[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 19.7.2005

SEC(2005) 973

COMMISSION STAFF WORKING DOCUMENT

Annex to the : 2004 Report from the Commission on the protection of the European Communities’ financial interests and the fight against fraud

Implementation of Article 280 of the Treaty by the Member States in 2004 {COM(2005)323 final}

TABLE OF CONTENTS

Introduction 4

1. TEXTES CONTRIBUTING TO THE IMPLEMENTATION OF ARTICLE 280 OF THE EC TREATY – PRINCIPAL LEGISLATIVE DEVELOPMENTS 4

1.1. Legal instruments regulating the setting-up and operation of the AFCOS in the 10 New Member States 4

1.2. Powers of the AFCOS in the anti-fraud investigations in the 10 new Member States 12

1.3. Horizontal developments: New legislative developments contributing to the implementation of Article 280 of the Treaty 23

1.4. Own resources: New legislative developments contributing to the implementation of Article 280 of the Treaty 33

1.5. Agricultural expenditure (expenditure financed by EAGGF - Guarantee section): New legislative developments contributing to the implementation of Article 280 of the Treaty 37

1.6. Structural actions: New legislative developments contributing to the implementation of Article 280 of the Treaty 42

1.7. Significant regulatory and/or administrative developments contributing to the implementation of Article 280 of the Treaty 47

2. MUTUAL ASSISTANCE IN AGRICULTURAL AND CUSTOMS MATTERS (Regulation (EC) No 515/97) 63

2.1. Communications/reports were requested from other Member States in 2002, 2003 and 2004 63

2.2. Communications/reports requested from third countries in 2002, 2003 and 2004 65

2.3. Communications/reports requested by/communicated to the Commission in 2002, 2003 and 2004 69

2.4. Treatment of Mutual Assistance communications diffused by the Commission in order to inform the Member States of a risk of irregularity or fraud (Art.18 of Regulation (EC) 515/97) 70

2.5. Implementation of a request for administrative assistance or a communication requiring the authorisation or the request of a judicial authority (Art.3 §2 Regulation (EC) No 515/97) 80

2.6. Treatment of reports of participants to a mission to a third country by Member State which did not take part in the mission 86

2.7. Administrative or legal decisions relating to the application of penalties for breaches of customs or agricultural legislation in cases which have been the subject of communications under Articles 17 or 18 of Regulation (EC) 515/97 89

2.8. Staff assigned to the implementation of Regulation (EC) No 515/97 in the Member States in 2003 and 2004. 93

2.9. Extension of administrative inquiries initiated under Regulation (EC) No 515/97 in criminal investigations and application of the “Naples II Convention” 95

2.10. Proposals of third countries with which an agreement or a protocol on mutual administrative assistance in customs matters should be concluded as soon as possible 97

3. RECOVERY – JOINING A CIVIL ACTION 100

4. INFORMING THE PUBLIC ABOUT INVESTIGATIONS INTO FRAUD AGAINST THE COMMUNITY BUDGET 120

INTRODUCTION

The protection of the European Communities’ financial interests and the fight against fraud is an area in which responsibility is shared between the Community and the Member States. Consequently, each year the Commission draws up a report in cooperation with the Member States on the measures taken to implement this obligation, according to article 280 of the EC Treaty. This report is adressed to the European Parliament and the Council and is published.

The Commission bases its report on the measures taken by Member States on the replies to the “Article 280” questionnaire. This questionnaire covers the period from 1 January to 31 December 2004.

The present document lists all the answers of Member States to the 2004 questionnaire. The new Member States have in principle only reported on legislation that was adopted or came into force after 1 May 2004.

TEXTES CONTRIBUTING TO THE IMPLEMENTATION OF ARTICLE 280 OF THE EC TREATY – PRINCIPAL LEGISLATIVE DEVELOPMENTS

The first two questions (1.1 and 1.2) concern the ten new Member States:

Legal instruments regulating the setting-up and operation of the AFCOS in the 10 New Member States |

Each new Member State has set up an anti-fraud coordinating service (AFCOS) responsible for coordinating the legal, administrative and operational aspects of the protection of the Community’s financial interests. The Member State is invited to list the legal instruments regulating the setting-up and operation of the AFCOS and specify their status (ministerial decision, government decision, Act of Parliament). |

CY | The Cyprus AFCOS was set up in September 2002 by decision of the Ministerial Council, and two contact persons were appointed by the Legal Service. The members of the AFCOS were designated as the Legal Service (Covert Crime Prevention Unit - MOKAS), the Auditing Service, the General Accounts Office, the Customs Department and the police. |

CZ | By decision of the Czech Ministry of Justice of 17.5.2000, the Chief Public Prosecutor’s Office (CPPO) was designated as the contact point for cooperation with the European Anti-Fraud Office (OLAF) in the Czech Republic. Official cooperation with OLAF began on 15.12.2000 with a meeting initiated by the CPPO, which was attended by OLAF staff and representatives from all the departments directly concerned by the issue of combating fraud and other illegal activity. The outcome of the meeting was a draft agreement on cooperation between the European Anti-Fraud Office (OLAF) and Chief Public Prosecutor’s Office of the Czech Republic in the fight against fraud and other illegal activity to the detriment of the financial interests of the Community in the period prior to the accession of the Czech Republic to the European Union. The agreement was concluded in October 2001 and came into force on 1.1.2002. Further to that agreement, agreements were concluded between the CPPO and individual departments during the first half of 2002 on mutual information in the fight against fraud and other illegal activity to the detriment of the financial interests of the Community in the period prior to the accession of the Czech Republic to the European Union, and at the same time the ministers of the relevant departments designated the staff responsible for cooperation with the CPPO. |

In accordance with the agreements, a committee for registering the findings of case investigations was set up in accordance with Article 3 of the agreements, creating the structure for cooperation with OLAF in the Czech Republic (AFCOS - Anti-Fraud Coordinating Structure), with the Chief Public Prosecutor’s Office as the central coordination point.On 18. 6. 2003 the Government of the Czech Republic adopted Resolution No 601 on improving cooperation between the European Anti-Fraud Office and the Czech State authorities, inter alia obliging the departments concerned to declare irregularities affecting the financial resources of the European Union and to inform the Chief Public Prosecutor’s Office about such cases in order to determine whether a criminal offence has been committed. |

The Government also ordered the drafting of a national strategy against fraud to the detriment of the financial interests of the European Communities. The national strategy against fraud to the detriment of the financial interests of the European Communities was approved by Czech Government Resolution No 456 of 12.5.2004. At the same time members of the Government and the heads of other central State authorities whose activities involve or will involve handling resources from the general budget of the European Union were asked to draw up an internal strategy on methods against fraud affecting or threatening the financial interests of the European Communities on the basis of an assessment of individual elements of the national strategy. The present members of the AFCOS network were also instructed to continue with the currently agreed cooperation arrangements with the CPPO of the Czech Republic and the European Anti-Fraud Office in the context of mutual cooperation when combating fraud affecting or threatening the financial interests of the European Communities and setting up an internal communication network to gather and transfer information on irregularities involving resources from the EU budget (AFCOS). |

EE | Organisation of cooperation with the European Anti-Fraud Office Order No 674-k of the Government of the Republic of October 15th, 2002 Statutes of the Ministry of Finance Regulation No 412 of the Government of the Republic of December 24th, 1999 The tasks of the cooperation partner (AFCOS) of OLAF were added by Regulation No 215 of the Government of the Republic of August 12th, 2003 amending the Statutes of the Ministry of Finance. Rules on recovery and repayment of structural assistance Regulation No 27 of the Minister of Finance of February 25th, 2004 Statutes of the Financial Audit Department Confirmed by Directive No I-1-4/449 of the Minister of Finance of September 30th, 2003 Committee for the Protection of the Financial Interests of the European Union (AFCOS Steering Committee) Directive No 238 of the Minister of Finance of May 27th, 2004 Division of tasks for informing about infringements that occurred whilst using assistance that was co-financed by the European Union. Directive No 416 of the Minister of Finance of October 18th, 2004. |

HU | The Government of Hungary has introduced Government Resolution No. 2255/2001. (XI. 14.) laying out the rules for liaising with OLAF and has assigned this task to the Ministry of Finance. Accordingly, an OLAF Coordination Bureau has been set up within the Ministry’s Legal Department, which is the counterpart of AFCOS in terms of its functions. Act XIX of 2004 on the Customs and Excise Guard – the duties of the Customs and Excise Guard (5)d). The tasks specified in separate legislation in relation to cooperation and coordination with OLAF – the European Anti-Fraud Office – are carried out by the Customs and Excise Guard within the framework of its international operations. Act XXIX of 2004 on the amendment and repeal of certain laws as well as the establishment of certain regulations relating to Hungary’s accession to the European Union – Chapter XII of the Act provides for cooperation with the European Anti-Fraud Office. |

LT | The Financial Crime Investigation Service (FNTT) under the Ministry of Internal Affairs was designated by Resolution No 747 of the Government of the Republic of Lithuania of 24 May 2002 as the body responsible for cooperation with the European Anti-Fraud Office (OLAF) (Official Gazette 2002, No 53-2092). On 9 October 2003 the Lithuanian Parliament amended the Financial Crime Investigation Service Act, laying down the following tasks: - detect and investigate criminal acts and other breaches of the law connected with the receipt and use of financial support from the European Union (EU) and other countries; - implement precautionary measures to prevent misappropriation and wastage of financial support from the EU and other countries; - gather, compile, analyse and summarise information concerning the unlawful receipt and use of financial support from the EU and other countries; - coordinate cooperation by State authorities’ and other bodies’ with OLAF. |

LV | In compliance with Decree no. 495 of the Cabinet of Ministers of 11 September 2002, the Ministry of Finance is the contact point for OLAF in Latvia. Decree no. 895 of the Ministry of Finance of 16 September 2002 established an inter-ministerial working group with the task of preparing an informative report on the circulation of information for co-operation with OLAF. On 14 October 2003 with Decree No.933 of the Ministry of Finance a working group for the co-ordination of co-operation with OLAF was established, and at the same time the composition of the former working group was reviewed. |

MT | During the negotiations of Chapter 28 – Financial Control as shown in the Position Paper for the same Chapter, the Government decided that the Internal Audit and Investigations Directorate (IAID) should be designated as the Anti-Fraud Co-ordinating Service with respect to the management of EU Funds. Furthermore, in 2003, the role of the IAID as AFCOS was also regulated by the Internal Audit and Financial Investigations Act (IAFI Act) Cap 461 which was enacted by the Maltese Parliament. There are also enacted two pieces of subsidiary legislation, which form part of the Act itself, namely to regulate ‘conflict of interest’ situations and defining the extent of audit and investigative duties of the Directorate. |

PL | 1) Regulation by the Council of Ministers, dated 1 July, 2003, concerning the Government Plenipotentiary for Combating Frauds against the Republic of Poland or the European Union (Journal of Laws No. 03.119.1113 with further amendments). Issued pursuant to legislative delegacy set forth in Art. 10.1 and art. 10.4 of the Act on the Council of Ministers of 8 August 1996, the Regulation establishes the Governmental Plenipotentiary for Combating Frauds against the Republic of Poland or the European Union, and sets the scope of his competence and functions. The Regulation also appoints the Bureau for International Treasury Relations of the Ministry of Finance and the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union as administrative bodies responsible for the supply of the Plenipotentiary with services related to the matters covered by his activities. 2) Ordinance No. 62 of the Council of Ministers Chairman (Prime Minister) of 28 July 2003, concerning the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union. The Ordinance establishes the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union and lays down the scope of its competence[1]. 3) Resolution No. 1 of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, dated 30 September 2003, concerning the By-laws of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union. 4) Act on Treasury Control of 28 September 1991 (Journal of Laws No. 04.8.65 as amended). According to the Act, the Bureau for International Treasury Relations of the Ministry of Finance is incorporated in to the structure of the Treasury Control Service and is subordinated directly to the General Inspector of Treasury Control, who also acts as the Governmental Plenipotentiary for Combating Frauds against the Republic of Poland or the European Union. The Act on Treasury Control requires that treasury control service protects the EU own resources as well as controls the expenditure of EU funds. The Act also provides that treasury inspection plans may be forwarded to the European Commission and that representatives of the European Commission may participate in the controls of EU funds. |

5) Regulation No. 102 by the Chairman of the Council of Ministers, dated 30 August 2002, amending the regulation laying down the statute of the Ministry of Finance (Monitor Polski No. 02.38.602). The Regulation issued pursuant to art. 39.5 of the Act on the Council of Ministers of 8 August 1996, establishes the Bureau for International Treasury Relations as a unit of government administration situated within the organisation structure of the Ministry of Finance. 6) Regulation No. 2 of the Minister of Finance dated 21 January 2005, creating the Organisation By-Law of the Ministry of Finance. The Regulation, issued pursuant to the Act on the Council of Ministers of 8 August 1996, lays down the By-Law of the Ministry of Finance and thus sets forth responsibilities and competence of the Bureau for International Treasury Relations being the Ministry’s organisational entity. |

7) Agreement of 1 April 2004 concluded between the Minister of Finance (represented therein by the General Inspector of Treasury Control and the Head of the Customs Service), and the Minister of Agriculture and Rural Development (represented therein by the Undersecretary of State) concerning efficient and effective co-operation between control services in the control of expenses financed from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund. 8) Decision No. 3 of the Chairman of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, dated 10 October 2003, establishing the Multidisciplinary Working Group for fight against the smuggling of cigarettes. 9) Decision No. 2 of the Chairman of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, dated 26 February 2004, establishing the Multidisciplinary Working Group for fight against the subsidies crimes. 10) Decision No. 3 of the Chairman of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, dated 27 February 2004, establishing the Multidisciplinary Working Group for fight against crime in fuel trade. |

11) Decision No. 4 of the Chairman of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, dated 27 February 2004, establishing the Multidisciplinary Working Group for the development of the National Strategy for Counteracting Economic Crime. 12) Decision No. 5 of the Chairman of the Multidisciplinary Team for Combating trafficking the Republic of Poland or the European Union, dated 2 March 2004, establishing the Multidisciplinary Working Group for counteracting irregularities in the use of EU funds. 13) Decision No. 7/2004 of 24 May 2004 and Decision No. 10/2004 of 31 August 2004 of the Chairman of the Multidisciplinary Team for Combating Frauds against the Republic of Poland or the European Union, establishing – within the Multidisciplinary Working Group for counteracting irregularities in the use of EU funds – the Task Group for implementing and monitoring the application of Regulation (EEC) No 4045/89 in Poland. |

14) Decision No. 9 of the Chairman of the Multidisciplinary Team for Combating trafficking the Republic of Poland or the European Union, dated 28 June 2004, establishing the Multidisciplinary Working Group for co-operation of governmental administrative bodies in protecting financial interests of the Republic of Poland and the European Union on the external EU borders. 15) Decision No. 1/KC/2004 of the Minister of Finance of 12 February 2004 establishing the Executive Team for the Implementation of the Customs Information System (CIS) in the customs administration units. 16) Decision No. 1/MS/2004 of the Minister of Finance of 14 June 2004 establishing the Executive Team for the Implementation of AFIS in the organisational entities of the Ministry of Finance and customs administration units. 17) Agreement concluded between the Chief Commander of the Police and the General Inspector of Treasury Control, dated 11 January 2005, concerning co-operation between the Police and treasury control service. 18) Agreements concluded between the Paying Authority and the Managing Authorities[2] 19) “European Union Own Resources. A Guide to Procedures and Administration Structures” – a document developed by the European Integration Department of the Ministry of Finance, approved by the management of the Ministry of Finance in March 2004. |

SI | In Decision No 245-24/2002-1 of 4 July 2002 the Government of the Republic of Slovenia established the Budget Supervisory Service of the Ministry of Finance (now the Budget Supervision Office of the Republic of Slovenia, hereafter: UNP) as the contact point for cooperation with OLAF (AFCOS). At the same time the Government set up an interdepartmental working party for cooperation with OLAF (hereafter: MRDS) consisting of the Supreme State Prosecutor’s Office, the Commission for the Prevention of Corruption, the Ministry of Justice, the Ministry of the Interior’s Criminal Police Directorate, the Tax Administration, the Customs Administration and the Foreign Exchange Inspectorate. In Decision No 245-24/2002-3 of 18 March 2004 the Government of the Republic of Slovenia appointed the representatives to the MRDS. |

The MRDS carries out the following tasks: - preparing the national anti-fraud strategy for the protection of the Community’s financial interests and coordination of its implementation; - detecting any weaknesses in the system for administering and inspecting Community resources, including resources for pre-accession aid (Phare, SAPARD and ISPA) in the Republic of Slovenia; - making suggestions for the legal or organisational changes needed to make the protection of the Community’s financial interests more effective, including proposals to involve other bodies or institutions concerned with the protection of the Community’s financial interests and the establishment of common structures and mechanisms; - informing bodies and organisations responsible for the management of EU resources in terms of both revenue and expenditure of the obligations and procedures with which they have to comply in connection with the protection of the Community’s financial interests; - coordinating findings concerning the training needs of bodies and organisations involved in the protection of the Community’s financial interests; - cooperating with OLAF on the implementation of specific training programmes, including provisional training in other Member States; - providing organisational support for training; - providing support and advice to other bodies and organisations involved in the protection of the Community’s financial interests. |

The institutions making up the MRDS give full support to the UNP in its role as an AFCOS within the areas under their jurisdiction, in particular by providing information on activities or suspected activities harming the EU budget. Under the Public Finance Act the UNP is responsible inter alia for the coordination and harmonisation of the internal control of public finances. In accordance with the Regulations on Guidelines for the Harmonised Functioning of the Public Internal Financial Control, spending authorities must report to the UNP all irregularities they find in connection with the use of EU resources within specific time-limits. The UNP forwards information on any irregularities established to OLAF each quarter. |

SK | Government decision No. 1133/2001 of 28 November 2001 (came into force from 1 January 2002) – the setting-up of the Central Contact Point for OLAF in the Slovak Republic as a department within the Section of Control at the Office of the Government of Slovak Republic Act No. 10/1996 Coll. on Control in the State Administration as amended (amendment published under No. 461, came into force on 1 September 2002, Act of Parliament) – operational powers Co-operation Arrangement between the European Anti-Fraud Office (OLAF) and the Control Section of the Government Office of Slovak Republic in the Fight against Fraud and Other Irregularities Detrimental to the Communities´ Financial Interests, which came into force on 15 September 2002 |

Powers of the AFCOS in the anti-fraud investigations in the 10 new Member States |

The Member State is asked to state, for the following fields, the extent to which the powers of the AFCOS enable it to coordinate and/or conduct anti-fraud investigations, monitor the manner in which anti-fraud investigations are organised and carried out by other institutions or bodies and communicate irregularities and/or coordinate such communications. - AFCOS powers as regards the coordination and/or conduct of anti-fraud investigations - AFCOS powers as regards the monitoring of the methods used by other institutions or bodies to conduct anti-fraud investigations. - AFCOS powers as regards the communication of irregularities to the Commission and/or the coordination of such communications by other institutions and bodies. |

a) Direct expenditure |

CY | The Cyprus AFCOS is not a separate service; in accordance with the decision by which it was set up it comprises a number of services, each responsible for implementing the provisions of the Community Regulations concerning its particular area. With regard to the sending of fraud reports, the General Accounts Office, which is the central payment authority for the Structural Funds, is responsible for implementing Regulation (EC) No1681/94 on irregularities in connection with the Structural Funds and Regulation (EC) No 1831/94 on irregularities in connection with the Cohesion Fund, and is also responsible for notifying irregularities concerning payments made from those Funds. The police and the Customs Department undertake investigations into fraud. As manager of appropriations from the European Agricultural Guidance and Guarantee Fund, the Cyprus agricultural payments organisation (KOAP) will undertake the implementation of Regulation (EEC) No 595/91 on the notification of irregularities in connection with those appropriations, while the Customs Department is contracted by the KOAP to notify irregularities in connection with export refunds. As regards investigations, for those services that do not have powers under the law to carry out investigations into fraud, once suspicions have been raised, the Cyprus Legal Service, as coordinating service of the AFCOS, may give instructions to the police to carry out an investigation. For the purposes of notification, each member of the AFCOS gives an independent notification of the irregularities it has detected. |

CZ | The Czech AFCOS system is a communication platform enabling the bodies that are linked to provide mutual information on established cases of irregularities and on progress in investigating them and allowing mutual coordination in the area of the fight against fraud and other illegal activity to the detriment of the financial interests of the European Communities. In this area it is also responsible for communication with the European Anti-Fraud Office (OLAF). The central focus of the AFCOS network is the CPPO, which, as the central coordination point, communicates with OLAF and with others linked to the AFCOS network. |

Other members of the AFCOS network include representatives of all Managing Authorities, Paying Authorities and Paying Units for the Structural Funds and the Cohesion Fund (Ministry for Regional Development, Min. of Agriculture, Min. of Finance, Min. of Employment and Social Affairs, Min. of Industry and Trade, Min. of the Environment, Min. of Transport, State Agricultural Intervention Fund). These members of the network are responsible for information in the field of indirect expenditure. Each month AFCOS network representatives in the relevant departments (executive functions in the Managing Authorities) regularly receive a statement of established irregularities. After the monthly statement is drawn up, individual cases may be discussed with CPPO if there is doubt about whether they constitute irregularities or criminal offences. On the basis of the monthly statement and the results of any consultations with the CPPO, the AFCOS network representatives draw up regular quarterly statements of established irregularities in the implementation of the Structural Funds and the Cohesion Fund, which are sent via the AFIS information system direct to OLAF. Copies of the quarterly reports are also sent to the CPPO, the Paying Authority (National Funds section of the Finance Ministry) and the Central Harmonisation Unit for Financial Control in the Finance Ministry. AFCOS network representatives thus have an overview of established irregularities and the course of their investigation, including the state of recovery of the sums paid out. If necessary (e.g. at the request of OLAF or the CPPO) they can request the relevant bodies involved in implementation of the Funds for any further information required on established irregularities. |

Consultations between members of the AFCOS network and the CPPO, and the transmission of the quarterly reports on established irregularities to the CPPO ensure that cases of fraud are established in good time and that criminal proceedings are started in cases of irregularities where there is suspicion of a criminal offence. Also important is the transmission of the quarterly declarations on irregularities to the representative of the Central Harmonisation Unit for Financial Control, as this is the central administrative body for financial control and as such is responsible inter alia for the methods used in managing and coordinating implementation of the entire financial control system for the Structural Funds and the Cohesion Fund, for drawing up the relevant documentation on methods, providing consultative, advisory and training services in the field of public administrative controls and on the internal control system in the entire area of implementation of EU resources etc. Keeping this body informed of established irregularities makes it possible to react in time to observed trends and to update methodological tools and, where necessary, legislation. Another member of the AFCOS network is the representative of the General Directorate of Customs, which provides information in the field of own resources (customs). The General Directorate of Customs serves as the National Coordination Unit for mutual assistance with the authorities of other States and international organisations in customs matters. The General Directorate or subordinate customs authorities also have police functions in cases of criminal offences involving infringements of customs regulations and rules on the import, export or transit of goods, and in such cases they may conduct criminal prosecutions. Information in the field of own resources is also provided by the Ministry of Agriculture’s representative. The powers of this member of the AFCOS network are described in more detail under point 3. The AFCOS network also includes representatives of the Police Presidium of the Czech Police. Their participation in the system allows coordination in the field of criminal prosecutions, both in respect of fraud and in respect of counterfeiting of the euro. |

Another member of the AFCOS network is the representative of the Supreme Audit Office (NKÚ). Under the Czech Constitution this body is independent of the executive and can, inter alia, carry out audits of the handling of funds granted to the Czech Republic from abroad, including funds from the general budget of the EC (the mission of the NKÚ is rather like that of the European Court of Auditors at EU level). If, in the course of its activity, the NKÚ establishes facts suggesting that a crime has been committed, it notifies such cases to the authorities responsible for criminal prosecutions. Its participation in the AFCOS network again ensures that information is available on cases of fraud which it has uncovered and that there is coordination in the conduct of criminal proceedings (in detecting and prosecuting fraud). |

EE | - Conduct of the investigation falls in the jurisdiction of the Prosecutor’s Office and investigative bodies (police authorities and the Tax and Customs Board) and AFCOS does not coordinate the investigations or intervene in the investigation process. If the authority conducting state supervision or audit of the final beneficiary responsible for granting assistance or of the grant recipient needs advice, the AFCOS may counsel and if necessary, involve the auditors of the Ministry of Finance, bring the problem to the attention of the State Audit Office, submit data connected with possible violation of law to the Prosecutor’s Office or ask for assistance from OLAF. The Committee for the Protection of the Financial Interests of the European Union (AFCOS Steering Committee) enables both in the form of a meeting as well as bilaterally analysing the cases under investigation and discussing if it would be necessary to start criminal proceedings regarding the infringement detected. AFCOS belongs to the Financial Audit Department of the Ministry of Finance and can instruct the audit divisions located in the same department to carry out audits if necessary. - AFCOS does not monitor the methods used by other authorities during the investigations, state supervision and audits. AFCOS is informed of the final results (including the court judgment) of the investigation, state supervision or audit. If necessary, AFCOS will monitor the progress and development of the investigation, state supervision or audit. - The task of AFCOS includes consolidating data internally regarding infringements and informing OLAF and other agencies if necessary according to the Regulations No 1681/94 and 1831/94 of the European Commission. |

HU | Act XXIX of 2004 on the amendment and repeal of certain laws as well as the establishment of certain regulations relating to Hungary’s accession to the European Union – Chapter XII of the Act provides for cooperation with the European Anti-Fraud Office: Article 125. The basic duties of the OLAF Coordination Bureau are: a) coordinating the tasks to be carried out in relation to safeguarding the financial interests of the European Communities in the course of onsite examinations carried out by OLAF, b) forwarding quarterly reports to OLAF concerning irregularities relating to pre-accession funds, the Structural Funds and the Cohesion Fund, c) participating, as an invitee, in the meetings of the monitoring committees of programmes implemented with the various forms of financial assistance provided by the European Union, d) facilitating the performance of onsite examinations carried out by OLAF on the basis of Community Directives, e) accessing the data contained in documentation relating to tendering for EU support, the contracts concluded with beneficiaries and the use of the supports, f) managing personal data, exclusively for fulfilling its reporting obligation in connection with cases under investigation, as specified in this Chapter, g) forwarding the requests of OLAF pertaining to individual investigations and requests for information commissioned by OLAF to the agencies concerned within no more than 15 days. - The OLAF Coordination Bureau has no investigative power. |

- Government Decree No. 360/2004. (XII. 26.) Korm. on the establishment of the operational programmes of the National Development Plan, the EQUAL Community Initiative programme and the financial implementation, accounting and controlling systems relating to the receipt of support from the Cohesion Fund – Chapter VII: Article 49(1). Within seven weeks of the end of each quarter, on the basis of the quarterly reports submitted by the EQUAL programme managing authority or the Cohesion Fund managing authority, the paying authority shall submit a consolidated report to the OLAF Coordination Bureau of the National Headquarters of the Customs and Excise Guard (VPOP) concerning any irregularity or infringement identified in the course of implementing the projects, the actions taken with respect to such irregularities and the status of ongoing administrative or court procedures. Such report shall be forwarded by the VPOP OLAF Coordination Bureau to the European Commission (European Anti-Fraud Office). (2) Once a year a report is forwarded on the basis of the quarterly reports submitted by the paying authority, the operational programme managing authority and the EQUAL programme managing authority or the Cohesion Fund managing authority, to the OLAF Coordination Bureau, concerning the amounts to be collected through forced collection, organised according to the year in which the collection process is initiated, which is forwarded by the VPOP OLAF Coordination Bureau to the European Commission (European Anti-Fraud Office). Government Decree No. 119/2004. (IV. 29.) Korm. on the financial planning, implementation, accounting and controlling system for using the EU pre-accession facilities and the Transition Facility – Chapter VII: Article 61(1) Within two months of the end of each quarter, the National Programme Authorising Officer shall submit a report on any irregularities or infringements identified in the course of implementing the programmes, the actions taken with respect to them and the status of ongoing administrative or court proceedings, or on the fact that no irregularity or infringement took place – if that is the case – to the EDIS Committee, the ÁBPE Interdepartmental Committee and – through the OLAF Coordination Bureau – to the EU Commission and the EU Anti-Fraud Office (OLAF). |

LT | - The FNTT, like other Lithuanian law enforcement agencies, has the right to launch preliminary anti-fraud investigations, but it does not have the right to coordinate preliminary anti-fraud inquiries conducted by other law enforcement agencies. Moreover, the FNTT has the right to carry out operational tasks, conduct preliminary investigations of financial offences and investigate economic and financial activity. - The FNTT does not have the right to monitor anti-fraud investigations conducted by other institutions and bodies. Only the public prosecutor’s office monitors the way in which officers of such institutions and bodies carry out preliminary investigations or individual actions forming part of such investigations. - Within the limits of its powers, the FNTT gathers and compiles information on the unlawful receipt and use of EU financial support and communicates this to the European Commission. |

LV | - Considering that the AFCOS is located at the Ministry of Finance, the Minister can appoint Financial Police Board or Customs Criminal Board responsible for the coordination and/or conduct of anti-fraud investigations. - AFCOS has no powers regarding monitoring of the methods used by other institutions or bodies to conduct anti-fraud investigations. - AFCOS is responsible for collecting irregularity reports from the institutions involved and forwarding these reports to the Commission. |

MT | According to Article 20 (1) of the IAFI Act, the IAID, for the purpose of carrying out its functions, has the power (a) that in case where the IAID has reason to suspect that irregularities and, or fraud, have occurred or are occurring, to enter any premises for the purpose of conducting a financial investigation, (b) to require the production of any books, records, files, accounts, documents or information including any computer data in any form and or part thereof, including contracts, bills, vouchers and receipts relating to them, and if deemed necessary, to retain such documents in the original, and to ensure that copies or extracts are made thereof without paying any fee thereof notwithstanding any law or regulations to the contrary. In Malta, in terms of Article 23 of the IAFI Act, a Co-ordinating Committee is appointed by the Internal Audit and Investigations Board (IAIB) and chaired by the Director IAID. The purpose of this Committee is to co-ordinate the activities of, and to facilitate the exchange of information among different entities charged with the protection and safeguarding of public including EU funds. This Committee is made up of representatives from organisations that are charged with investigative services in Malta being: IAID, VAT, Customs, Police, Financial Intelligence Analysis Unit (FIAU), Ministry for Rural Affairs and the Environment (MRAE), Attorney General (AG), and the Malta Information Technology and Training Services (MITTS). This monitoring is done through the Co-ordinating Committee mentioned above. As OLAF interlocutors, the IAID is responsible for reporting irregularities to OLAF on a quarterly basis in terms of EC Regulations: 1831/94 (Cohesion Fund); 1681/94 (Structural Funds); and 595/91 (Agricultural Funds – Guarantee Section) These irregularities will be communicated to the Commission through the Anti Fraud Information System (AFIS). |

PL | The Bureau for International Treasury Relations conducts administrative investigations concerning the cases of the breach of financial interests of the European Union, involving first of all irregularities and criminal offences in the application of EU funds. Proceedings are conducted pursuant to art. 47 of the Regulation No. 2 of the Minister of Finance dated 21 January 2005, laying down the Organisational By-Law of the Ministry of Finance. The Bureau for International Treasury Relations conducts proceedings in order to co-ordinate actions taken by competent administrative bodies, institutions and services in order to protect financial interests of the European Union. For that purpose, the Bureau for International Treasury Relations co-operates with the Prosecutor’s Office, the Police, the Border Guard, the Customs Service, units subordinated to the General Inspector of Treasury Control and other bodies that are involved in the application and control of EU funds. Moreover, in performing its duties, the Bureau for International Treasury Relations co-operates and exchanges communications and information with OLAF in Brussels and with other customs and treasury services of Member States with respect to the protection of financial interests of the European Union. The Bureau for International Treasury Relations, in certain cases, may carry out the control of use of EU funds in the scope provided by the Act on Treasury Control. The Bureau for International Treasury Relations co-operates with investigation bodies with respect to subject matters covered by operational or legal actions conducted by these bodies in relation to the protection of financial interests of the European Union. The Bureau for International Treasury Relations, acting as AFCOS, provides – within the scope of its competence – administrative assistance when requested to do so by domestic and foreign authorities. The Bureau for International Treasury Relations may instigate administrative investigations and co-ordinating proceedings concerning irregularities, frauds, acquisition of property under false pretences and corruption detrimental to financial interests of the European Union and the Republic of Poland. Within the framework of these proceedings, the Bureau may co-operate with departments, services and institutions whose actions concern the finance of the Republic of Poland and the European Union. |

The Bureau for International Treasury Relations may – with respect to the protection of the financial interests – initiate checking and explanation procedures to be conduced by investigation bodies (the Police) as well as the Treasury Control Service and the Customs Service. The Bureau for International Treasury Relations may mandate treasury controls to be performed in other institutions involved in EU funds implementation in order to detect possible financial irregularities or to determine whether applicable procedures are applied by the audited institution in a proper manner. The Bureau for International Treasury Relations may instigate and monitor actions conducted by internal audit units of government and/or local administration bodies with respect to matters related to possible irregularities in the management of EU funds. The Bureau for International Treasury Relations forwards to OLAF communications on irregularities found in the course of the scrutiny of projects financed from EU funds. |

SI | In accordance with the rules, Community resources form an integral part of the national budget and as such are the object of uniform surveillance, although there is additional surveillance in accordance with special Community requirements. On the basis of the rules of public internal financial control, the UNP combines a number of functions: - It directs, harmonises and inspects the operation of financial management and internal control systems and the internal auditing of the spending authorities. If there is any suspicion of irregularities in connection with the use of Community resources, the internal auditors of the spending authorities are obliged to inform the UNP without delay; - As an independent control body for Community resources (the certification body for the EAGGF Guarantee Section – certification of revenue and expenditure - and the audit body responsible for all other funds - certification of revenue on completion of the project, 5% or 15% control), the UNP always examines the adequacy and effectiveness of the inspection systems. If there is any suspicion of criminal activity, its auditors inform the Public Prosecutor’s Office and the police; - In its role as an AFCOS, the UNP is not responsible for the investigation of fraud as this is the task of the Public Prosecutor’s Office; however, it cooperates within the MRDS in the exchange of information and proposals for operations. Within the MRDS, the bodies making up this group preserve their independence and organisation. The MRDS permits the exchange of information on irregularities and the way in which they are dealt with and allows the UNP to act as coordinator. The Public Prosecutor’s Office directs and manages the pre-trial procedure. The UNP is not responsible for monitoring how the investigations are conducted. Under the Guidelines on the communication of irregularities, which form an integral part of the system of financial management and internal control, the UNP is responsible for the collection of information concerning irregularities and sending it to OLAF and the National Fund or management body. |

SK | - Pursuant to Act No. 10/1996 on Control in State Administration as amended AFCOS as an organizational part of Government Office of the Slovak Republic fulfils tasks related to the control and protection of the financial interests of the European Communities. Referring to the above-mentioned law AFCOS may perform controls (administrative investigations) of the efficiency of the use of state budget funds and funds provided from EU. Due to provision of the section 14 of the above-mentioned law the AFCOS may ask any other public administration authority for the co-operation by performance of controls and/or to provide the required information related to the control process and results of control activities as well. - Methods of the performance of control used by other institutions are based on binding legal provisions by course of them these controls are performed or on own internal rules of the public administration authorities. In this connection, the AFCOS may not interfere and influence the application of these methods, the AFCOS can only, pursuant to a request, provide assistance to these authorities with its own knowledge and experience and/or forward their request to other authorities of the Slovak Republic or OLAF. - The AFCOS, pursuant to agreements with relevant authorities, is the only body, which communicates to OLAF the irregularities detected. The irregularities reporting procedures in the Slovak Republic are set up in the manuals of relevant authorities and they were audited by the European Commission in the course of the preparation of the Slovak Republic to the EU accession. |

b) Traditional own resources |

CY | See point a) |

CZ | See point a) |

EE | AFCOS lacks powers. It is a task of the Tax and Customs Board. AFCOS has access to the OWNRES system in order to monitor reports regarding submitted infringements. |

HU | See point a) |

LT | See point a) |

LV | Considering that the AFCOS is located at the Ministry of Finance, the Minister can appoint Financial Police Board or Customs Criminal Board responsible for the coordination and/or conduct of anti-fraud investigations. AFCOS has no powers regarding monitoring of the methods used by other institutions or bodies to conduct anti-fraud investigations. These powers have been delegated to the State Revenue Service. In order to ensure the communication of the found irregularities as is determined by the Commission Regulation No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources, State Revenue Service has issued an order on April 29, 2004 which sets down the procedure how information on cases of irregularities and fraud are obtained, summarized and registered in the OWNRES system. |

MT | See point a) |

PL | The Bureau for International Treasury Relations conducts administrative investigations and proceedings in order to co-ordinate actions taken by competent bodies and services, related to irregularities in own resources (custom duties and sugar levies), detrimental to financial interests of the European Union or the Republic of Poland The Bureau for International Treasury Relations may instigate administrative investigations and co-ordinating proceedings concerning irregularities, frauds, acquisition of property under false pretences and corruption detrimental to financial interests of the European Union or of the Republic of Poland. Within the framework of these proceedings, the Bureau may co-operate with departments, services and institutions whose actions are related to the finance of the Republic of Poland and of the European Union. The Bureau for International Treasury Relations may – with respect to the protection of the financial interests – initiate checking and explanation procedures to be conduced by investigation bodies (the Police) as well as the Treasury Control Service and the Customs Service. Pursuant to the Act on Treasury Control of 28 September 1991 (Journal of Laws [Dz.U.] No. 04.8.65, as amended), the Bureau for International Treasury Relations supervises control and inspection procedures conducted by Treasury Control Offices with respect to the correctness of the transfer of own resources to the EU budget. The entry of data into OWNRES system, concerning irregularities in own resources, is the responsibility of the Customs and Excise Control Department of the Ministry of Finance |

SI | - The UNP’s powers are the same as in the case of Community expenditure. If there is any suspicion of criminal activity reported by the internal auditor of the spending authority or the UNP auditor in the certification or control procedure, the UNP must immediately inform the Public Prosecutor’s Office and the police, which of course are also represented on the MRDS. In accordance with Regulation No 1150/2000 the Customs Administration notifies the European Commission of irregularities of more than EUR 10 000. - As in the case of indirect expenditure, each body retains its independence. The Public Prosecutor’s Office manages the pre-trial procedure. The bodies retain their organisational and autonomous relations while the UNP acts as coordinator. - The Customs Administration reports direct to the European Commission. |

SK | See point a) |

Horizontal developments: New legislative developments contributing to the implementation of Article 280 of the Treaty |

Have there been any significant new legislative horizontal developments contributing to the implementation of Article 280 of the Treaty in 2004? Member States are asked to list only national measures and not those which simply transpose Community legislation. If so, please give a brief description below. |

BE | A. TAX MEASURES 1. The Law of 12 January 2004 (Moniteur belge, 23 January 2004) added a new paragraph to Article 17(2) of the Law of 11 January 1993 on preventing the use of the financial system for money-laundering. This created the Financial Information Processing Unit (CTIF/CFI). Article 17(2) now states that “if such transmission (i.e. transmission of information on the laundering of capital or goods by the CTIF/CFI to the public prosecutor or federal prosecutor), concerns information on the laundering the proceeds of a crime associated with serious and organised tax fraud, which employs complex mechanisms or uses processes with an international dimension, or the proceeds of a crime falling under the jurisdiction of the Customs and Excise Administration, the CTIF/CFI will inform the Ministry of Finance of the transmission”. The scope of this provision includes fraud affecting the budget of the European Communities. The Belgian Customs and Excise Administration have seconded a part-time liaison officer from the National Investigation Directorate of the Customs and Excise Administration to the CTIF/CFI. 2. The law of 13 September 2004 ratified the Naples II Convention. |

B. FINANCIAL MEASURES: 1. The Law of 12 January 2004 amending the Law of 11 January 1993 on preventing the use of the financial system for money-laundering, the Law of 22 March 1993 on the statutes and supervision of credit institutions, and the Law of 6 April 1995 on the statutes and supervision of investment companies, financial intermediaries and investment consultants, published in the Moniteur belge of 23 January. 2. The Royal Decree of 21 September 2004 modifying the list of organisations subject to the Law of 11 January 1993 on preventing the use of the financial system for money-laundering and for financing terrorism and amending the Royal Decree of 11 June 1993 on the composition, organisation, operation and independence of the Financial Information Processing Unit, published in the Moniteur belge on 6 October 2004, * go beyond simply transposing European measures * have extended the scope of the Law of 11 January 1993 to new categories of organisations and individuals and have increased the maximum number of members of the Financial Information Processing Unit to eight, reflecting the increase in the number of cases and in order to ensure the proper functioning of the Unit. The Law of 12 January 2004 allowed a senior officer from the Federal Police to be appointed to the staff of the Financial Information Processing Unit. Previously the Unit consisted of six members: three judges seconded from the public prosecutor's offices and three financial experts. 3. The Banking, Finance and Insurance Commission Regulation of 27 July 2004 on preventing money-laundering and the funding of terrorism and the Royal Decree of 8 October 2004 adopting this Regulation, published in the Moniteur belge on 22 November 2004, also contain a number of measures (in particular Article 31) which contribute to the implementation of Article 280 of the Treaty. |

CZ | Decree No 416 of 2004, implementing Act No 320/2001 on Financial Control in the Public Administration. This decree spells out the methods and procedures for carrying out individual types of financial control governed by the Financial Control Act and sets out the content, manner and time limits for the presentation of the annual summary reports on the results of financial controls. Decree No 240/2004, on information systems on the award of public contracts and methods of evaluating tenders in terms of their value for money. This decree was issued to implement the new Act No 40/2004 on the award of public contracts. The new law was adopted with a view to harmonising Czech legislation with European legislation and other Community provisions (White and Green Papers on public contracts). Czech Government Resolution No 456 of 12. 5. 2004, adopting the National Strategy against fraud affecting or threatening the financial interests of the European Communities. In particular it defines the AFCOS network, sets out a procedure for declaring irregularities, lays down measures against corruption and gives an overview of the essential legislative changes required to implement the obligations stemming from agreements concluded at EU level on the protection of the financial interests of the European Communities. |

EE | Directive No 238 of the Minister of Finance of May 27th, 2004 : In order to ensure effective cooperation concerning illegal activities in the field of protection of financial interests, the AFCOS Steering Committee has been established within the Financial Control Department, which includes representatives of the Tax and Customs Board, Security Police, Central Criminal Police, State Audit Office and State Prosecutor’s Office in addition to the officials of the Ministry of Finance. The main tasks of the Management Committee are the following: Exchange of information and cooperation at the national level and with OLAF regarding the anti-fraud co-ordinating service of the Union; Make proposals for resolving Problems raised by OLAF, including initiating investigations; Make proposals for resolving fraudulent conduct, corruption or other violations of law damaging the financial interests of the European Union; Make proposals for improving the system for the Protection of the Financial Interests of the European Union. |

EL | Law 3263/2004 “on the system of awarding public contracts to the lowest bidder and other provisions,” which abolishes the mathematical method and introduces the system of awarding to the lowest bidder, with increased guarantees in cases of high discounts; Extension of Law 716/1977 “on the Register of Researchers and the assignment and drafting of studies” for a period of six months following suspension of Law 3164/2003, pending the adoption of a new law on studies. |

FI | The amendment of the State Budget Act (423/1988), adopted in 2003, came into force on 1 January 2004. This law created the financial controller function to act as the Government’s joint guidance and control authority. The function is operationally independent and has a statutory right to information from central government. Section 24f(1)(3) of the State Budget Act states that it is the duty of the financial controller function to coordinate the internal and administrative control of European Union funds for which the Finnish State is responsible and draw up opinions and reports relating to the supervision and audit of Union funds, errors in management of these funds and irregularities involving them for European Union institutions and other bodies. |

The State Budget Decree (1243/1992) was amended by Decree 254/2004. The Government established an Internal Control and Risk Management Board within the Ministry of Finance on 9 September 2004 for a mandate ending on 30 September 2007. The Board is a new statutory body and its duties, in accordance with Section 71 of the State Budget Decree, include harmonising the procedures of the various authorities and government agencies as regards internal control and administrative supervision of financial management and preparing the requisite measures; monitoring and assessing the state of the internal auditing set-up, the quality and performance of the work and how it is used for management and guidance purposes, and the methods and general trend in internal auditing, and launching initiatives for the development of internal auditing and its utilisation; arranging cooperation on internal auditing by the various government agencies and, where necessary, harmonising the internal auditing work of the various government agencies and exploiting the results; monitoring and assessing the control and auditing of funds of the European Union and reporting on them in Finland and harmonising and developing the activities and procedures of the various authorities and government agencies in this respect and drawing up measures necessary for harmonisation and development; monitoring and assessing the situation as regards irregularities and offences committed in the activities of government agencies or directed against the assets or property of the government or against assets or property for which the government is responsible and coordinating and developing the activities and procedures of the various authorities and government agencies in this respect, as well as reporting on irregularities and errors. |

It is also the duty of the Board to deal on a preliminary basis with the information collected from Finland for the report referred to in Article 280(5) of the Treaty establishing the European Community and also with Finland’s reply to the Commission of the European Communities on the annual report of the Court of Auditors. The chair of the Board is the Government Controller-General and the deputy chair is the Deputy Government Controller-General. The Government appoints the Board and its members and deputy members for three years at a time, so that it has a representative from each Ministry and, where necessary, representatives from the Board’s principal cooperation partners, as well as experts on fiscal administration, public finances and management, and financial control and auditing. The new Section 65(1)(9) of the State Budget Decree stipulates that, from 2004, the final accounts of the state accounting offices are to include a summary of irregularities and offences relating to state assets or assets for which the State is responsible and of pre-trial investigation and legal proceedings, as well as of other procedures initiated as a result of irregularities and offences. |

FR | Act No 2004-204 of 9 March 2004 adapting the judicial system to developments in criminal behaviour (la loi portant adaptation de la justice aux évolutions de la criminalité) extends the remit of the French national judicial customs department (service nationale de douane judiciaire, SNDJ) to cover all offences affecting the financial interests of the European Union. Customs officers authorised to carry out judicial investigations could already (like other customs officers) investigate and record offences concerning own resources and advantages granted under the EAGGF-Guarantee Section, provided for in the Customs Code. Article 28(1) of the Code of Criminal Procedure, which is amended by the new Act, states that judicial customs officers are now also authorised to deal with offences concerning Structural Funds. This Act, which transposes the framework decision 2002/584/JAI concerning the European arrest warrant[3], specifies the conditions of delivery and execution of such a warrant by the French judicial authorities. This same law of 9 March 2004 also sets out the following provisions: - Creation of interregional courts specialised in economic and financial matters. - Waiver of secrecy with a view to improve the fight against undeclared economic activities which can involve Community funds. - Possibility to take precautionary measures concerning the assets of the defendants in a judicial inquiry in the area of organised crime. |

HU | The methodology guide issued by the Ministry of Finance concerning the management of irregularities, pertaining to state administration agencies: Pursuant to Article 145/A (5) of Government Decree No. 217/1998. (XII. 30.) Korm. on the public finance operating system, the heads of budgetary organisations are obliged to introduce a system of procedures for the management of irregularities. |

IE | The Naples 2 Agreement (Convention of 18 December 1997) was ratified and became operative by Ireland on 26 June 2004. The enabling legislation is the Customs and Excise (Mutual Assistance) Act 2001. |

IT | Law 36 of 6 February 2004 (New Forest Rangers' Code) vested the Forest Rangers with responsibility for carrying out inspections on the basis of EU agroforestry and environmental legislation and for taking part in enforcing legislation governing food security, consumer protection and biosecurity in general (section 2(1)(e)). |

LT | Government Resolution No 77 of 27 January 2004 amending Resolution No 953 of the Government of the Republic of Lithuania of 31 July 2001 on the procedure for the administration, management and control of European Union financial support. This Resolution lays down the obligation to submit reports on irregularities. Act No IX-1992 of 29 January 2004 amending Article 206 of the Criminal Code and establishing liability for the use of targeted assistance for a purpose other than that intended or in a manner other than that laid down. The FNTT signed an agreement on administrative cooperation with OLAF on 1 February 2004. Act No IX-2021 of 12 February 2004 on the ratification of the Convention on the Protection of the European Communities’ Financial Interests, drawn up on the basis of Article K.3 of the Treaty on European Union, and the protocols thereto drawn up on the basis of Article K.3 of the Treaty on European Union. Government Resolution No 661 of 31 May 2004 amending Resolution No 953 of the Government of the Republic of Lithuania of 31 July 2001 on the procedure for the administration, management and control of European Union financial support. This Resolution lays down the definition of the term “irregularity”. |

LV | Amendments in the Law on Credit Institutions entered into force stipulating that the Corruption Prevention and Combating Bureau is mandated to receive information while investigating criminal cases (with a Prosecutor’s permission) as well as information on donations received by political organizations and on assets and debt commitments of state officials (with a permission of a Prosecutor or chairmen of the Supreme Court). National Programme for Corruption Prevention and Combating for 2004-2008 was adopted by the Government on 3rd August, 2004. The Programme clearly sets priorities, defines responsible institutions, their tasks and timeframe for the implementation of the strategy thus effectively coordinating the cooperation amongst all the agencies involved. The CPCB is responsible for control and co-ordination of the implementation of the Program and report on implementation to the Cabinet of Ministers. One line of activities within the frame of the Programme is addressed to ensure legitimate and expedient allocation of funding of the European Union and international institutions and organizations in terms of defining the scope of those public officials involved and introducing control and monitoring mechanisms over the allocated funding. In order to gather information on personnel working with European Union the Bureau asked all relevant institutions to submit lists of public officials as well as description of procedures working with EU funds. This information could be used for random examinations to prevent conflict of interest situations in activities of particular public officials. Amendments to the Law on Financing of Political Organisations (Parties) are effective as from March, 2004. The general objective of the amendments was to eliminate existing loopholes in the law, improve the control mechanisms and make the process of political party financing more transparent. Stricter criteria of political parties’ financing, as well as stronger sanctions for violations of this law were introduced by those amendments. Among many other changes, restrictions to receive donations from legal persons were introduced apart from an obligation to declare source of financing. Criminal liability for intermediation in financing political organizations has been introduced in the Criminal Law. Republic of Latvia Cabinet Regulation No 298 Adopted 13 April 2004 On procedure for preparation, approval, implementation and monitoring of the projects financed from the European Union Cohesion Fund |

Other developments: in order to improve efficiency of control system over income for natural persons and to solve currently acknowledged problems detecting the origin of illicitly acquired means the Bureau initiated creation of working group comprising officials from state institutions as well as nongovernmental community. By December 2004 work on draft Concept on Improvement of Income Control of Individuals was finalised. Several lines of activities laid down in the Concept of Income Control for Natural Persons that are seen as solution to current problems however as most rational approach is introduction of overall income declaration system in Latvia. The Concept is to be examined by the Government and most appropriate suggestion will be approved. In order to solve detected problems in renting out state and municipal property (real estate) a working group has been created. Expected outcome is elaboration of amendments to current legislation thus eliminating existing loopholes. The Bureau has contributed to the process of ratification of United Nations Convention against Corruption in Latvia. Draft law on ratification has been elaborated and currently harmonisation process among institutions takes place. |

PL | Act of 24 July 2003 amending the Treasury Penal Code (Journal of Laws No. 03.162.1569) entered into force on 1 May 2004. Within the Polish legal system, the Treasury Penal Code regulates matters related to penal liability for prohibited acts (treasury criminal offence or treasury petty offence) involving the infringement of financial interests of the state (within a broad meaning of the term) secured by customs law, tax law, currency law and public finance legislation. Amendments that entered into force extend the applicable catalogue of penalised offences by treasury criminal offence against financial interests of the European Communities committed or aided by a Polish citizen (in Poland or abroad) or a foreign subject (in Poland). And further, the amendment to the Treasury Penal Code provides that within the meaning of the Code a revenue of the general budget of the European Communities or a budget managed on behalf of or by the European Communities constitutes legal public duty. Hence, after the amendment of the Code, the penal provisions of the Treasury Penal Code also apply to prohibited acts (for instance, undue payment or drawing of moneys in contravention of the objective of subsidy or subvention) involving funds being the dues of the budgets of the European Communities. On 1 May 2004, Act of 19 March 2004 entered into force and amended the Fiscal Ordinance and the Act on Treasury Control. Consequently the General Inspector of Treasury Control was imposed with the obligation to communicate to the European Commission, plans of control of EU resources and other resources appropriated for programmes co-financed by the European Union. The Act amended art. 34a.5 of the Act on Treasury Control. The Act after amendments provides that documents containing information other than that referred to in art. 33 of the Act on Treasury Control (i.e. disclosed by banks, information relating to a person against whom preparatory proceedings have been instituted on the ground of suspicion of criminal offence or petty offence or treasury criminal offence or treasury petty offence) may be disclosed on a reciprocal basis to other states or to the European Commission by treasury control bodies to the extent that the disclosure is related to programmes financed from the resources of the European Union or to the correctness of the transfer of own resources to the budget of the European Union.. The provision was introduced with respect to the control of projects implemented within the framework of the Community initiative of INTERREG III. The nature of these projects requires exchange of information between services scrutinising the said projects located in various countries. The wording “on a reciprocal basis” means that information will be disclosed to foreign scrutiny authorities by Polish treasury control bodies only where Polish treasury control bodies may obtain similar information from the given foreign party. |

PT | Law No 48/2004 of 24 August 2004 amends for the third time Law No 91/2001 of 20 August 2001, the Law regulating the budget. Portugal would like to draw attention to Article 62 (Checks on Public Spending), according to which (paragraph 1)“spending by the bodies mentioned in Article 2(1) [services without administrative and financial autonomy, services and funds that are autonomous and/or relate to social security] shall be subject to an external audit at least every eight years. This audit shall include an assessment of the body’s mission and objectives, as well as the economy, efficiency and effectiveness of the expenditure effected”; (paragraph 2) “the system of internal checks on operations giving effect to the budget and related procedures […] must be subject to auditing within the framework of the Internal Audit System […]” Decree-Law No 2/2005 of 4 January 2005 states that in order to transfer the head office of a European public limited company from Portugal to another Member State, proof must be provided that its tax and social security situation are in order. In the absence of such proof, the certificate stating that the transfer of the head office is admissible will not be issued; Decree-Law No 53/2004 of 18 March 2004 (Insolvency and Business Recovery Code), as amended and reframed by Decree-Law No 200/2004 of 18 August 2004. This law reforms the business recovery and insolvency procedure, placing particular emphasis on expediting the process. It also reforms the methods and procedures for the liquidation of goods and for payments to creditors, particularly the State. The aim is to minimise loss of the value of the assets of insolvent businesses and the rights of all stakeholders in the business (shareholders, workers, creditors and management staff). |

SI | The Act Amending the Penal Code (KZ-B; Official Gazette 40/2004) should be mentioned in this connection as it also amends the articles relating to fraudulent behaviour in the acquisition of loans or facilities, to fraudulent behaviour in share dealings and the unauthorised use of foreign labels or models, amends the article relating to the receipt of kickbacks for unlawful mediation and introduces a new article relating to the offering of kickbacks for unlawful mediation. Before KZ-B took effect, Article 254 of the Penal Code defined the criminal offence of tax evasion resulting from fraudulent behaviour only vis-à-vis the tax body. In line with the requirements of the Convention on the protection of the Community’s financial interests, the KZ-B extended the charges under Article 254 to “fraudulent behaviour towards any body which is responsible for assessment or for monitoring entry in the accounts and payment of the financial obligations of natural or legal persons”. |

SK | - Act No. 523/2004 Coll. 2004 on Budgetary Rules and on Amending and Supplementing Certain Acts There is stated infringement of the budgetary discipline in the section 31, which is consequence of the irregularities arisen on the basis of the infringement of the EU legislative and generally binding legal provisions of the Slovak Republic found out during financial control of public resources spent. Provisions of the mentioned section state amount and conditions of sanction impose in the case of infringement of financial discipline. The provision of Section 31 paragraph (15) of the Act No. 523/2004 Coll. solves procedure considering of levies, penalties and fines in consequence of infringement of financial discipline at the spending of EU resources through Section 20 of the same act. - Act No. 618/2004 Coll. (valid since 1st January 2005), which amends and supplements the Act No. 502/2001 Coll. - in Section 35 paragraph (9) of the novel of this Act, there is stated the obligation for internal auditor to draw attention to treating risk, which could negative exert influence upon the audited entity, or if the facts establishing suspicion of criminal offence were found out, if needs urgently; in this case internal auditor shall draw up Partial Report on Result of Audit Action before finishing of audit action and submits this partial report to the law enforcement authorities and in case of suspicion of ineligible spending of EU resources to the legal person through which the EU resources were provided and to the Central Contact Point OLAF for the Slovak Republic. The Slovak Republic has ratified the Protection of Financial Interests Convention and its two additional Protocols (announcement of Ministry of Foreign Affairs of Slovak Republic No. 703/2004 B. of A., No. 704/2004 B. of A, No. 705/2004 B. of A.) |

UK | Disability legislation introduced in the UK in 2004 requires enterprises to provide equal access of their services to disabled people. Organisations applying for Structural Funds support would have to take this into account, not least given the Funds’ emphasis on mainstreaming equal opportunities. |

Own resources: New legislative developments contributing to the implementation of Article 280 of the Treaty |

Have there been any significant new legislative developments contributing to the implementation of Article 280 of the Treaty in 2004? Member States are asked to list only national measures and not those which simply transpose Community legislation. If so, please give a brief description below. |

CZ | Act No 185/2004 on the Customs Administration of the Czech Republic. Under the Act the General Directorate of Customs acts as the National Coordination Unit for mutual assistance with the authorities of other States and international organisations in customs matters. This function also includes the power to inform the Commission of irregularities in the area of own resources and the power to coordinate the activity of the General Directorate of Customs in this area. |

EE | Directive No 423 of the Minister of Finance of October 25th, 2004 : The directive sets out among other things the obligations of the relevant authorities regarding control of the collection of own resources, audit, recovery and reporting of infringements. Division of tasks for organisation of fulfilment of the budgetary obligations of Estonia for the general budget of the European Communities regarding own resources. |

ES | - Law 58/2003 of 17 December 2003 (General Tax Law) This Law entered into force on 1 July 2004. Its main objectives in relation to the implementation of Article 280 of the Treaty are: making it possible to use new technologies, modernising tax procedures and setting machinery in place to strengthen the fight against fraud, tighten up tax checks and improve the collection of tax debts. - Law 62/2003 of 30 December 2003 on tax, administrative and social measures Certain exemptions provided for by Law 37/1992 of 28 December 1992 on value added tax are withdrawn, including the exemption for certain transactions involving recycled materials, which is replaced by a scheme in which the taxable person for VAT purposes is the business operator or trader receiving the materials. |

IE | The legislative provisions governing cash seizures have been significantly extended in the Proceeds of Crime Amendment Bill which has already been passed by Parliament and is due to be signed into law early in 2005. These provisions enable Customs and Revenue Officers to seize cash anywhere in the State, which is believed to be the proceeds of crime or intended for criminal conduct. Crime/criminal conduct covers all forms of criminal behaviour including fraud in relation to Own Resources. An explicit power to search for cash at points of entry/exit from the State is also provided under the legislation. |

LT | Act No IX-1781 of 16 October 2003 on the provision of assistance to EU Member State authorities for the recovery of amounts due in connection with levies, duties, taxes and other sums of money and the use of assistance provided by authorities of other EU Member States for the recovery of the aforementioned sums of money. |

LV | In order to ensure organization of the common European sugar market in Latvia the law regarding sugar field was adopted on April 7, 2004 which came into force on May 1, 2004.On April 29, 2004 the Cabinet of Ministers adopted regulations No 461 which determine the procedure how sugar producers submit to the Rural Support Service information necessary for analysis of sugar market. These regulations determine also the contents of information to be submitted. On March 23, 2004 the Cabinet of Ministers adopted regulations No 163 which determine the procedure by which functioning of the European Communities’ (Communities) own resources system, including execution of tasks connected with establishment, forecasting, collection, transmission and control of own resources, is ensured. |

MT[4] |

PL | On May 1, 2004 amendment to art. 2.1.6 of the Act on Treasury Control entered into force pursuant to the Act of 27 June 2003 establishing Voivodship Treasury Boards and amending certain acts regulating responsibilities, competence and organisation of administration bodies subordinated to the minister competent in public finance. The amendment extended the scope of treasury controls by the scrutiny of the transfer of own resources to the budget of the European Union and to that extend falls within the competence of the Bureau for International Treasury Relations[5]. The Customs Law of 19 March 2004 (Journal of Laws No. 04.68.622) entered into force on 1 May 2004. The Law regulates and complements the Communities customs legislation on the importation of goods to the customs area of the Community and the exportation of goods outside the customs area of the Community. The Law provides and regulates customs exemptions, customs debt, customs proceedings, reporting and statistics of the trade in of goods with Member States. The Law also provides procedures applicable to goods covered by the Common Agricultural Policy. Pursuant to art. 96 of the Customs Law, the Minister of Finance issued a regulation[6] laying down patterns of documents to be used in the trading in of goods covered by the Common Agricultural Policy, and rules for handling these goods by the Customs Service. These transparent regulations completing Communities laws are of great importance to proper accrual of contributions due to the budget of the European Union as regards customs duties. Act of 11 March 2004 on the Agricultural Market Agency and the organisation of certain agricultural markets entered into force on 1 May 2004 (Journal of Laws No. 04.42.386 with further amendments). Pursuant to art. 32.2b of the Act, the President of the Agency may collect sugar levies from producers of sugar and isoglucose, inclusive of sanction fees chargeable on C sugar and isoglucose that have not been exported within prescribed time limits. Art. 13 and art. 13a of the Act lay down rules for the determination and recovery of unpaid amounts due and payable on account of sugar levies and sanction fees. Sugar and isoglucose production volumes are subject to control at production plants by the Inspection of the Commercial Quality of Foodstuffs and Agricultural Products. The control is executed within the framework of tasks assigned to the Agricultural Market Agency. Additionally, the system of measures for the protection of financial interests of the European Union in relation to own resources consists also of other instruments that entered into force before 1 May 2004[7]. |

Agricultural expenditure (expenditure financed by EAGGF - Guarantee section): New legislative developments contributing to the implementation of Article 280 of the Treaty |

Have there been any significant new legislative developments contributing to the implementation of Article 280 of the Treaty in 2004? Member States are asked to list only national measures and not those which simply transpose Community legislation. If so, please give a brief description below. Please state whether the measures are general or if they apply to a specific sector of the EAGGF-Guarantee section and which one. |

AT | Amendments to national special guidelines (e.g. Rural development, Environmental program). |

EE | The Regulation No 160 of the Government of the Republic of April 29th, 2004 plans the details for cooperation between the paying agency and the control authorities. (http://www.riigiteataja.ee/ert/act.jsp?id=803261) |

EL | The following horizontal decisions have come into effect: Joint Ministerial Decision No 324032/24.12.04 “on cross-compliance and other additional measures”; Joint Ministerial Decision No 217838/04.02.2004 “on the setting up of a committee to examine appeals against the outcome of second-level controls carried out by the OPEKEPE on Community aid schemes.” Regarding the payment of aid to beneficiaries under agricultural development measures, the following decisions were adopted and came into effect in 2004: Joint Ministerial Decision No 560/134186/9.12.2004 “on the setting up and formation of a five-member Central Control Committee for the programme on the long-term set aside of agricultural land and of local committees by the Regional General Secretaries of the Prefectures where the programme is implemented;” Joint Ministerial Decision No 12347/568/20.01.04 “on codes of correct agricultural policy;” Joint Ministerial Decision No 567/125316/29.01.04 “on the implementation of Measure 3.1, Organic Farming, under Priority 3 of the agri-environmental measures of the Rural Development Programming Document 2000-2006;” Joint Ministerial Decision No 130492/586/24.08.04 “on the implementation of Measure 3.2, Organic Livestock Farming, under Priority 3 of agri-environmental measures of the Rural Development Programming Document 2000-2006”. |

Regarding the payment to beneficiaries of animal premiums (beef and sheep meat and goat meat) by the OPEKEPE, the following measures came into effect in 2004: Circular No 47311/07.05.2004 on the procedure for granting aid to beef producers in the 2004 marketing year; Circular No 35030/19.03.2004 on the procedure for granting aid to sheep and goat meat producers in the 2004 marketing year. In the cotton sector, the following decision was put into effect in 2004: Joint Ministerial Decision No 61440/23.09.2004 laying down procedures and controls concerning the Community scheme for payment of aid to cotton producers and guarantee measures, replacing previous Ministerial Decisions and additional measures within the framework of Regulation (EC) No 1591/2001. |

In the olive oil sector, the following decisions were put into effect in 2004: Joint Ministerial Decision No 295530/05.10.2004 “on additional measures for the implementation of the Community aid scheme for olive oil producers;” Ministerial Decision No 322068/28.12.2004 “laying down the documents and procedure for financing work programmes of approved operator organisations in the olive sector, pursuant to Decision No 239789/20.05.2003, as in force for the period 2004/2005.” In the fruit and vegetable processing sector, the following decisions were put into effect in 2004: Joint Ministerial Decision No 322346/28.12.2004 “on the establishment of committees to check the processing of citrus fruits in the 2004-2005 marketing year;” Joint Ministerial Decision No 270060/23.08.2004 “on the delivery for processing of industrial peaches and pears for the period 2004-2005 and beyond;” Joint Ministerial Decision No 252399/03.05.2004 as amended by Decision No 270058/27.08.2004 “on the delivery of citrus fruits to processing units for the marketing year 2004-2005 and beyond”; Joint Ministerial Decision No 252431/21.05.2004 as amended by Decision No 322347/29.12.2004 “on the production and delivery of industrial tomatoes for the period 2004-2005 and beyond.” |

ES | - Royal Decree 2128/2004 of 29 October 2004 regulating the Geographic Information System for agricultural parcels Lays down the rules for the implementation in Spain of the Geographic Information System for agricultural parcels and its use as a management tool in the context of the integrated administration and control system and other area-related aid schemes under the common agricultural policy. - Royal Decree 2320/2004 of 17 December 2004 regulating certain powers in relation to Community economic aid to producer organisations that set up an operational fund Lays down the criteria for determining the paying agency competent for examining and deciding on applications for Community economic aid submitted by producer organisations that set up an operational fund and sets out the principles that should govern the coordination of such aid and the provision of information thereon to the European Commission. - Royal Decree 2352/2004 of 23 December 2004 on the application of conditionality in relation to direct support schemes under the common agricultural policy Lays down the rules for good agricultural and environmental condition that farmers have to observe in order to qualify for direct support schemes under the common agricultural policy, in accordance with Council Regulation (EC) No 1782/2003, and establishes a system for the application of controls and reductions in or exclusion from payments in accordance with Commission Regulation (EC) No 796/2004. - Royal Decree 2353/2004 of 23 December 2004 on certain Community aid schemes for agriculture in the 2005/2006 marketing year and for livestock farming in 2005 Lays down the basic rules applicable to the aid schemes established in Title IV of Council Regulation (EC) No 1782/2003 and the bases for the implementation in Spain of the integrated administration and control system with regard to those schemes. |

FR | See point 1.7. |

HU | Government Decree No. 92/2004. (IV. 27.) Korm. on the manner in which the measures financed from the Guarantee Section of the Agricultural Orientation and Guarantee Fund of the European Union are financially implemented, accounted for and controlled. |

IT | Legislative decree 99 of 29 March 2004 (enacting provisions governing Administrative simplification in agriculture in relation to harmonising and rationalising inspections and food fraud pursuant to section 18, provided that: MIPAF inspectors performing inspections under Regulation 4045/89 have the status of Judicial Police Officers; the AGEA National Payment Agency may use the services of the Central Fraud Prevention Inspectorate of the Ministry of Agricultural Policies in connection with its inspection work; The Regional Governments are vested with powers to impose administrative penalties for breaches of obligations under Commission Regulation 2366/98 (laying down detailed rules for the application of the system of production aid for olive oil). |

LT | Republic of Lithuania Regional Development Act of 20 July 2000 (Official Gazette 2000, No 66-1987, Official Gazette 2002, No 123-5558; Official Gazette 2004, No 116-4324). |

LV | Memorandum of understanding between the State Revenue Service of the Republic of Latvia and Tax and Customs Board of the Republic of Estonia concerning the co-operation in combating financial and other offences under the competencies of the mentioned institutions was signed and entered into force on 8 October 2004 and defines the co-operation between the Financial Police Department of the State Revenue Service of the Republic of Latvia and Offence Investigation Division of the Tax and Customs Board of the Republic of Estonia. |

PL | Art. 13, 13a and 14 of the Act on the Agricultural Market Agency and certain agricultural markets (Journal of Laws No. 42, item 386 as amended), regulate rules for the determination and recovery of debts payable to the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, as well as establishes measures for the deduction from sums payable to beneficiaries by the fund, of wrongly paid undue or excessive amounts received by the debtor. For that purpose, the Act authorises the President of the Agricultural Market Agency to determine, by means of an administrative decision, undue or excessive amounts wrongly paid from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund for Common Agricultural Policy implementation. Where an amount is found undue or paid in excess, then the amount is considered to constitute tax liability and its payment is enforced under administrative law enforcement procedures. An important aspect of the Act concerning the full recovery of undue or excessive sums wrongly paid is that the Act excludes the application of provisions otherwise allowing a tax authority to remit, defer or agree payment by instalments of debts. Where a payment of undue or excessive amounts was effected under a civil law contract, the repayment of these amounts will be claimed in a civil action at court. On 1 May 2004, the Customs Law of 19 March 2004 entered into force (Journal of Laws No. 04.68.622). The Law provides regulations complementary to the Community’s legislation concerning the importation of goods to the Community’s customs area and the exportation of goods from the Community’s customs area, including rules for handling goods covered by the Common Agricultural Policy. Pursuant to Art. 96 of the Customs Law, the Minister of Finance issued a regulation laying down patterns of documents to be used in the trade in goods covered by the Common Agricultural Policy and rules for handling these goods by the Customs Service. The regulation provides patterns of documents to be used in the trade in goods covered by the Common Agricultural Policy and the proper rules applicable to goods covered by the system of refunds. The duties of the special department set forth in the Council Regulation (EEC) No 4045/89 are performed by Bureau for International Treasury Relations[8]. |

PT | In the wine sector: Decree-Law No 212/2004 of 23 August 2004 establishes the institutional structure of the wine sector and regulates the accreditation and protection of the respective labels indicating origin and geographic provenance, as well as their verification, certification and use. It also lays down the regulatory framework governing the bodies that certify wine products; Decree-Law No 213/2004 of 23 August 2004 establishes the regulatory framework applicable to infringements, which relates to non-compliance with the legal provisions on wine products and the production of, trade in, processing and transport of wines and wine products, and the activities developed in this sector. In the field of rural development: Decree-Law No 64/2004 of 22 March 2004 lays down the general rules implementing the Rural Development Plan (RURIS) for the period up to 2006; Decree No 680/2004 of 19 June 2004 lays down the regulations implementing the Rural Development Plan’s initiative for the afforestation of farmland; Decree No 360/2004 of 7 April 2004 concerning the rules for the implementation of the Rural Development Plan’s agri-environmental measures. This Decree amends Decree No 1212/2003 of 7 April 2003. |

Structural actions: New legislative developments contributing to the implementation of Article 280 of the Treaty |

Have there been any significant new legislative developments contributing to the implementation of Article 280 of the Treaty in 2004? Member States are asked to list only national measures and not those which simply transpose Community legislation. If so, please give a brief description below. Please state whether the measures are general or if they apply to a specific Structural Fund and, if so, which one. |

DK | ESF The National Agency for Enterprise and Construction has issued two new orders regarding Act No 254 of 12 April 2000 on the administration of grants from the European Social Fund which entered into force on 1 January 2005: Order No 1327 of 14 December 2004 concerning responsibilities and the division of powers, etc., in connection with the administration of grants from the European Social Fund and Order No 1328 of 14 December 2004 on grants from the European Social Fund. These two Orders replace Order No 132 of 1 March 2001 concerning responsibilities and the division of powers, etc., in connection with the administration of grants from the European Social Fund and Order No 133 of 1 March 2001 on grants from the European Social Fund. The amendments relating to monitoring and control clarify the project administration’s responsibilities for reporting irregularities under Commission Regulation (EC) No 1681/94. In October 2004 the National Agency for Enterprise and Construction issued guidelines to all project administrators regarding the forwarding of quarterly reports to OLAF. |

EE | Structural Assistance Act Regulation of the Minister of Finance “Procedure for Financial Reporting of Implementation of Structural Assistance” Regulation of the Minister of Finance “Rules on Recovery and Repayment of Structural Assistance” Regulation of the Minister of Finance “Procedure for Submission of Structural Assistance Audit and Declaration on the Winding-Up of Assistance” |

EL | Circular of 8 April 2004 on the implementation of the National Fiscal Corrections System in accordance with the provisions of Law 2860/2000 and Joint Ministerial Decision No 907/0052/2.7.2003. The aim of the Circular is to clarify and standardise the procedures to be applied by all the parties involved in completing the control procedure and following up the outcome. The procedures include issuing decisions, establishing undue or unlawful payments, recovery, return to the state treasury and fiscal corrections following controls by Community control bodies; Amendment No 2/5709/0004/30.1.2004: “Amendment of Ministerial Decision No 2/4248/0004/24.1.2001 on the distribution of tasks among the Directorates for (a) Programming and Controls and (b) Studies and Evaluation of the Ministry of Economic Affairs and Finance (General State Accounting Office).” Under the above amendment the tasks of the two Directorates have been redistributed by section, and two new sections have been set up to deal with the programming and control of the Cohesion Fund and Community Initiatives respectively; Joint Ministerial decision No 320752/17040/15.12.04 “on the recovery of unduly or unlawfully paid amounts from national resources or resources of the European Union with respect to implementation of programmes under the Community Support Framework for the 2000-2006 programming period;” Decision No 3824/9.9.2004 of the Minister of Rural Development & Food: “Amendment of and supplement to Decision No 430/03 laying down detailed implementing rules for the Leader Plus Community Initiative, as amended by Decisions Nos 1222/03 and 4993/03.” |

FI | The Act on the Administration of Structural Fund Programmes at National Level (1353/1999, amendments 1286/2000, 115/2003 and 1033/2003) was amended by Law 590/2004 as follows: Section 35 of the Act on the Administration of Structural Fund Programmes at National Level was amended by adding paragraph 2 regarding the delegation of powers in the administrative sector of the Ministry of Social Affairs and Health. At the same time the new paragraph 1 on the transfer of powers in the administrative sector of the Ministry of Education was amended in such a way that the provisions specify those authorities to which the Ministry of Education may transfer some of its powers. Furthermore, the provision stipulates that transfer of powers is to be enacted by a Decree of the Ministry. The amendment came into force on 1 July 2004. Act on the Regional Self-Government Experiment in Kainuu (343/2003) The province takes the decisions allocating EC structural fund resources and the corresponding national funding to their intended uses as well as allocating the national development funding (which is important for the province and involves expediency consideration) for the uses stipulated in the legislation. The central government bodies that used to decide on the allocation of the funds in question deal with the release of funds in accordance with the decisions of the province. In the State budget, the funding significant for the development of Kainuu is brought together under a single heading. The law came into force on 1 June 2003 and the self-government experiment started on 1 January 2005. Law on the Services for the Development of Skills in SMEs (971/2004) The law governs the funding contribution of enterprises in those services for the development of skills in SMEs that are based on a mandate by the Ministry of Trade or an Employmen