as clearly stated in The Hague programme. The Commission undertook in July 2004 to present short-term and medium-term initiatives aimed at improving the exchange of information on convictions and disqualifications between the Member States.

On 13 October 2004, the Commission adopted a first legislative instrument[13] aimed at improving in the short term the working of existing mechanisms for exchanging information on criminal records, before setting-up a more complete computerised system for exchanging information.

Assessment

Improving the way information on convictions and disqualifications circulate between the Member States contributes to the objectives set out in Recommendation 2.

Recommendation for further action

In January 2005, the Commission adopted a White Paper on the exchange of information on convictions and the effect of such convictions in the European Union[14]. The proposals contained in this White Paper will be completed by a Communication on disqualification which will be presented in 2005. In general terms, the Commission recommends adopting, in this area, a sectoral approach based of the type of offence committed.

Money laundering

Conclusion of mid-term evaluation : the Multidisciplinary group on organised crime calls upon the Commission to issue a study on legislative controls on large-scale cash payments within the EU Member States. Following the results of this study, the Council should examine the need for further measures at the European level taking into account the work carried out by the Commission.

Description of action taken

The Commission launched a study on the possibility of preventing the excessive use of cash payments for money laundering purposes. The result of the study was presented to the Commission in July 2003. The aim of the study was to analyse the phenomenon within the European Union and compare the effectiveness of national legislative systems and the current obstacles against the controls. The study recommended the adoption of a domestic regulatory and supervisory regime to detect and monitor the movement of cash in order to prevent the use of large-scale cash payments and cash exchanges to conceal the conversion of criminal proceeds.

Assessment

A proposal for a third Money Laundering Directive was adopted by the Commission in June 2004 [COM (2004) 448]. The proposal for a Third Money Laundering Directive suggests repealing the first and second Money Laundering Directives, consolidating their provisions into a single text. The new proposal seeks to complete certain gaps in coverage and to follow the revised FATF Forty Recommendations. Important changes introduced by the proposed Directive are: extension of the identification, recording and reporting obligations to terrorist financing, more extensive customer identification obligations and the regulation of large scale cash payments, amending the definition of money laundering to facilitate successful prosecution and providing sanctions for failure to record, identify customers or report suspicions for the purpose of money laundering. In particular, in order to prevent large-scale use of cash payments for money laundering purposes, it is now proposed that all persons trading in goods and accepting cash payments above the threshold of 15.000 € should come within the scope of the Directive.

Recommendations for further actions

No further action required.

Analysis of data on organised crime

Conclusion of mid-term evaluation: the Multidisciplinary group on organised crime calls upon the Commission to launch a study on statistics development in the area of organised crime, in close collaboration with Europol, building upon the work already carried out in particular through the Annual Organised Crime Situation Report, and Eurostat. Following the results of this study, the Council should examine the need to establish a research, documentation and statistical network on organised crime on the basis of a proposal from the Commission.

Description of action taken

The Commission funds, through the AGIS programme, a study on statistics in the area of organised crime, the EUSTOC (Developing an EU Statistical Apparatus on Organised Crime) project that will be reported back to the Commission early 2005. A two-year research project, on statistics and other knowledge on organised crime, to be reported in 2006, is funded by the Commission through the Sixth Framework Research Programme.

Other recommendations have been taken into account: The Dublin Declaration[15], endorsed by the Council, recommends that “a comprehensive system of European crime statistics should be elaborated and a co-ordinated EU Crime Statistics Strategy developed.” The Hague Programme “welcomes the initiative of the Commission to establish European instruments for collecting, analysing and comparing information on crime and victimisation and their respective trends in Member States, using national statistics and other sources of information as agreed indicators. Eurostat should be tasked with the definition of such data and its collection from the Member States.”

The Commission has set up an ad-hoc expert group, that has met three times to give input to the Commission and discuss different elements for an action plan for developing comparable EU statistics on crime, victimisation and criminal justice, that the Commission is developing now, to be presented to the Council structures. The Commission has also met with the European Sourcebook Group in a special meeting to discuss closer cooperation.

The draft elements of an action plan in this area have been discussed with representatives of the Member States in three different settings:

- In July 2004 with representatives in the area of Justice and Home Affairs and relevant organisations under the Forum for the prevention of organised crime,

- in September 2004 in a meeting organised by Eurostat with Directors of Social Statistics and

- in July 2004 with the Council Working Group on Statistics.

Cooperation between Directorate-General Justice, Freedom and Security (DG JLS) and Eurostat has been assured through a Memorandum of Understanding signed in September. DG JLS and Eurostat have established cooperation with other important actors in the field, such as the United Nations Office on Drugs and Crime (UNODC) and the United Nations Economic Committee for Europe (UNECE) and will through this cooperation avoid duplication of work.

Assessment

The action taken contributes to the closer cooperation between relevant actors in the field, producers and users of comparable statistics. The results of the above-mentioned study and the research project currently ongoing will be taken into account when considering further actions.

Recommendation for further action

The work to establish a system for statistics on crime, victimisation and criminal justice is a long-term commitment that will necessitate human and financial resources and will have to be developed step by step in close cooperation between different services in the Commission, Member States and Europol. During 2005, the Commission will present a Communication that includes a detailed action plan and a decision to set up an expert committee to guide the work on deciding definitions of crime types etc. Eurostat will set up a Task Force with representatives from Member States to guide the work; the first meeting is planned for May 2005.

Fiscal fraud

Conclusion of mid-term evaluation: the Multidisciplinary group on organised crime calls upon the Commission to launch a comparative study on the respective definitions of fiscal fraud in the Member States and their penal consequences. Following the results of this study, the Council should examine the need for future measures at the European level. In addition, the Commission (OLAF) should also render financial, technical and logistical help to the Member States in the fight against tax fraud, for example by offering a service platform for co-ordinated customs operations or for measures in the context of assistance between Member States.

Several actions have been undertaken by the Commission in order to enhance and intensify administrative cooperation between the tax authorities of all Member States in tackling and preventing tax fraud increase[16].

A study has been commissioned to take stock of the existing situation and to explore the establishment of a common and comprehensive EC concept of fiscal fraud and the harmonisation of criminal sanctions. The study will consist of a description of the legislation or regulations in all the Member States relating to fiscal fraud (VAT, Excise and Customs Duties). Definitions, criminal and non criminal proceedings and related sanctions shall be outlined as well as illustrative descriptions of situations in which fraudulent conduct is assumed. The study should assess benefits which the introduction of identified measures in criminal matters could represent. Follow up will consider draft European legislation, standards and best practices. Their impact on facilitating national and international law enforcement co-operation will also be taken into account. The study on fiscal fraud is scheduled to be completed in July 2005.

In the field of customs cooperation, the Commission coordinates and supports Member States’ customs cooperation under Regulation 515/97[17], offering e.g. the Customs Information System (CIS) and the Anti-Fraud Information System (AFIS). The use of information on financial transactions suspicious of being money laundering of the proceeds of EC-fraud helps to detect and prevent fraud as well as to recover defrauded money. Therefore, OLAF seeks to extend its cooperation with Member States’ Financial Intelligence Units in order to make use of financial information related to money laundering of proceeds from EC-fraud. Currently OLAF is cooperating with the Belgian FIU (CTIF/CFI).

In order to strengthen the legal framework for protection of the EC financial interests, the Council and the European Parliament are currently negotiating the Commission proposal for a Regulation on mutual administrative assistance for the protection of the Community's financial interests against fraud and any other illegal activities[18]. On the particular subject of customs operations, the Commission (OLAF) has provided technical support to the operations via the Anti Fraud Information System (AFIS) infrastructure to ensure the confidential exchange of information, including physical support to the operational co-ordination unit (OCU). The recent development of a virtual OCU application by the Commission will further assist these operations by reducing costs and ensuring participation in the activities of the OCU by all participating countries.

The involvement of organised criminals in fraud against the Community’s financial interests and the transnational nature of such fraud has developed in such a way that it became one of the justifying grounds for the Commission to adopt a Green Paper on criminal-law protection of the financial interest of the Community and the establishment of a European Prosecutor[19] to remedy, amongst others, the fragmentation of the European law enforcement area. The Commission will give follow-up to its past commitments and to the expectations from Member States and other European Institutions in pursuing further the establishment of a European Public Prosecutor’s Office as foreseen in Art. III-274 of the Constitutional Treaty.

In addition, the Commission provided financial support to Member States for joint custom operations that had been decided in the framework of the Customs Cooperation Working Group under the OISIN, and, from 2003, the AGIS programme.

Recommendation for further action

Taking into account the results of the above-mentioned study the Commission will consider EU legislation for the approximation of legislation in criminal matters regarding the constituent elements of and penalties in the field of tax fraud or standards and best practices for the purpose of improving law enforcement cooperation on tax fraud.

In 2005 the Commission (OLAF) intends to submit a proposal for the modification of the Council Regulation (EC) 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters. In this framework, the Commission would give the maximum possible extent to the service platform for co-ordinated customs operations and ensure its financial, technical and logistical support.

Witness protection

Conclusion of mid-term evaluation: the Multidisciplinary group on organised crime calls upon the Commission to launch a comparative study on the existing legislation in the Member States. Due account must be taken of the important work that has already been carried out by Europol. Following the results of this study, the Council should examine the need for further measures at the European level.

Description of action taken

The Multi-disciplinary Group asked the Commission to launch a comparative study on the existing legislation in Member States on the protection of witnesses which should take due account of the work undertaken by Europol in this field. In this regard, a project funded under the AGIS programme (77/2004) was launched and the ‘Institute for International Research on Criminal Policy’ of the University of Ghent was charged with the study.

In addition, Europol set up a working group on the protection of witnesses in which Member States representatives take part. This working group produced two practical documents on witness protection: “Basic principles of European Union police cooperation in the field of witness protection” and “Common Criteria for taking a witness into a Protection Programme”.

At the legislative level the recommendation has not yet materialised in a specific initiative. However, the proposal for a Framework Decision on the fight against organised crime[20] contains a provision regarding persons that take or took part in a criminal organisation and that cooperate in the framework of criminal proceedings. The text stipulates that each Member State may “take the necessary measures to ensure that the penalties may be reduced if the offender renounces criminal activity, and provides the administrative or judicial authorities with information which they would not otherwise have been able to obtain, helping them to prevent or mitigate the effects of the offence, identify or bring to justice the other offenders, find evidence, deprive the criminal organisation of illicit resources or of the proceeds of its criminal activities or prevent further offences being committed”. This provision takes into account the Council Resolution of 20 December 1996 on individuals who cooperate with the judicial process in the fight against international organised crime[21] which makes reference to mitigating circumstances when the perpetrator of an offence gives up his criminal activities and provides the administrative or judicial authorities with information that prevents the criminal activity from being carried further. The proposal for a Framework Decision draws in this regard on the text of Article 6 of the Framework Decision 2002/475/JHA on combating terrorism[22] that was adopted further to a proposal by the Commission.

The Commission also follows with interest the work of the Council of Europe: in February 2003, the Council of Ministers of the Council of Europe created and Experts’ Committee on the protection of witnesses and repentis in the context of acts of terrorism (PCPW) which has the mandate to study measures that allow for reinforcing the protection of witnesses and repentis in the context of acts of terrorism and to make proposals with regard to the elaboration of an appropriate instrument. The Committee adopted a final report which concluded that it would be technically feasible and advisable to establish an international legal framework for the international cooperation in the field of protection of witnesses and collaborators of justice. The Council of Ministers then approved a mandate for a new committee on the protection of witnesses and collaborators of justice (PC-PW) in May 2004 that is asked to draft a proposal for a legal framework. This Committee met for the first time in October 2004 and is working on a draft recommendation.

Lastly, it is appropriate to take into account in the work the Declaration on combating terrorism that the European Council adopted on 25 March 2004 which invites the Commission to bring forward a proposal aimed at the creation of a European Programme for the protection of witnesses in terrorist cases.

Recommendation for further action

The Commission is currently working on a legal instrument on the protection of witnesses and collaborators of justice which will take due account of ongoing work in other fora.

Drug trafficking

Conclusion of mid-term evaluation: the Multidisciplinary group on organised crime considers that it is important that the Council pursues its work against drug trafficking, including a draft framework decision establishing minimum standards on the constituent elements of criminal actions and on the sanctions applicable thereon in the field of drug trafficking.

Description of action taken

Following on from a Commission proposal tabled in May 2001, the Council adopted a Framework Decision laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of drug trafficking in October 2004.

Moreover, the Commission has adopted a Communication on the results of the final evaluation of the EU Drugs Strategy and Action Plan in October 2004.

Assessment

Mission accomplished.

Recommendations for further action

EU Member States are required to take the necessary measures to comply with the provisions of the Framework decision by 12 May 2006. By 12 May 2009 the Commission shall submit a report to the European Parliament and to the Council on the functioning of the implementation of the Framework Decision, including its effects on judicial cooperation in the field of illicit drugs trafficking.

[1] COM(2000)890 of 26.1.2001

[2] The Steering Group on Financial Investigative Training Standards is chaired by the Commission and supported by Europol, the Guardia di Finanza, the Netherlands Police Academy, the UK Assets Recovery Agency and CEPOL.

[3] Camden Assets Recovery Inter-Agency Network

[4] Two common regional measures to combat money laundering and enhance regional cooperation amongst prosecutors were adopted by Western Balkans countries at JHA Ministerial 28.11.03

[5] Report of the Friends of the Presidency on the fight against OC originating from of linked to the Western Balkans, 13.10.04

[6] OJ C 124 of 3.5.2000, p.1

[7] doc 10925/03 CRIMORG 49 of 30.6.2003

[8] OJ L 335 of 11.11.2004, p. 8

[9] COM(2004) 664

[10] COM(2005) 10

[11] COM(2004) 448

[12] COM(2005) 6

[13] COM(2004) 664

[14] COM(2005) 10

[15] doc. 16302/03 CRIMORG 96

[16] Council Regulation (EC) No 1798/2003 of 7 October 2003 (OJ L 264/1 of 15.10.2003) and Commission Regulation (EC) No 1925/2004 of 29 October 2004 (OJ L 331/13 of 05.11.2004) improved the administrative cooperation in the field of VAT. Council Regulation (EC) No 2073/2004 of 16 November 2004 (OJ L 359/1 of 04.12.2004) reinforced the administrative cooperation in the field of excise duties. With regard to direct taxation, the existing Directive 77/799/EEC was amended by Council Directive 2003/93/EC of 7 October 2003 (OJ L 264/23 of 15.10.2003) and Council Directive 2004/56/EC of 21 April 2004 (OJ L 127/70 of 29.04.2004). The Commission (TAXUD) in collaboration with the Member States also created a guide of best practices to tackle and to prevent VAT fraud.

[17] Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, OJ L 082 of 22/03/1997, p.1

[18] COM(2004) 509

[19] COM (2001) 715 final of 11.12.2001.

[20] COM(2005) 6

[21] OJ C 10 of 11.1.1997, p. 1

[22] OJ L 164 of 22.6.2002, p. 3