Decision of the European Central Bank of 7 October 1999 on fraud prevention (ECB/1999/5)
Date: 1999-10-07
Institutions: European Central Bank
Subjects: EU control, European Central Bank, committee of inquiry, corruption, fraud, operation of the Institutions

L 291/36

EN

Official Journal of the European Communities

13. 11. 1999

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 7 October 1999

on fraud prevention

(ECB/1999/5)

(1999/726/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL
BANK,

between the ECB and the institutions of the European
Communities;

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank (hereinafter referred
to as the ‘Statute’) and in particular to Article 12.3 thereof;

Having regard to the proposal of the Executive Board of the
European Central Bank (ECB);

Having regard to the opinion of the Staff Committee of the
ECB;

(1) Whereas the ECB, together with the institutions of the
European Communities and the Member States, attaches
great importance to the protection of the Communities'
financial
interests and to efforts to combat fraud and
other illegal activities detrimental to the Communities'
financial

interests;

(2) Whereas the Cologne European Council in June 1999
considered it eminently desirable that the ECB should
join the institutions of the European Communities in
efforts to combat fraud within the European Union;

(3) Whereas the ECB attaches great

importance to the
protection of its own financial interests and to efforts to
combat fraud and other illegal activities detrimental to
its financial

interests;

(4) Whereas all available means must be fully deployed to
attain these objectives, notably in the context of investig-
ative duties devolving upon the ECB and the institutions
of the European Communities, while maintaining the
responsibilities
current distribution and balance of

(5) Whereas the institutions of the European Communities
and the Member States have taken action to combat
fraud and other illegal activities detrimental
to the
Communities' financial interests on the basis of Article
280 of the Treaty establishing the European Community
(hereinafter referred to as the ‘Treaty’);

(6) Whereas the independence of the ECB is provided for by
the Treaty and the Statute; whereas, in accordance with
the Treaty and the Statute, the ECB has its own budget
and its own financial resources separate from those of
the European Communities;

(7) Whereas, to reinforce the means available for combating
fraud, by Decision 1999/352/EC, ECSC, Euratom (1), the
Commission has established among its own departments
a European Anti-Fraud Office (OLAF) with responsibility
for conducting administrative investigations to this end;

(8) Whereas combating fraud and other illegal activities
detrimental to the financial interests of the ECB is a core
function of
Internal Audit and
whereas that Directorate is responsible for conducting
administrative investigations within the ECB to this end;

the Directorate for

(9) Whereas combating fraud and other illegal activities
within the ECB should be understood as covering similar
activities as defined by the European Parliament, the
Council of the European Union and the Commission of
the European Communities in the first subparagraph of
paragraph 1 of the Interinstitutional Agreement of 25
May 1999 (2);

(10) Whereas, to enhance and reinforce the independence of
the activities of the Directorate for Internal Audit in
combating fraud and other illegal activities detrimental
to the financial
interests of the ECB, this Directorate
should report to an anti-fraud committee made up of
highly qualified outside independent persons on these
issues,

(1) OJ L 136, 31.5.1999, p. 20.
(2) OJ L 136, 31.5.1999, p. 15.

13. 11. 1999

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Official Journal of the European Communities

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HAS DECIDED AS FOLLOWS:

Article 1

ECB anti-fraud committee

1.
An anti-fraud committee shall be established in order to
reinforce the independence of the Directorate for Internal Audit
in its activities and reporting concerning all issues related to the
prevention and detection of fraud and other illegal activities
detrimental to the financial interests of the ECB and compli-
ance with relevant internal standards and/or codes of conduct
of the ECB. The composition and powers of the anti-fraud
committee shall be laid down by this Article.

The anti-fraud committee shall be responsible for both
2.
the activities
the regular monitoring and the discharge of
referred to in paragraph 1 within the ECB by the Directorate
for Internal Audit.

The anti-fraud committee shall be composed of three
3.
outside independent persons who possess outstanding quali-
fications relevant to the activities of the anti-fraud committee.
They shall be appointed by a decision of
the Governing
Council, which shall be published in the Official Journal of the
European Communities.

The term of office of members of

4.
the anti-fraud
committee shall be three years and this shall be renewable only
once. On expiry of their term of office members shall remain
in office until their appointments are renewed or until they are
replaced, as the case may be.

5.
In carrying out their duties, the members of the anti-fraud
committee shall neither seek nor take instructions from the
decision-making bodies of the ECB, from institutions or bodies
of the European Communities, from any government or from
any other institution or body.

6.
The anti-fraud committee shall appoint its chairperson
and adopt its own rules of procedure. It shall take its decisions
by a majority of its members.

shall

Internal Audit

The Director of

forward a
7.
programme of its activities referred to in paragraph 1 above to
the anti-fraud committee each year. The Directorate for Internal
Audit shall keep the anti-fraud committee regularly informed
in particular its investigations, the results
of these activities,
thereof and the actions taken in that connection. The anti-fraud
committee may, where appropriate, instruct the Directorate for
Internal Audit with regard to its performance of these activities.

In the event that an investigation has been in progress for more
than six months, the Director of Internal Audit shall inform the
anti-fraud committee of the reasons for it not yet having been
possible to wind up the investigation, and also of the expected
date of completion. In such a case the anti-fraud committee
shall

inform the Governing Council.

The Director of
inform the anti-fraud
committee of cases in which the management of the ECB or
the decision-making bodies of the ECB has failed to act on

Internal Audit shall

recommendations regarding an issue of fraud prevention and
detection or regarding compliance with relevant internal stand-
ards and/or codes of conduct of the ECB. The Director of
Internal Audit shall inform the anti-fraud committee of cases in
which information needs to be forwarded to the judicial
authorities of a Member State.

The Anti-Fraud Committee shall present at

8.
least one
report a year on its activities to the Governing Council, the
external auditors of the ECB and the European Court of Aud-
itors. The Committee shall submit reports to the Governing
Council, the external auditors of the ECB and the European
Court of Auditors on the results of the Directorate for Internal
Audit's investigations and the action taken in their respect.

The anti-fraud committee shall be responsible for the
9.
relations with the Supervisory Committee of the European
Anti-Fraud Office (OLAF) referred to in Article 11 of Regula-
tion (EC) No 1073/1999 of the European Parliament and of the
Council (1). These relations shall follow the principles estab-
lished by a decision of the ECB.

The anti-fraud committee may inform the competent
10.
national
judicial authority where reasonable evidence shows
that there may have been a breach of national criminal law.

Article 2

Responsibility for reporting on fraud issues

The Directorate for Internal Audit is, in accordance with this
Decision and the procedures in force within the ECB, respons-
ible for investigating and reporting on all issues related to the
prevention and detection of fraud and other illegal activities
detrimental to the financial interests of the ECB and on compli-
ance with relevant internal standards and/or codes of conduct
of the ECB.

Article 3

Independence

In order to ensure that the Directorate for Internal Audit is able
to investigate and report on all issues relating to fraud preven-
tion and detection effectively and with the required level of
independence, the Director of Internal Audit shall report to the
anti-fraud committee referred to in Article 1 of this Decision
on fraud issues.

Article 4

Information to investigated persons

Where possible personal
implications emerge from a fraud
investigation, the Director of Internal Audit shall inform the
persons concerned rapidly as long as this would not be
harmful to the investigation. In any event, conclusions referring
to persons by name may not be drawn before the persons
concerned have been given the opportunity to express their
views on all the facts which concern them.

If, following an investigation, no case can be made against the
person against whom allegations have been made, the invest-
igations concerning him/her shall be closed, with no further
action being taken, by a decision of the Director of Internal
Audit, who shall

inform the person concerned in writing.

(1) OJ L 136, 31.5.1999, p. 1.

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Official Journal of the European Communities

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Article 5

Conduct of activities

him/her committed by the Directorate for Internal Audit as
part of the activities referred to in this Decision.

The activities referred to in this Decision shall be carried out
subject to both the rules of the Treaties, in particular Article 6
of the Treaty on European Union, and the Protocol on the
privileges and immunities of the European Communities with
due regard to the Conditions of employment for staff of the
European Central Bank and the Conditions of short-term
employment.

Staff of the ECB shall, and any other person may, inform the
anti-fraud committee or the Directorate for Internal Audit of
any fraud or illegal activities detrimental to the financial inter-
ests of the ECB. Staff of the ECB must in no way suffer
inequitable or discriminatory treatment as a result of having
contributed to the activities of the anti-fraud committee or the
Directorate for Internal Audit referred to in this Decision.

Article 6

Complaints

Article 7

Confidentiality

Any information obtained in the course of fraud investigations,
whatever its form, shall be subject to professional secrecy as
laid down in Article 38 of the Statute. The members of the
anti-fraud committee shall be obliged to adhere to this profes-
sional secrecy.

Article 8

Publication and effective date

This Decision shall be published in the Official Journal of the
European Communities.

This Decision shall take effect upon its publication.

Done at Frankfurt am Main, 7 October 1999.

to the
Any member of
Executive Board or the anti-fraud committee a complaint in
respect of an act or omission having an adverse effect on

the ECB may submit

the staff of

The President of the ECB

Willem F. DUISENBERG