European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council on mutual administrative assistance for the protection of the financial interests of the Community against fraud and any other illegal activities (COM(2004)0509 - C6-0125/2004 - 2004/0172(COD))
Date: 2005-06-23
Institutions: European Parliament
Subjects: VAT, VAT resource, administrative cooperation, exchange of information, fraud, fraud against the EU

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— having been consulted by the Council pursuant to Article 252 and Article 99(5) of the EC Treaty

(C6-0192/2005),

— having regard to Rule 60 of its Rules of Procedure,

— having regard to the recommendation for second reading of the Committee on Economic and Monetary

Thursday 23 June 2005

Affairs (A6-0204/2005),

Approves the common position;

Instructs its President to forward its position to the Council and Commission.

1.

2.

P6_TA(2005)0255

Protection of the financial interests of the Community ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council on mutual administrative assistance for the protection of the financial
interests of the Community against fraud and any other illegal activities (COM(2004)0509 —
C6-0125/2004 — 2004/0172(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal to the European Parliament and the Council (COM(2004)

0509) (1),

— having regard to Article 251(2) and Article 280(4) of the EC Treaty, pursuant to which the Commission

submitted the proposal to Parliament (C6-0125/2004),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Budgetary Control (A6-0156/2005),

1.

Approves the Commission proposal as amended;

Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal

2.
substantially or replace it with another text;

3.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

P6_TC1-COD(2004)0172

Position of the European Parliament adopted at first reading on 23 June 2005 with a view to the
adoption of Regulation (EC) No …/2005 of the European Parliament and of the Council on mutual
administrative assistance for the protection of the financial interests of the Community against
fraud and any other illegal activities

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 280(4) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Court of Auditors,

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Having regard to the opinion of the European Data Protection Supervisor (1),

Acting in accordance with the procedure laid down in Article 251 of the Treaty (2),

Whereas:

(1) The Community and the Member States attach great importance to the protection of the financial
interests of the Community and to the fight against fraud and any other illegal activities affecting
those interests.

(2) The Community framework on mutual assistance should permit close and regular cooperation between
the competent authorities of the Member States as well as between the latter and the Commission, in
order to protect the Community's financial interests in all areas of Community financial resources and
expenditure.

(3) The provisions of this Regulation should not affect the conduct of investigations by the European Anti-
Fraud Office through the use of investigative powers and in compliance with the safeguards provided
for in Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999
concerning investigations conducted by the European Anti-Fraud Office (OLAF) (3). The scope of this
Regulation should be limited to certain forms of assistance, exchange of information and coordination
which may precede, follow or accompany OLAF's investigative activities.

(4) The introduction of new Community measures should not be such as to affect the application of
national criminal law and of rules on mutual assistance in criminal matters or the national adminis-
tration of justice.

(5) The fight against transnational fraud and any other illegal activities affecting the financial interests of
the Community demands enhanced coordination at Community level as well as multidisciplinary coop-
eration with the Member States' authorities in the field of fraud and any other illegal activities, which
are in many cases related to structures of organised crime and are detrimental to the Community's
financial interests. This Regulation should further permit cooperation between all the competent auth-
orities of the Member States, and between the latter and the Commission.

(6) The provisions of this Regulation should not affect Community legislation which provides for more
specific or extensive cooperation between the Member States and the latter and the Commission, such
as Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the adminis-
trative authorities of the Member States and cooperation between the latter and the Commission to
ensure the correct application of the law on customs and agricultural matters (4), or Council Regulation
(EC) No 1798/2003 of 7 October 2003 on administrative cooperation in the field of value added tax
and repealing Regulation (EEC) No 218/92 (5).

(7) The exchange of information is a key element in the fight against fraud and any other illegal activities
affecting the financial interests of the Community. Information provided by the Member States to the
Commission should be used by the Commission to form a comprehensive view on Europe-wide fraud
and other illegal activities and to communicate that view to the Member States.

(8)

Fraud and any other illegal activities affecting the financial interests of the Community, in particular in
transnational cases which often involve organised international fraud schemes in two or more Member
States, can be prevented and fought most effectively if information of an operational, statistical or
general nature is analysed and subjected to risk analysis at Community level, using the intelligence
and risk-analysis capacity of the Commission in general and OLAF in particular.

(9) The fight against fraud and any other illegal activities affecting the financial interests of the Community
also necessitates a coherent follow-up. Information gathered or transferred by the Commission should
therefore be admissible as evidence in administrative and judicial proceedings.

(1) OJ C 301, 7.12.2004, p. 4.
(2) Position of the European Parliament of 23 June 2005.
(3) OJ L 136, 31.5.1999, p. 1.
(4) OJ L 82, 22.3.1997, p. 1. Regulation as amended by Regulation (EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36).
(5) OJ L 264, 15.10.2003, p. 1. Regulation as amended by Regulation (EC) No 885/2004 (OJ L 168, 1.5.2004, p. 1).

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(10) In the interest of successful cooperation between the competent authorities of the Member States and
the Commission, the exchange of information should be organised in accordance with the rules of
confidentiality where information is subject to professional secrecy, while ensuring that personal data
processed pursuant to the new provisions enjoys proper data protection.

(11) Due consideration should be given to the data protection rules applying to the Community institutions
set out in Article 286 of the Treaty and Regulation (EC) No 45/2001 of the European Parliament and
of the Council of 18 December 2000 on the protection of individuals with regard to the processing of
personal data by the Community institutions and bodies and on the free movement of such data (1), as
well as those applying to the Member States on the basis of Directive 95/46/EC of the European
Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to
the processing of personal data and on the free movement of such data (2).

(12) The measures necessary for the implementation of this Regulation should be adopted in accordance
with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of
implementing powers conferred on the Commission (3).

(13) Since the objectives of the action to be taken, namely the fight against fraud and any other illegal
activities affecting the financial
interests of the Community, cannot be sufficiently achieved by the
Member States and can therefore, by reason of the scale and effects of the action, be better achieved
at Community level, the Community may adopt measures, in accordance with the principle of sub-
sidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set
out in that Article, this Regulation does not go beyond what is necessary in order to achieve those
objectives.

(14) This Regulation respects the fundamental rights and observes the principles recognised in particular by

the Charter of Fundamental Rights of the European Union,

HAVE ADOPTED THIS REGULATION:

TITLE I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation establishes the legal framework for mutual administrative cooperation and exchange of
information between the competent authorities of the Member States and between those authorities and
the Commission,
interests of the
in order to ensure equivalent and effective protection of the financial
Community against fraud and any other illegal activities.

Article 2

Scope

This Regulation shall apply in cases of fraud and any other illegal activities affecting the financial

1.
interests of the Community which are of particular relevance at Community level.

This shall also include cases in which the illegal activities take place, in their entirety or in part, in states
outside the Community.

The competent authorities of the Member States may also exchange information and provide assistance
pursuant to this Regulation in other situations where they consider such exchange of information and
assistance at Community level to be necessary in countering fraud and any other illegal activities affecting
the financial interests of the Community.

(1) OJ L 8, 12.1.2001, p. 1.
(2) OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).
(3) OJ L 184, 17.7.1999, p. 23.

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2.
The provisions of this Regulation shall not apply to the extent that Community legislation provides for
more specific cooperation between the Member States and between the latter and the Commission, or
provides for broader access to information by the Commission.

In particular, this Regulation shall not affect the application of Regulation (EC) No 515/97 and cooperation
between Member States under Regulation (EC) No 1798/2003.

3.

This Regulation shall not affect the application of Regulation (EC) No 1073/1999.

This Regulation shall not affect the application of national criminal law or of rules on mutual assist-

4.
ance in criminal matters or the national administration of justice.

5.
The obligation to give assistance provided for in this Regulation shall not cover the provision of
information or documents obtained by the competent administrative authorities acting with the authori-
sation or at the request of the judicial authority.

However, in the event of requests for assistance, such information or documents shall be provided if the
judicial authority which is to be consulted on the matter gives its consent.

Article 3

Definitions

For the purposes of this Regulation the following definitions shall apply:

1)

‘irregularity’ means fraud and any other illegal activities with particular relevance at Community level,
affecting the financial interests of the Community, and in particular:

(a)

any infringement of a provision of Community law resulting from an act or omission by an
economic operator, including breaches of contracts arising under provisions of Community law
and in implementation of both direct and indirect Community financing, which has, or would
have, the effect of prejudicing the general budget of the Community or budgets managed by it,
either by reducing or losing revenue accruing from own resources collected directly on behalf of
the Community, or by an unjustified item of expenditure;

(b) any infringement of legislation relating to value added tax (VAT) as referred to in Directive 77/388/
EEC (1), which has or would have the effect of diminishing the Communities' own resources as
referred to in Regulation (EEC, Euratom) No 1553/89 (2);

(c) money laundering, within the meaning of Article 1(c) of Directive 91/308/EEC (3), in relation to the

proceeds of an infringement as referred to in points (a) and (b);

2)

‘irregularities of particular relevance at Community level’ means irregularities:

(a) which have or might have ramifications in other Member States, or where there are tangible links
with operations carried out in other Member States or in cases of Community expenditure (direct
and indirect) where no specific rules on mutual assistance apply; and

(b) which were detected by operations — regardless of whether they were discovered in single or
multiple operations — and which are estimated to cause overall fiscal damage in the Member
States concerned in excess of EUR 500 000 in the area of VAT, or to cause damage to the Com-
munity's financial interests of EUR 100 000 or more in the other cases covered by this Regulation;
in the case of money laundering the threshold applies to the predicate offence;

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to
turnover taxes — Common system of value added tax: uniform basis of assessment (OJ L 145, 13.6.1977, p. 1). Directive as
last amended by Directive 2004/66/EC (OJ L 168, 1.5.2004, p. 35).

(2) Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989 on the definitive uniform arrangements for the collection of
own resources accruing from value added tax (OJ L 155, 7.6.1989, p. 9). Regulation as amended by Regulation (EC) No 807/
2003 (OJ L 122, 16.5.2003, p. 36).

(3) Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money
laundering (OJ L 166, 28.6.1991, p. 77). Directive as amended by Directive 2001/97/EC of the European Parliament and of
the Council (OJ L 344, 28.12.2001, p. 76).

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3)

4)

5)

6)

7)

‘legislation relating to VAT’ means all the Community provisions governing value added tax and the
laws and regulations adopted by the Member States in order to comply with those Community provi-
sions;

‘applicant authority’ means a competent authority which makes a request for assistance;

‘requested authority’ means a competent authority to which a request for assistance is made;

‘administrative enquiries’ means all controls, checks and other action undertaken by the competent
authorities in the performance of their duties with a view to establishing whether irregularities have
been committed, excluding action taken at the request of, or under a direct mandate from, a judicial
authority;

information’ means information on suspicious transactions received by the competent
‘financial
national contact points pursuant to Directive 91/308/EEC and other information that is appropriate
for tracing the financial transactions linked to irregularities covered by this Regulation;

8)

‘competent authorities’ means the national or Community authorities referred to in Article 4(1).

The thresholds set out in point (2)(b) may be increased in accordance with the procedure referred to in
Article 25(2).

Article 4

Competent authorities

Cooperation under this Regulation shall include the following competent authorities, acting within the

1.
scope of their respective powers:

(a)

the Member States' authorities which are:

(i)

(ii)

directly responsible for the management of financial funds originating from the Community budget
and designated as such by relevant Community law and national law provisions; or

responsible under the applicable national provisions of administrative law for the prevention of
and the fight against fraud and any other illegal activities affecting the financial interests of the
Community; or

(iii) the competent authorities listed in Regulation (EC) No 1798/2003, the respective central liaison
offices and liaison departments designated pursuant to that Regulation, other tax investigation
authorities competent
to investigate VAT fraud or the competent authorities referred to in
Directive 92/12/EEC (1) in so far as information gathered may afford evidence of VAT fraud — this
shall not preclude direct contacts, exchanges of information or cooperation between the different
Member States' officials and the authorities mentioned in this Article — or

(iv) set up as ‘financial intelligence units’ by the Member States pursuant to Decision 2000/642/JHA (2)

to collect and analyse information received under the provisions of Directive 91/308/EEC.

(b)

the Commission, including OLAF.

2. Member States shall take the necessary measures to ensure the exchange of information between their
competent authorities, regardless of their competencies and internal status, and between the latter and the
Commission.

The Commission shall keep a list of all the authorities taking part in cooperation under this Regu-

3.
lation. The list shall be constantly updated and made accessible on the internet.

(1) Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the
holding, movement and monitoring of such products (OJ L 76, 23.3.1992, p. 1). Directive as last amended by Directive 2004/
106/EC (OJ L 359, 4.12.2004, p. 30).

(2) Council Decision 2000/642/JHA of 17 October 2000 concerning arrangements for cooperation between financial intelligence

units of the Member States in respect of exchanging information (OJ L 271, 24.10.2000, p. 4).

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TITLE II

COOPERATION DUTIES

Chapter 1

Mutual administrative assistance and exchange of information

Section 1

Assistance on request

Article 5

Assistance on request

1.
The competent authorities shall assist each other on request to prevent and detect irregularities. At the
request of the applicant authority, the requested authority shall, as far as is required to satisfy the purposes
of the request and in accordance with the objectives of this Regulation, transmit to the applicant authority
all information of relevance for the prevention and detection of irregularities. The information to be trans-
include information on the operations constituting the irregularity as well as financial
mitted shall
information, both on the underlying operations and on the natural or legal persons involved.

2.
In order to obtain the information sought, the requested authority or the administrative authority to
which it has recourse shall proceed as though acting on its own account or at the request of another
authority in its own Member State.

3.
The requested authority shall make available any information in its possession or obtained by it con-
cerning operations or transactions, detected or planned, which constitute or which appear to the applicant
authority to constitute irregularities or, where applicable, concerning findings of a special watch carried out
pursuant to Article 6.

It shall supply the applicant authority with any attestation, document or certified true copy of a document
in its possession or obtained by it. However, original documents and items shall be provided only where this
is not contrary to the legislation in force in the Member State in which the requested authority is based.

Requests for assistance and information exchange shall be accompanied by a brief statement of the

4.
facts known by the applicant authority.

If the applicant authority addresses its request to an authority which is not competent for the assist-

5.
ance requested that authority shall forward the request immediately to the competent authority.

Article 6

Special watch

At the request of the applicant authority, the requested authority shall as far as possible keep a special watch
or arrange for a special watch to be kept within its operational area:

(a) on persons, and more particularly their movements, where there are reasonable grounds for believing

that they are committing irregularities;

(b) on places where goods are stored in a way that gives grounds to suspect that they are intended to

supply operations which constitute irregularities;

(c) on the movements of goods indicated as being the object of potential irregularities;

(d) on means of transport and financial transactions, where there are reasonable grounds for believing that

they are being used to commit irregularities.

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Article 7

Administrative enquiries on request

Thursday 23 June 2005

At the request of

the applicant authority the requested authority shall carry out administrative
1.
enquiries concerning operations which constitute or which appear to the applicant authority to constitute
an irregularity, or shall arrange to have such enquiries carried out.

The requested authority or the administrative authority to which it has recourse shall conduct these adminis-
trative enquiries as though acting on its own account or at the request of another authority in its own
Member State. It shall communicate the results of the enquiry to the applicant authority.

2.
By agreement between the applicant authority and the requested authority, officials appointed by the
applicant authority may be present at the administrative enquiries referred to in paragraph 1. The enquiries
shall at all times be carried out by officials of the requested authority.

Officials of the applicant authority may not, on their own initiative, assume powers of inspection conferred
on officials of the requested authority; however, they shall have access to the same premises and the same
documents as the latter, through officials of the requested Member State as intermediaries and for the sole
purpose of the administrative enquiries being carried out.

3.
In so far as national provisions on criminal proceedings reserve certain acts for officials specifically
designated by national law, the officials of the applicant authority shall not take part in such acts. In no
circumstances shall they participate in searches of premises or the formal questioning of persons under
criminal law.

Article 8

Activity of officials in another Member State
or on mission in a Member State

By agreement between the applicant authority and the requested authority and in accordance with the
arrangements laid down by the latter, officials duly authorised by the applicant authority may be permitted
to obtain information on irregularities from the offices where the administrative authorities of the Member
State in which the requested authority is based exercise their functions.

The information concerned must be needed by the applicant authority and be derived from documentation
to which the officials of those offices have access.

The officials of the applicant authority shall be authorised to take copies of that documentation.

Article 9

Written authority of officials

Officials of the applicant authority who are present in another Member State or on mission in a Member
State in accordance with the Articles 7 and 8 must at all times be able to produce written authority stating
their identity and their official functions.

Article 10

Time-limit for providing assistance and information

1.
The requested authority shall provide the assistance and information referred to in Articles 5 and 7 as
quickly as possible and not later than six weeks following receipt of the request. However, where the
requested authority is already in possession of that information the time-limit shall be four weeks.

In particular cases, time-limits different from the ones provided for in paragraph 1 may be agreed

2.
between the requested and the applicant authorities.

3. Where the requested authority is unable to respond to a request by the deadline, it shall inform the
applicant authority forthwith of the reasons for its failure to do so and shall state when it will be able to
respond.

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Article 11

Data concerning value added tax

For the purpose of providing operational and technical assistance and where necessary to help com-
1.
petent authorities of the Member States to detect and investigate irregularities within the meaning of point
(1)(b) of the first paragraph of Article 3 of this Regulation, Member States shall without delay communi-
cate to the Commission the following information from their records stored in national databases as
referred to in Regulation (EC) No 1798/2003:

— VAT identification numbers issued by Member States receiving the information;

— the total value of intra-Community supplies of goods to persons holding a VAT identification
number by all operators identified for the purposes of VAT in the Member State providing the
information.

The detailed rules concerning this access, including rules on confidentiality and data protection as well as on
the use of information obtained from the Member States' records, shall be laid down in accordance with the
procedure referred to in Article 25(2).

2.
In so far as it may afford evidence of irregularities within the meaning of point (1)(b) of the first
paragraph of Article 3, Member States' authorities shall communicate to the Commission information
gathered on the basis of Directive 92/12/EEC.

Section 2

Spontaneous assistance

Article 12

Provision of information
concerning operations or transactions

1.
The competent authorities of the Member States shall provide the Commission, without prior request,
with any relevant information in respect of operations or transactions which constitute or which appear to
constitute irregularities.

Acting with the help of appropriate technological support,

2.
the Commission shall analyse the
information provided and shall provide the Member States with the corresponding analytical results, with
a view to technical and operational assistance in the detection and investigation of irregularities. Where the
Commission considers that irregularities have taken place in one or more Member States, it shall inform the
Member States concerned thereof.

3.
The obligation to exchange financial information spontaneously between the Member States and the
Commission shall apply regardless of whether the transaction is carried out in a single operation or in
several operations which seem to be linked.

Rules on confidentiality and data protection shall be adopted in accordance with the procedure ref-

4.
erred to in Article 25(2).

Article 13

Special watch without request

Where they consider it useful for the protection of the financial interests of the Community against irregu-
larities, competent authorities of the Member States shall:

(a) keep or arrange for a special watch as referred to in Article 6;

(b) communicate to the Commission and where appropriate to the competent authorities of the Member
States concerned any information in their possession, and in particular reports and other documents or
certified true copies or extracts thereof concerning operations which constitute or which appear to
them to constitute acts affecting the financial interests of the Community.

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Article 14

Communication of general information

The competent authorities of the Member States shall communicate general information to the Com-
1.
mission on new ways, means, methods and practices of committing irregularities as well as on the detection
and prevention of irregularities, which might contribute to the fraud-proofing of relevant legislation, as soon
as such information is available to them.

2.
The Commission shall communicate to the competent authorities in each Member State, as soon as it
becomes available, any information that would enable them to prevent irregularities and to enforce relevant
legislation.

Chapter 2

Use of information

Article 15

Use as evidence

Findings, certificates, information, documents, certified true copies and any intelligence communicated to a
competent authority in the course of assistance provided for in Articles 5, 6, 7 and 12 shall constitute
admissible evidence in administrative or judicial proceedings in any Member State, in the same way as if
they had been obtained in the Member State where the proceedings take place.

Article 16

Exchange of information

Information obtained under this Regulation as well as under other Community provisions may be
exchanged by the Commission with other competent authorities in accordance with and for the purpose
of this Regulation, to the extent to which such exchange is compatible with the Community provisions
under which the information has been obtained.

Article 17

Follow-up

The competent authorities of the Member States shall inform the Commission of any relevant update of the
information communicated and the administrative enquiries conducted under this Regulation, and especially
of the administrative or judicial proceedings instituted, in so far as this is compatible with national criminal
law.

Article 18

Confidentiality rules and data protection

1.
Information communicated or acquired in any form under this Regulation shall be covered by pro-
fessional secrecy and protected in the same way as similar information is protected by the national legis-
lation of the Member State that received it and by the corresponding provisions applicable to the Commun-
ity institutions and bodies.

Such information may not be communicated to persons or authorities other than those within the Com-
munity institutions and bodies or in the Member States whose functions require them to know it nor may it
be used for purposes other than to ensure effective protection of the financial interests of the Community.

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2.
The Commission and the Member States shall ensure, when processing personal data pursuant to this
Regulation, that the Community and national provisions on the protection of data, in particular those laid
down by Directive 95/46/EC and, where applicable, by Regulation (EC) No 45/2001, are complied with.

The European Data Protection Supervisor shall be consulted before adoption of the implementing rules
provided for in the second subparagraph of Article 11(1), Article 12(4) and Article 24.

Article 19

Relations with third countries

1.
Information obtained by a Member State or the Commission from a third country and falling within
the scope of this Regulation shall be communicated to the competent authorities of a Member State or to
the Commission if it might enable them to prevent or counter irregularities.

2.
Provided that the third country concerned has given a legal undertaking to provide the assistance
required to gather proof of the irregular nature of operations which appear to constitute an irregularity,
information obtained under this Regulation may be communicated to that third country as part of a con-
certed action, subject to the agreement of the competent authorities supplying the information, in accord-
ance with their national provisions on the protection of personal data, with Articles 25 and 26 of Directive
95/46/EC, and where applicable with Article 9 of Regulation (EC) No 45/2001.

3.

In this context, OLAF shall have a coordinating role.

Article 20

Risk analysis by the Commission

The Commission may use any information of a general or operational nature communicated by Member
States under this Regulation to perform both strategic and tactical risk assessments, with the use of appro-
priate information technology support, leading to the production of intelligence-based reports and alerts in
order to raise the awareness of identified threats and thus enhance the effectiveness of appropriate oper-
ational responses by the competent national authorities and the Commission, subject to the limits of the
latter's competence.

Article 21

Amendment of existing legal provisions

The Commission shall submit the proposals required to amend Regulation (EC) No 1798/2003 and
Decision 2000/642/JHA.

TITLE III

RECOVERY

Article 22

Strengthening the possibility of recovering unlawfully obtained
gains and obligation to provide information

1.
For the purpose of facilitating the recovery of gains resulting from irregularities, as defined in point
1 of the first paragraph of Article 3, institutions and persons, as referred to in Article 2a of Directive 91/
308/EEC, shall provide the competent authorities of the Member States, upon request and in accordance
with paragraph 2, with all relevant financial
information enabling those authorities to apply the
measures provided for in Article 23.

2.
Requests as referred to in paragraph 1 shall be accompanied by a statement outlining relevant facts
known to the authority making the request or to the Commission, and the grounds for serious suspicion.
The credit institutions and/or financial institutions concerned shall ensure that this information remains
confidential.

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Article 23

Means of recovery

1.
In order to ensure effective recovery, Member States shall seize and freeze, where necessary after
obtaining authorisation from a judicial authority, the proceeds of unlawfully obtained advantages affect-
ing the Community's financial interests. This provision shall apply to the proceeds of any irregularity
involving sums of more than EUR 50 000 or property, as referred to in Article 1, point (D), of
Directive 91/308/EEC, the value of which corresponds to such proceeds.

2.
The measures referred to in paragraph 1 may be imposed on a natural or legal person who has
committed or is suspected of having committed the irregularity, or who has contributed to or is suspected
of having contributed to the commission of the irregularity. These measures may also be applied to a
natural or legal person who benefits from the proceeds of the irregularity.

TITLE IV

FINAL PROVISIONS

Article 24

Implementing rules

Detailed implementing rules concerning the mutual assistance and exchange of information provided for in
Chapter 1 of Title II shall be adopted in accordance with the procedure referred to in Article 25(2).

In addition to the matters referred to in the second subparagraph of Article 11(1) and in Article 12(4) those
rules may cover, in particular:

(a)

irregularities within the meaning of point (1)(b) of the first paragraph of Article 3;

(b)

irregularities within the meaning of point (1)(c) of the first paragraph of Article 3;

(c)

irregularities in the structural funds sector.

Article 25

Committee

The Commission shall be assisted by the Committee set up under Article 43 of Regulation (EC)

1.
No 515/97.

2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply,
having regard to the provisions of Article 8 thereof.

The period referred to in Article 5(6) of Decision 1999/468/EC shall be three months.

Article 26

Evaluation report

Every three years after the date of entry into force of this Regulation, the Commission shall report to the
European Parliament, the Court of Auditors and the Council on the application of this Regulation.

C 133 E/116

Official Journal of the European Union

EN

8.6.2006

Thursday 23 June 2005

Article 27

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official
Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at …, on …

For the European Parliament
The President

For the Council
The President

P6_TA(2005)0256

Access to Community external assistance ***I

European Parliament legislative resolution on the proposal for a regulation of the European Parlia-
ment and of the Council on the access to Community External Assistance (COM(2004)0313 —
C6-0032/2004 — 2004/0099(COD))

(Codecision procedure: first reading)

The European Parliament,

— having regard to the Commission proposal to the European Parliament and the Council (COM(2004)

0313) (1),

— having regard to Article 251(2) and Article 179 of the EC Treaty, pursuant to which the Commission

submitted the proposal to Parliament (C6-0032/2004),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Development and the opinion of the Committee on

Foreign Affairs (A6-0182/2005),

1.

Approves the Commission proposal as amended;

Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal

2.
substantially or replace it with another text;

3.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

P6_TC1-COD(2004)0099

Position of the European Parliament adopted at first reading on 23 June 2005 with a view to the
adoption of Regulation (EC) No …/2005 of the European Parliament and of the Council on access
to Community external assistance

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 179 and 181a
thereof,

Having regard to the proposal from the Commission,