COMMISSION STAFF WORKING DOCUMENT Implementation of Article 325 TFEU by the Member States in 2016 Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Protection of the European Union's financial interests - Fight against fraud 2016 Annual Report
Date: 2017-07-20
Institutions: European Anti-Fraud Office, European Commission
Subjects: EU programme, activity report, common strategy, crime, fight against crime, financial control, fraud, fraud against the EU, illicit trade

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 20.7.2017  SWD(2017) 270 final   COMMISSION STAFF WORKING DOCUMENT Implementation of Article 325 TFEU by the Member States in 2016 Accompanying the document REPORT FROM THE COMMISSION TO  THE EUROPEAN PARLIAMENT AND THE COUNCIL Protection of the European Union's financial interests - Fight against fraud 2016 Annual Report {COM(2017) 383 final} {SWD(2017) 266 final} {SWD(2017) 267 final} {SWD(2017) 268 final} {SWD(2017) 269 final}  
 
 
Table of Contents 

Measures taken by Member States ............................................................................................. 2 

1. 

2. 

2.1 

2.2 

2.3 

2.4 

2.5 

3. 

3.1 

3.2 

3.3 

4. 

4.1 

4.2 

Summary ...................................................................................................................... 2 

Horizontal anti-fraud initiatives and measures by Member States .............................. 5 

Progress on the development of National Anti-Fraud Strategies in 2016 .................... 5 

AFCOS ......................................................................................................................... 9 

Public Procurement .................................................................................................... 13 

Fight against corruption and organised crime ............................................................ 19 

Other measures ........................................................................................................... 24 

Anti-fraud measures in Revenue by the Member States ............................................ 32 

Fight against customs fraud ....................................................................................... 32 

Fight against organised crime and anti-smuggling .................................................... 35 

Fight against tax evasion and VAT fraud .................................................................. 37 

Sectoral Anti-Fraud Policies, Measures and Results by Member States - Expenditure40 

Agriculture ................................................................................................................. 40 

Cohesion policy and Fisheries ................................................................................... 44 

TABLE OF FIGURES 

FIGURE 1: NUMBER OF MEASURES REPORTED BY AREA 

2 

FIGURE 2: HORIZONTAL V SECTORAL 

3 

FIGURE 3: SECTORAL MEASURES: REVENUE 4 

FIGURE 4: SECTORAL MEASURES: EXPENDITURE  4 

FIGURE 5: MEASURES SHOWN BY AREA ADDRESSED AND STAGE/S IN THE ANTI-FRAUD CYCLE

4 

FIGURE 6: NAFS: STATE OF PLAY  5 

2 

 
 
 
 
 
 
 
 
 
MEASURES TAKEN BY MEMBER STATES 

1. 

SUMMARY  

Member States reported a significant number (80) of measures in 2016 on the protection of the 
EU’s financial interests and the fight against fraud, reflecting the adoption of the bulk of Union 
legislation for the new programming period 2015-2020. Member States were invited to report a 
maximum of three (most important) anti-fraud measures. This analysis therefore gives a good 
overview of trends and priorities in the anti-fraud measures implemented by Member States but 
is not exhaustive. 

Member  States’  measures  covered  the  entire  anti-fraud  cycle,  mostly  in  the  area  of  shared 
management and control of EU funds, followed by measures on public procurement, conflict of 
interest, corruption, AFCOS, financial crime, definition of fraud, anti-fraud strategy, organised 
crime  and  whistle-blowers.  Concerning  the  anti-fraud  cycle,  most  of  the  measures  concerned 
the  prevention  stage,  followed  by  detection,  investigation  and  prosecution,  recovery  and 
sanctions. The majority of measures were sectoral (73%) rather than horizontal (27%). Of these 
sectoral  measures,  twenty  concerned  revenue  in  the  fields  of  tax  fraud  (60%)  and  customs 
(40%).  Forty-one  measures  concerned  expenditure  in  a  broad  range  of  budgetary  areas 
(cohesion  policy,  agriculture,  fisheries,  fund  for  the  most  deprived,  centralised  direct 
expenditure, migration and asylum, globalisation fund).  

Figure 1: Number of measures reported by area 

Figure 2: Horizontal v Sectoral 

3 

Member StateNo of measuresPublic procurementFinancial crime (incl. money laundering)Organised crimeCorruptionConflict of interestFraud definitionAFCOSWhistleblowerCustoms / TOR / illicit tradeShared management and control of EU fundsAntifraud or anticorruption strategyOtherAT32211221BE311111BG321121HR333CY22111111CZ32222111DK31211EE31131FI3111123FR311111111DE3111211GR311111HU311111IE3121111IT3113LV31111112LT312LU211211MT2122121NL31112PL3112PT3111121RO3212211SK322111SI3131112131ES311112SE31111111131UK21221TOTAL80231491619131541539925% of total100%29%18%11%20%24%16%19%5%19%49%11%31% 
 
 
 
 
 
 
 
 
Figure 3: Sectoral measures: revenue 

4 

Member Statea) Horizontalb) SectoralTotalAustria33Belgium123Bulgaria123Croatia33Cyprus112Czech Republic213Denmark123Estonia123Finland123France213Germany33Greece123Hungary213Ireland33Italy33Latvia33Lithuania33Luxembourg22Malta22Netherlands33Poland33Portugal33Romania213Slovakia123Slovenia33Spain33Sweden123United Kingdom22Total225880 
 
 
 
 
 
 
Figure 4: Sectoral measures: expenditure 

Figure 5: Measures shown by area addressed and stage/s in the anti-fraud cycle 

5 

AreaPreventionDetectionInvestigation and ProsecutionRecovery and sanctionsTotal N° of measuresPublic procurement21145623Financial crime (including money laundering)979414Organised crime56639Corruption13105516Conflict of interest17133519Fraud definition9115413AFCOS12108615Whistleblower4314Customs/TOR/illicit trade12109515Shared management and control of EU funds323111839Antifraud or anticorruption strategy56139Other21165425TOTAL6455221880%80%69%28%23%100% 
 
 
 
 
2. 

HORIZONTAL ANTI-FRAUD INITIATIVES AND MEASURES BY MEMBER STATES 

 PROGRESS  ON  THE  DEVELOPMENT  OF  NATIONAL  ANTI-FRAUD  STRATEGIES

2.1 
IN 2016  

1

By the end of 2016, a total of nine Member States had adopted a National Anti-Fraud Strategy 
and transmitted  it to  the Commission2. This represents  an increase in  the number of  National 
Anti-Fraud Strategies (NAFS) compared to 2015. Moreover, this demonstrates the commitment 
of  Member  States  to  adopt  a  strategic  approach  towards  combatting  fraud  and  irregularities 
detrimental to the EU's and national budgets. The Commission welcomes these developments 
and  invites  all  other  Member  States  to  follow  the  example  and  establish  NAFS  in  the  near 
future based on the Guidelines prepared (in collaboration with Member States experts).  

Figure 6: NAFS: State of play 

A National Anti-Fraud Strategy allows for structuring the fight against fraud affecting EU and 
national  budgets  at  the Member  State  level.  It  helps  to  identify  vulnerabilities  to  fraud  in  the 
systems,  assess  the  main  fraud  risks,  set  and  implement  responses;  evaluate  progress  made, 

1The Commission invites Member States to consult the General Guidelines on National Anti-Fraud Strategies 
when starting the procedure of establishing a NAFS.  
2  The  nine  Member  States  are:  Bulgaria,  Croatia,  Czech  Republic,  France,  Greece,  Hungary,  Italy,  Malta  and 
Slovakia. In addition, Latvia and Romania have adopted NAFS and transmitted it to OLAF in the first quarter of 
2017. Besides, Belgium, Netherlands and Poland reported that the procedure to establishing a NAFS is on-going; 
Austria and Lithuania indicated the adoption of specific strategic documents in this respect. 

6 

 
 
 
 
 
                                                            
adapt the response to the evolution of the fraud trends and the resources available, and ensures 
the involvement of all relevant stakeholders in particular by means of enhanced collaborative 
and coordinated actions. A NAFS also helps to ensure harmonisation of the response to fraud 
risks throughout the country, especially in the case of a decentralised management structure. 

The benefits of a National Anti-Fraud Strategy include: 

  Ensuring the effective and efficient protection of the EU financial interests (i.e. 
improving  the  prevention,  detection  and  fight  against  corruption  and any  other 
illegal activities affecting the financial interests of the Union); 

  Setting out a better working framework upon which the institutions involved in 
the process of implementation and control of EU funds could work together to 
improve  administrative  capacity  and  determine  more  precisely  the  roles  and 
responsibilities  of  the  institutions  involved.  This  would  ensure  effective  co-
ordination  of  legislative,  administrative  and  operational  activities  of  the 
institutions; 

  Achieving a higher degree of recovery of unduly spent funds from the budget of 
the  European  Union  and  contributing  to  proportionate  and  dissuasive  penalties 
in accordance with the applicable law. 

While  most  strategies  cover  all  EU  funds,  certain  strategies  concentrate  on  structural, 
agricultural or other specific funds. The questionnaire offered Member States the opportunity to 
provide further information about the procedure for establishing a NAFS, and these are detailed 
below as follows: 

  BELGIUM:  At  present  there  is  no  national  coordination  of  the  anti-fraud  strategies 
applied by the various departments concerned, but the possibility of drafting a NAFS is 
being  analysed.  A  legal  framework  regulating  the  functioning  of  AFCOS  and 
cooperation with all the departments concerned is currently being drafted. 

  CZECH  REPUBLIC:  The  NAFS  specifically  covers  legislation  governing  public 

procurement. 

  GREECE:  Updated  of  the  action  plan  of  their  NAFS  and  stated  that  integrated  the 

actions in their national management and control system. 

  FRANCE:  On  14  September,  the  Minister  for  Finance  adopted  the  first-ever  national 
multiannual plan to tackle fraud against public finances. This plan is structured around 
five  strategic  priorities  and  includes  specific  measures  relating  to  EU  funds.  These 
measures  relate  to  risk  mapping  and  investigation  techniques,  with  an  alert  platform 
created  for  the  European  Social  Fund  (ESF)  and  information  exchanged  to  prevent 
double  financing  under  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD). 

  CROATIA:  As  stated  in  the  PIF  report  2014,  the  Republic  of  Croatia  adopted  its 
National Anti-Fraud Strategy in the field of protection of EU financial interests for the 
period 2014-2016 in January 2014. The purpose of the strategy was to ensure effective 

7 

 
 
 
 
and efficient protection of the EU financial interests by strengthening the ability of the 
AFCOS system in the Republic of Croatia to carry out predefined measures and achieve 
the set objectives. The Strategy foresaw the drafting of an Irregularity and Fraud Risk 
Management  Methodology  which  was  developed  by  the  Service  for  Combating 
Irregularities and Fraud, Ministry of Finance in 2016. All AFCOS system bodies in the 
Republic  of  Croatia  (Irregularity  Reporting  System  bodies,  AFCOS-service  and 
AFCOS-Network  bodies)  are  obliged  to  conduct  risk  assessments  in  accordance  with 
the  methodology.  The  results  of  the  risk  assessment  will  be  taken  into  account  in  the 
new  National  Anti-Fraud  Strategy  and  will  eventually  lead  to  the  updating  and 
amending  of  existing  Guidelines,  existing  legislation  etc.  Additionally,  training  needs 
analysis  conducted  in  accordance  with  the  Training  Needs  Analysis  Methodology  for 
the  period  2017-2019  will  also,  along  with  a  Fraud  Risk  Management  Methodology, 
provide inputs for developing a new National Fraud Strategy. 

  LATVIA:  The  AFCOS  Latvia  Operational  Strategy  and  Action  Plan  2017-2019  was 
adopted  on  16  January  2017.  The  strategy  identifies  three  main  objectives:  policy 
planning,  internal  and  external  coordination  and  fraud  prevention  activities.  The 
Strategy will be revised and updated at least once per year. 

  LITHUANIA: A National anti-corruption programme for 2015-2025 that contains anti-

corruption and anti-fraud measures and activities relating to the use of EU funds. 
  MALTA: The NAFS covers both local requirements and international obligations. 
  AUSTRIA: Adopted a national revenue strategy as part of the overall business strategy 

of the Federal Ministry of Finance. 

  POLAND: Given the specific nature of the implementation of EU funds in Poland, the 
size  of  allocations  and  the  number  of  institutions  involved  in  the  process  of  the 
protection  of  the  EU’s  financial  interests  against  fraud,  Poland  considers  that  it  is  not 
appropriate  to  create  one  general  national  strategy.  Poland  is  therefore  working  on 
several separate sectorial strategies drawn up by the competent national institutions and 
adapted to the specific nature of the area at issue. 

  PORTUGAL: Anti-fraud strategies were approved as part of the 2014-2020 operational 
programmes  for  the  European  Structural  and  Investment  Funds  (ESIF).  The  Strategic 
Plan  to  Combat  Tax  and  Customs  Fraud  and  Evasion  2015-2017  (Revenue)  was 
approved on 1 January 2015. A cross-cutting National Anti-fraud Strategy covering all 
areas is currently being consolidated, since the fight against fraud is a pressing concern 
for  all  the  national  authorities  involved.  We  also  wish  to  highlight  the  cooperation 
agreement  between  the  IGF,  in  its  capacity  as  AFCOS,  and  the  Portuguese  Attorney-
General’s Office, which is in the final stages of preparation.  

  ROMANIA: Currently has an ongoing procedure for a new NAFS covering the 2017-
2023 period, as the NAFS covering the period before its accession to EU (2007) is no 
longer  valid.  The  anti-fraud  department  DLAF  is  responsible  for  drawing  up  the 
National  Anti-Fraud  Strategy  (NAFS)  and  coordinating  its  implementation.  DLAF 
prepared the draft NAFS and, in April 2016, sent it to the national  bodies involved in 
the  protection  of  the  financial  interests  of  the  EU  in  Romania  and  asked  for  their 

8 

 
 
support in developing and implementing the strategy. Specifically, DLAF asked each of 
those bodies to examine the documents and  make proposals and comments; fill in the 
section  that  concerned  it  with  relevant  information  and  propose  new  measures  falling 
within its remit to meet the objectives set out. The draft NAFS was also submitted to the 
European Anti-Fraud Office (OLAF) for comments and proposals. DLAF has collected 
and analysed all the replies that it has received, including OLAF’s. DLAF is now taking 
to following steps to complete the adoption of the Romanian NAFS: updating the NAFS 
with  proposals,  adding  any  necessary  information  (deadlines,  indicators,  competent 
persons,  budgetary  impact  etc.);  submitting  the  updated,  complete  NAFS  to  public 
debate; preparing the final version of the NAFS, submitting the NAFS for adoption by 
Government Decision; implementing the NAFS; reviewing and updating the NAFS. 
  UNITED  KINGDOM:  Considers  that  one  strategy  covering  the  various  sectors  of 
Agriculture, Structural Funds and Own Resources is not suitable to the situation in the 
UK. Instead, the UK finds that the best way to fight fraud is for each sector to produce 
and implement individual strategies to suit their own particular needs. 

Background to NAFS 

The new Multiannual  Financial Framework applicable to  the programming  period  2014-2020 
has  been  strengthened  as  regards  fraud  risk  assessment,  fraud  prevention  and  detection.  For 
shared  management  the  sectoral  Regulations  require  Member  States  to  put  in  place  effective 
and  proportionate  anti-fraud  measures,  taking  into  account  the  risks  identified,  to  take  the 
necessary  steps  to  prevent,  detect  and  sanction  fraud  and  irregularities  effectively  and  to 
reimburse  irregular  amounts  to  the  EU  budget.  However,  going  beyond  the  immediate 
regulatory  requirements  and  embedding  these  anti-fraud  measures  in  a  National  Anti-Fraud 
Strategy (NAFS) is encouraged in order to ensure better monitoring of the fight against fraud 
detrimental  to  the  financial  interests  of  the  EU  and  that  of  the  Member  States,  as  well  as  to 
ensure homogenous  and effective practices, especially where the organisational structures  are 
decentralised. 

In the last two years, the COCOLAF Fraud Prevention Group focused on various aspects of the 
NAFS  topic.  First,  as  a  pilot  project,  the  working  group  in 2014  prepared  the  'Guidelines  for 
National  Anti-Fraud  Strategies  for  European  Structural  and  Investment  Funds  (ESIF)'.  These 
guidelines laid down the foundation for drafting a National Anti-Fraud Strategy, however with 
a  limited  scope  on  expenditure  in  the  field  of  ESIF.  In  the  following  year,  another  working 
group was set up to target the practical side of NAFS. As a result, in 2015 the document called 
'Practical steps towards drafting of a National Anti-Fraud Strategy' was issued together with a 
practical tool in the form of an xls file that can be used to carry out the assessment of the state 
of play with regard to the current measures in place, taking into account all the four stages of 
the anti-fraud cycle.  

9 

 
 
 
 
 
The  current  guidelines  represent  an  update  of  the  NAFS  guidelines  issued  in  2014.  The 
working  group in  2016 aimed at revising as well as  enlarging the previous guidelines for the 
NAFS so that it become a horizontal document covering all shared management expenditure: 
European  Structural  and  Investment  Funds  (ESIF),  Agriculture,  Home  Affairs  Funds 
(AMIF/ISF)  and  Fund  for  European  Aid  to  the  Most  Deprived  (FEAD).  In  addition,  the 
guidelines were enriched with a number of concrete examples of Member States' practice that 
have proven to be successful. 

2.2 

 AFCOS  

Most of the anti-fraud measures taken by Member States in 2016 were horizontal and did not 
target a specific budgetary area.  

Denmark - AFCOS anti-fraud manual 

Denmark  drafted  a  manual  for  cooperation  in  the  Danish  anti-fraud  network  (AFCOS 
network).  This  targeted  the  prevention  detection;  investigation  and  prosecution  stages  of  the 
anti-fraud  cycle  and  covered  the  areas  of  AFCOS,  customs/TOR/Illicit  trade  and  shared 
management/control of EU funds. The manual provides a comprehensive horizontal overview 
of the authorities' work to combat fraud involving EU funds, the cooperation in the network and 
cooperation  between  the  Danish  authorities  and  OLAF.  It  covers  a  wide  range  of  issues 
including: the legal basis in EU law for fighting fraud, national provisions, the conduct of tasks, 
the organisation of anti-fraud work in the AFCOS network's authorities, horizontal cooperation 
across  authorities  in  the  AFCOS  network  and  procedures  for  transferring  cases  to  the  Public 
Prosecutor for Serious Economic and International Crime (SØIK). 

France - AFCOS 

France  adopted  a  national  anti-fraud  strategy  at  the  French  anti-Fraud  Coordination  Service 
(AFCOS).  This  measure  covers  the  full  range  of  the  anti-fraud  cycle  from  prevention, 
detection,  investigation  and  prosecution  to  recovery  and  sanction  and  includes  the  areas  of 
AFCOS  and  antifraud  or  anti-corruption  strategy.  It  is  the  first  time  that  this  strategy  is 
multiannual  and  in  addition  to  measures  relating  to  social  security  fraud  and  tax  fraud  (VAT 

10 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionManagement of funds; monitoring/desk checks; on the spot checks; irregularities reporting; otherHTo clarify or consolidate existing rules; cross-cutting measure, multi-agency measure/ measure with impact on various bodiesSingleAFCOS, customs, shared management and control of EU fundsAdministrativeN 
 
 
 
 
 
 
 
 
fraud),  it  also  includes  specific  measures  relating  to  EU  funds.  The  aim  is  to  improve  risk 
analysis  of  relevant  stakeholders,  but  also  to  develop  new  detection  tools,  such  as  an  alert 
platform  for  the  ESF.  These  measures  are  multiannual  and  will  be  implemented  over  a  three 
year period from 2016 to 2018. The national strategy includes an organisational measure which 
consists  in  creating  an  alert  platform  for  the  ESF,  as  well  as  a  committee  tasked  with  the 
examination  of  any  alerts  received.  In  addition,  the  national  strategy  includes  measures  to 
ensure that information relating to the ESF and the EAFRD will be cross-referenced between 
management  authorities  and  national  administrations.  There  are  also  measures  aimed  at 
improving knowledge of the risks relating to paying agencies of EU funds by developing risk 
maps.  Finally,  in  terms  of  revenue,  the  fight  against  intra-Community  VAT  fraud  is  also 
improved  by  better  systems  for  cross-referencing  information  between  customs  and  the  tax 
administration. 

Croatia - AFCOS 

Croatia's Service for Combating Irregularities, Fraud Irregularity and Fraud Risk developed a 
management  methodology  to  promote  the  fraud  prevention  function  of  the  Croatian  AFCOS. 
Irregularity  Reporting  System  bodies,  AFCOS  Service  (Service  for  Combating  Irregularities 
and Fraud) and AFCOS-Network bodies are obliged to conduct assessment of risks related to 
irregularities and fraud in line with  their  competences. The purpose of the  methodology  is  to 
provide  instructions  and  tools  for  irregularity  and  fraud  risk  management  in  agriculture, 
fisheries  and  cohesion  expenditure.  It  is  expected  to  support  the  identification  of  the  riskiest 
projects, assessment of exposure of managing authority and certifying authority to fraud risks, 
assessment  of  exposure  of  AFCOS  to  risks  threatening  its  objectives  and  identification  and 
implementation of corresponding risk mitigation measures. 

11 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionRecovery and sanctionAFCOS; antifraud or anticorruption strategyPackageOrganisationalOperationalInter-agency co-operation, otherNeutral on resourcesHNIT tools, Web reporting/Hotline, flagging practice, risk indicators, otherEnhanced coordination, cooperation, information flow, ex-ante and ex-post controls; targeting of checks and investigationsHN 
 
 
 
 
 
Latvia - AFCOS 

Latvia  drafted  the  AFCOS  Latvia  Operational  Strategy  and  Action  Plan  2017-2019.  The 
Strategy is set up for three years and revised annually in the AFCOS Council. The monitoring 
of  implementation  is  under  AFCOS  responsibility,  however  the  actions  are  implemented  in 
cooperation with other competent authorities. The Strategy targets the fraud prevention stage of 
the  anti-fraud  cycle  and  focuses  on  policy  making,  coordination  and  cooperation  matters,  as 
well as fraud prevention trainings, public awareness and involvement in the OLAF Anti-Fraud 
Co-ordinator's  Network  (OAFCN).  Concerning  the  area  of  fraud  definition,  the  criminal  law 
evaluation working group concluded that no amendments are needed regarding specific terms 
to the EU funds as the current law entails all the necessary points but under different articles. 
The  focus  shall  be  on  the  institutions  who  are  applying  the  terms  in  practice  (investigators, 
prosecutors) and to work on common interpretation of terms and respective application.  

Latvia also introduced a series of additional horizontal fraud prevention measures: 

  AFCOS  representation  and  participation  in  the  OLAF  communicators’  network  and  other 
meetings, ensuring national participation and representation at the respective level meetings. 
  Identified existing regulatory framework, the necessary functions and the competent authorities 
in  order  to  determine  whether  any  changes  /amendments  are  needed  to  ensure  that  the 
Administrative Cooperation Agreement with OLAF is executed properly. 

  Prepared and signed ACA. 
  Communicated and exchanged information between all competent authorities. 

Communicated on preventive measures with the public on antifraud issues in accordance with Anti-
Fraud Communicator’s Network (OAFCN) initiatives. Obtained indication of the public's perception and 
awareness, as well the possible levels of fraud in Latvia in order to determine future courses of action 
to fraud prevention. 

12 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralPreventionSManagement of fundsTo enhance existing measureASingleAFCOS; otherAdministrative 
 
 
 
 
 
 
 
 
 
 
 
Malta - AFCOS 

Malta also improved its relationships with various AFCOS services from different EU Member 
States  by  participating  in  a  study  visit  in  Riga,  Latvia  between  31  May  till  3  June,  hosting  a 
round  table  with  AFCOS  Italy  between  24-26  August,  hosting  AFCOS  Bulgaria  26-30 
September  and  participating  in  a  study  visit  in  Sofia,  Bulgaria  between  10-13  October.  This 
measure  targeted  the  prevention,  detection,  investigation  and  prosecution  stages  of  the  anti-
fraud  cycle  and  the  areas  of  public  procurement,  fraud  definition,  AFCOS,  customs,  shared 
management. 

Netherlands - AFCOS 

Netherlands set up an AFCOS-team by merging three different units: the unit which deals with 
OLAF cases, the Customs fraud unit and the excise fraud unit. The main tasks of this 25 person 
AFCOS-team  are  to  work  together  with  OLAF  on  fraud  cases,  and  to  settle  incoming 
information in such a way as to investigate and pursue as many criminal companies as possible. 
The  Dutch  AFCOS-fraud  unit  has  all  the  necessary  expertise  to  set  up  strong  anti-fraud 
activities.  One  of  the  subtasks  of  this  team  is  to  raise  internal  and  external  awareness  on  the 
importance of a strong anti-fraud policy.  

13 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionPublic procurement; fraud definition; AFCOS; customs/TOR/illicit trade; shared management and control of EU fundsSingleAdministrativeA Monitoring/desk checks; on the spot checks; investigation; irregularity reportingTo clarify or consolidate existing rulesHAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionIncreased resourcesSOperationalNRisk indicators; increased number of checksEnhanced coordination, cooperation, information flow, ex-ante and ex-post controls; targeting of checks and investigationsSAFCOS; customsPackageOrganisationalNCompetence; inter-agency co-operation 
 
 
 
 
 
 
 
 
 
 
Finland - AFCOS 

Finland  activated  the  national  AFCOS  network  and  improved  cooperation  and  coordination 
between  the  national  competent  authorities  in  the  field  of  fraud  prevention.  The  Finnish 
AFCOS  organised  first coordination  meetings  for  the  national  authorities  in  order  to  enhance 
the exchange of information and experiences among the responsible bodies. Closer cooperation 
will result as more coordinated actions and participation in the OLAF activities. This measure 
targeted the fraud prevention stage of the anti-fraud cycle in the area of AFCOS, customs and 
shared management. 

2.3 

 PUBLIC PROCUREMENT  

Progress was made in the area of public procurement. Indeed by 18 April 2016, EU Member 
States had to transpose the following three directives into national law: 

  Directive 2014/23/EU on the award of concession contracts  
  Directive 2014/24/EU on public procurement 
  Directive  2014/25/EU  on  procurement  by  entities  operating  in  the  water,  energy, 

transport and postal services sectors 

Bulgaria - Public procurement 

Bulgaria adopted the Public Procurement Act to target  fraud prevention and detection in the 
field of public procurement and corruption. This is a new framework act transposing Directives 
2014/24/EU and 2014/25/EU and other directives applicable in the field of public procurement. 
The  Regulation  for  implementation  of  the  Public  Procurement  Act  was  also  adopted  by  the 
Council  of  Ministers.  It  set  outs  provisions  laying  down  rules  that  are  to  be  referred  to  in 
implementation of the Act or are essential for its implementation. 
The new Public Procurement Act also stipulates: national rules for public procurements under 
the  Directives’  thresholds,  wide  preliminary  control  by  the  Public  Procurement  Agency,  e-
procurement, centralized procedures, establishment of Methodological Committee for unifying 
the practice of the Control Bodies and new administrative penalty rules. 

14 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionOrganisationalAInter-agency cooperationNeutral on resourcesHAFCOS; customs; shared management and control of EU fundsPackage 
 
 
 
 
 
 
 
 
Czech Republic - Public procurement  

Czech  Republic  also  took  steps  to  harmonise  national  legislation  with  EU  legal  provisions 
fraud  prevention  in  the  recovery  and  sanction  stage  of  the  anti-fraud  cycle  and  covering  the 
fields of public procurement, corruption, conflict of interest for the following laws:  

  Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on 

public procurement and repealing Directive 2004/18/EC.  

  Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on 
procurement by entities operating in the water, energy, transport and postal services sectors and 
repealing Directive 2004/17/EC.  

  Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on 

the award of concession contracts.  

  Directive 2014/55/EU of the European Parliament. 
  Act No 134/2016 on public procurement. 2016 Action Plan to Fight Corruption 
  Draft  Act  amending  Act  No  159/2006  on  conflict  of  interest,  as  amended,  and  other  related 

acts. 

  Clarification  of  the  conditions  for  conflict  of  interest  and  its  consequences,  the  obligation  of 
tenderers  to  disclose  their  ownership  structure,  clarification  of  the  conditions  for  market 
consultations,  under  which  the  contracting  authority  consults  entities  pursing  commercial 
activities on the conditions of a tender procedure beforehand. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionLegislativeOrganisationalPowers; definition of a specific topic; other administrative penaltiesCompetence; inter-agency cooperationTo enforce the rules in line with developments in EU lawSNeutral on resourcesSNNPublic procurement; corruptionPackageAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionRecovery and sanctionTo clarify or consolidate existing rules; to remedy flaws; to enforce the rules in line with developments in EU lawHPublic procurement; corruption; conflict of interestSingleLegislativeNCompetences; powers; definition of a spectific topic; financial penalties; other administrative penalties 
 
 
 
 
 
 
 
 
 
Greece - Public procurement 

Greece  adopted  a  new  legislative  framework  for  public  procurement  targeting  the  prevention 
and  detection  stages  of  the  anti-fraud  cycle  in  the  areas  of  public  procurement  and  conflict  of 
interest.  The  framework  adopted  on  8  August  2016  transposes  Directives  2014/24/EU  and 
2014/23/EU and codifies, consolidates and simplifies the pre-existing institutional framework for 
public  procurement  in  a  single  piece  of  legislation.  Law  4413/2016  transposes  Directive 
2014/23/EU on concessions into Greek law.  

Spain - Public procurement 

Spain also took steps to transpose the European Directives on public procurement to boost the 
prevention stage of the anti-fraud cycle in the areas of public procurement, corruption, conflict 
of  interest.  The  draft  law  on  public-sector  contracts,  which  transposes  into  Spanish  law 
Directives 2014/23/EU and 2014/24/EU of the European Parliament and of the Council of 26 
February  2014  was  approved.  In  addition,  the  draft  law  on  procurement  procedures  in  the 
water, energy, transport and postal services sectors which transposes into Spanish law Directive 
2014/25/EU of the European Parliament and of the Council of 26 February 2014 was approved. 
The measure covers all aspects of public procurement including the definition of the subjective 
and  objective  scope  of  application,  the  principles  that  should  govern  tenders,  bans  on 
contracting, the definition of the subject of the contracts, procedures and criteria for awarding 
the contract, procedures for dealing with breaches of contract law, disclosure and transparency 
of contracts, amendments to contracts, subcontracting and contract enforcement. The measures 
taken  include  the  following:  (1)  an  obligation  to  prevent,  detect  and  resolve  conflicts  of 
interest; (2) an extension of the ban on contracting due to incompatibility to cover relatives in 
the  ascending  and  descending  lines  and  second-degree  relatives;  (3)  the  abolishment  of  the 
negotiated  procedure  without  publication  based  on  volume;  (4)  the  inclusion  of  all  political 
parties,  unions  and  employers’  organisations  in  the  scope  of  the  law;  (5)  a  reinforcement  of 
special  appeals  relating  to  procurement  procedures;  (6)  the  tightening  up  of  rules  concerning 
contracting authorities that are not public bodies and awards to in-house providers. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionPublic procurement; conflict of interest; otherSingleLegislativeN/AOtherTo remedy flaws; to enforce the rules in line with developments in EU law; otherH 
 
 
 
 
 
 
 
France - Public procurement 

took  measures  addressing 

transparency  of  companies  participating 

France 
in  public 
procurement. For example: white lists (lists of companies with a high level of transparency and 
integrity  during  participation  in  public  procurement),  debarment/black  lists  (preventive 
instrument  -  exclusion  from  public  contracting  including  procurements),  international 
collaboration  (sharing  information  and  collaboration  in  order  to  avoid  double    funding, 
debarment lists, joint investigations and exchange of best  practices, etc.), 'four-eye principle' 
(requirement that a  business transaction  should be approved by at least  two individuals)  and 
other. 

Cyprus - Public procurement 

Cyprus implemented Regulations (KDP138/2016) on Managing the Implementation of Public 
Procurement Procedures and the Exclusion of Economic Operators from Contract Procedures, 
which includes: 

  Approval of changes to and claims regarding public contracts by competent bodies on the basis 
of  specified  financial  limits,  provided  that  the  conditions  laid  down  in  the  relevant  European 
directives are met.  

  Procedure for receiving supplies. 
  Procedure for assessing contractor performance. 
  Procedure for excluding economic operators from contract procedures. 

Latvia - Public procurement 

Latvia completed preparatory work to transpose EU Procurement Directives into national law. 
Measures  were  taken  by  the  Managing  Authorities  to  update  internal  procedures,  improve 
information systems, set up a working group for risk management and for certain measures in 
the field  of Public Procurement (legislation and trainings). The  main amendments to  national 
Public Procurement law during 2016 were  the automatic exclusion of candidates or  tenderers 
found  guilty  in  criminal  offences  such  as  participating  in  a  criminal  organization,  bribery, 
fraud,  money  laundering  or  terrorist  financing  and  trafficking  in  human  beings.  All  contract 

17 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionTo enforce the rules in line with developments in EU lawSPublic procurement; corruption; conflict of interestSingleLegislativeNOther 
 
 
 
 
 
 
 
 
 
information  must  now  be  published.  This  measure  targets  the  prevention,  detection,  recovery 
and  sanction  stages  of  the  anti-fraud  cycle  in  the  areas  of  public  procurement,  corruption, 
conflict of interest and shared management. 

Latvia  also  carried  out  preparatory  work  to  implement  the  electronic  procurement  procedure 
that is already available but not obligatory. There are certain conditions for public institutions 
and  the  regional  councils  to  use  the  common  procurement  institutions  services  to  obtain 
goods/services.  Measures  to  improve  the  transparency  of  companies  include  some  regulation 
for  abnormally  low  tenders,  and  ensuring  that  verifications  for  average  hourly  rate  are  made 
according  to  minimum  rates.  Also  the  public  procurement  law  was  clarified  on  potential 
conflict  of  interest  where  the  employee  or  official  who  prepares  procurement  documentation 
may not participate in the tender. Latvia has focused its update of existing public procurement 
procedures  and  checklists  on  setting  up  working  groups,  improving  the  reporting  system  of 
irregularities,  and  the  discriminatory  requirements  in  tenders.  The  Procurement  Monitoring 
Bureau organised 32 seminars for 1615 participants on applying the Directives and conflict of 
interest.  

Hungary - Public procurement 

Hungary targeted the prevention and detection stages of the Anti-Fraud Cycle in the areas of 
public  procurement  and  corruption  with  activities  carried  out  by  the  Public  Procurement 
Authority to combat corruption in the public procurement sector:  

  organising  information  and  training  sessions  for  interested  parties:  a  series  of  events 

called the Public Procurement Academy;  

  increased inspection activities: checks on negotiated procedures without publication and 

on the performance of and changes to public procurement contracts;  

  activities aimed at increasing transparency, e.g. keeping a record of qualified suppliers, 

keeping a list of prohibited suppliers, and publishing a code of ethics 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionOperationalNIT toolsEnhanced information flow and ex-ante controls; targeting of checksPublic procurement; corruption; conflict of interest; shared management and control of EU funds; otherPackageLegislativeAdministrativeACompetences; powersTo remedy flawsRecovery and sanctionHHN/AManagement of funds; monitoring/desk checks; on the spot checks; audit checklistTo enhance existing measureH 
 
 
 
 
 
 
 
Romania - Public procurement 

Romania  adopted  a  new  public  procurement  legislative  package  transposing  the  new  EU 
Directives in the field and setting up a mechanism to prevent conflicts of interest in the award 
of  public  procurement  contracts.  This  measure  targeted  the  prevention  stage  of  the  anti-fraud 
cycle  in  the  areas  of  public  procurement,  corruption  and  conflict  of  interest.  The  package 
included: sector-specific procurement, works and service concessions, remedies and means of 
redress  in  relation  to  the  award  of  public  procurement  contracts,  sector-specific  procurement 
contracts and concession contracts for works and services, and the organisation and functioning 
of  the  National  Complaint  Resolution  Council  (CNSC)  and  Law  setting  up  a  mechanism  to 
prevent conflicts of interest in public procurement procedures.  

Where the ex-ante verification procedure identifies a potential conflict of interest in the award 
of  the  public  procurement  contract,  the  National  Integrity  Agency  (ANI)  issues  an  integrity 
warning,  which  it  sends  to  the  manager  of  the  entity  concerned  so  that  the  issue  can  be 
rectified. The ‘Prevent’ legislative package launched by the Ministry of Justice in consultation 
with  the  National  Integrity  Agency  which  does  not  have  a  right  of  legislative  initiative  is 
intended to help meet the objectives relating to the prevention of conflicts of interest in public 
procurement. It has been signed into law by the President of Romania. A new package of four 
laws transposing the Directives in this field as well as: 

  implementing rules on public procurement;  
  sector-specific procurement;  
  works and service concessions;  
  remedies and means of redress in relation to the award of public procurement contracts;  
  sector-specific procurement contracts and concession contracts for works and services and the 

organisation and functioning of the National Complaint Resolution Council (CNSC); 

  law setting up a mechanism to prevent conflicts of interest in public procurement procedures. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionPublic procurement; corruptionPackageOperationalN/AOtherEnhanced information flow, ex-ante and  ex-post controlsH 
 
 
 
 
 
 
 
 
 
 
2.4 

 FIGHT AGAINST CORRUPTION AND ORGANISED CRIME 

Belgium - Preventing bribery 

Belgium amended criminal law and criminal procedure criminal sanctions targeting the fraud 
investigation and prosecution and recovery and sanction stages of the anti-fraud cycle, in the 
area  of  corruption.  The  Potpouri II  Act  of  5 February 2016  amended  two  points  concerning 
bribery:   

  Amendments  to  the  definition  of  passive  bribery  (both  public  and  private  bribery)  - 

Articles 246 and 504a of the Penal Code  

  Stricter punishment for passive and active bribery of a person who exercises a public function 
in a foreign state or public international organisation, new article 250 of the Criminal Code. 

France - Fight against corruption 

France took a series of measures to fight against corruption in public procurement: 

  Measures  addressing  transparency  in  public  procurement  including  disclosure  of  fraudsters, 
'naming  and  shaming',  disclosure  of  beneficiaries,  beneficial  owners  of  the  contractors  and 
subcontractors,  including  advance  checking,  disclosure  of  the  members  of  evaluation 
committees,  public  disclosure  of  documents/information  (public  access  to  key  documents 
including terms of reference individual bids, evaluation sheets and contracts or amendments to 
the contracts) and other. 

  Measures  to  improve  the  effectiveness  of  public  procurement  management.  These  include 
publishing  the  e-procurement  procedure  online,  market-based  indicators,  specialised  or 
centralised  procurement  authorities,  assessment  of  anti-corruption  measures,  corruption 
statistics,  integrity  pacts  (a  tool  for  preventing  corruption  in  public  contracting  through 
contractual  clauses,  for  example  an  agreement  between  the  government  agency  offering  a 

20 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralInvestigation and prosecutionRecovery and sanctionCorruptionPackageLegislativeN/ACriminal sanctionsOtherH 
 
 
 
 
 
 
 
 
 
 
 
contract and companies bidding for it that they will abstain from bribery, collusion and other 
corrupt practices for the extent of the contract). 

  Measures  to  prevent  corruption  amongst  personnel,  including  management.  Personnel 
administration  (transparent  recruitment,  advance  screening,  vetting  of  candidates,  rotation  in 
sensitive  posts),  rules  on  ethics  (codes  of  conduct,  acceptance  of  gifts),  whistle-blowers 
(protection  of  witnesses  or  employees),  anti-corruption  training  and  awareness  raising, 
mandatory disclosure of assets, post-employment rules, sanctions (administrative, disciplinary 
or  financial  sanctions,  debarment,  listing  of  non-reliable  staff),  leniency/voluntary  disclosure 
programmes  (motivation  measure,  cooperation  with  the  police  during  investigation  etc.  in 
law),  wiretapping,  agents 
accordance  with/encapsulated 
provocateurs. 

in  competition  and  criminal 

Lithuania - Fight against corruption 

Lithuania  introduced  the  Management  and  Control  System  for  2014-2020  reinforced  by 
incorporating  the  Special  Investigation  Service  (STT)  –  the  anti-corruption  law  enforcement 
agency  responsible  for  the  detection  and  investigation  of  corruption  related  criminal  acts  and 
development and implementation of corruption prevention measures. This measure targeted the 
prevention  and  detection  stage  of  the  anti-fraud  cycle  in  the  area  of  corruption.  In  this 
connection, the Procedure for Exchanging Information on the Suspected Corruption Cases with 
STT  was  established  and  co-implementation  of  the  Operational  Programme  of  the  European 
Union Funds Investments in 2014-2020 by STT was provided for in the national legal acts. The 
Government of the Republic of Lithuania made the following Resolutions: 

  No.  473  of  11  May  2016  "on  the  Amendment  of  the  Resolution  of  the  Government  of  the 
Republic  of  Lithuania  No.  528  of  4  June  2014,  on  the  Allocation  of  Responsibilities  and 
Functions  among  the  Institutions  Implementing  the  Operational  Programme  for  the  European 
Union Structural Funds Investments in 2014-2020." 

  No.  485  of  18  May  2016  "On  the  Amendment  of  the  Resolution  of  the  Government  of  the 
Republic  of  Lithuania  No.  1090  of  3  October  2014,  on  the  Adoption  of  the  Rules  of 
Administration  of  the  Operational  Programme  for  the  European  Union  Funds  Investments  in 
the  2014-2020"  entitles  institutions  that  administer  the  EU  funds  to  inform  STT  about 
suspected  corruption  cases  and  obliges  STT  to  inform  the  managing  authority  about  the  start 
and/or the end of pre-trial investigations. 

21 

 
 
 
 
 
 
 
 
 
 
 
 
Romania - Fight against corruption 

The following objectives and measures set out in the anti-corruption strategy are of relevance to 
the  fight  against  fraud:  transparency  in  the  management  of  public  resources;  management  of 
institutional risks and vulnerabilities; enhancing integrity and reducing vulnerabilities and risks 
of corruption in priority sectors and fields of activity; 
The  aim  of  the  2016-2020  NAS  is  to  promote  integrity  by  applying  the  legislative  and 
institutional  framework  rigorously  to  prevent  corruption  in  Romania.  It  is  a  multidisciplinary 
document  addressed  to  all  public  bodies  representing  the  executive,  the  legislature,  the 
judiciary,  the  local  public  administrations,  the  business  sector,  and  civil  society.  It  identifies 
specific  and  general  objectives  for  each  type  of  intervention.  These  are  developed  through 
transparency in decision-making and open government. 
In  conjunction  with  the  sector-specific  integrity  policies,  the  previous  NAS  (2012-2015) 
brought  about,  for  the  first  time  in  the  history  of  public  policies  in  the  field,  a  substantial 
change in the efficiency of the proposed measures. The results of the anti-corruption measures 
have had a major impact on the performance of the government and the administration. 
The  2016-2020  NAS  sets  out  general  and  specific  objectives  for  each  vulnerability identified 
by  national  and  international  evaluations.  The  measures  laid  down  in  detail  by  the  NAS  also 
include  management  of  institutional  risks  and  vulnerabilities  (including  whistle-blower 
protection and the prevention of revolving-doors situations), mitigation of risks of corruption in 
public procurement and interaction between public bodies and businesses. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionNCompetences; powers; otherTo remedy flaws; to enforce the rules in line with developments in EU law; otherHHHOrganisationalNReorganisation of existing bodies; competence; inter-agency cooperation; general trainings; simplification of proceduresNeutral on resourcesOperationalNIT tools; structured cooperation with law enforcementEnhanced coordination, cooperation and ex-ante controlsPublic procurement; corruption; conflict of interestPackageLegislative 
 
 
 
 
Romania - Fight against organised crime 

Romania  strengthened  the  institutional  and  legislative  framework  for  combating  organised 
crime  by  making  the  National  Agency  for  the  Administration  of  Seized  Assets  (ANABI) 
operational.  This  measure  targeted  the  recovery  and  sanction  in  the  area  of  organised  crime. 
This  will  ensure  that  ANABI  becomes  operational  as  required  by  Law  No  318/2015,  which 
states that the Agency should be fully operational within one year after being set up. By setting 
up this agency, Romania proposes an integrated approach to the recovery of criminal assets, by 
combining  support  for  criminal  prosecution  bodies  and  courts  with  international  cooperation, 
effective management of seized assets and social re-use of seized goods and assets. 
Operationalisation  is  a  complex  process  that  requires  new  legislation  and  various  other 
activities as provided for by law. It was necessary to take these steps in 2016, so as enable the 
process that started in 2015 to continue normally. For the law to be fully implemented, it was 
necessary to adopt secondary legislation in 2016. 

Slovenia - Fight against economic crime 

Slovenia  issued  guidelines  and  mandatory  instructions  for  drawing  up  the  police  work  plan 
for 2017. This measure targeted the detection, investigation and prosecution stages of the anti-
fraud  cycle  in  the  areas  of  financial  crime,  organised  crime,  corruption,  conflict  of  interest, 
fraud definition, and shared management. The guidelines state that the police should continue 
to  detect  and  investigate  economic  crime  and  organised  forms  of  corruption,  with  particular 
emphasis on cases that harm the banking system, the budget and EU funds, and cases that result 
in  large-scale  material  gain,  and  on  stepping  up  financial  investigations  and  the  work  of 
specialised investigation task forces. In cooperation with other authorities, the police continued 
training for criminal investigators on EU funds in 2016 via the THEMIS training project. The 
annual police guidelines prioritise: 

  detection  and  investigation  of  economic  crime  and  closer  interdepartmental  cooperation  with 

the national authorities responsible;  

23 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralRecovery and sanctionOrganised crimeSingleLegislativeNCompetences; powers; otherTo clarify or consolidate existing rulesH 
 
 
 
 
 
 
 
 
 
Czech Republic - Fight against organised crime 

Czech Republic also created the National Centre for the Fight against Organised Crime of the 
Criminal  Police  and  Investigation  Service  Office  of  the  Police  of  the  Czech  Republic.  This 
measure  targeted  the  fraud  detection,  investigation  and  prosecution  stages  of  the  anti-fraud 
cycle,  in  the  areas  of  public  procurement,  financial  crime,  organisational  crime,  corruption, 
AFCOS  and  smuggling/illicit  trade.  The  Centre  emerged  from  the  re-structuring  of  the 
Department  for  the  detection  of  corruption  and  financial  crimes.  It  is  a  new  national  police 
department in charge of detecting and investigating the most serious forms of crime, inter alia 
in the area of public procurement, corruption and use of EU funds. 

Estonia - Compulsory information for analysis 

Estonia made the business registry code for the beneficiaries’ service providers compulsory in 
the  Estonian  Managing  Information  System  (MIS)  as  of  March  2016.  This  requirement 
simplifies the mass analysis of data and helps to identify conflicts of interests (related persons 
and other connections). This measure targeted the prevention and detection stages of the anti-
fraud cycle and the area of shared management. 

24 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionInvestigation and prosecutionNeutral on resourcesSFinancial crime (including money laundering); organised crime; corruption; conflict of interest; fraud definition; shared management and control of EU fundsSingleOrganisationalAInter-agency cooperation; fraud awareness trainingAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionInvestigation and prosecutionPublic procurement; financial crime (including money laundering); organised crime; corruption; AFCOS; smuggling/illicit tradeSingleOrganisationalNReorganisation of existing bodies; competence; inter-agency cooperationH 
 
 
 
 
 
 
 
 
Most of the anti-fraud measures taken by Member States in 2016 were horizontal and did not 
target  a  specific  budgetary  area.  Particular  progress  was  made  in  the  area  of  public 
procurement. 

2.5  OTHER MEASURES 

Belgium - Targeting tax havens 

Belgium  (partially)  transposed  Directives 2014/86/EU,  2015/121/EU  and  2016/1164/EU,  in 
particular  by  adjusting  the  applicability  of  the  Dividends  Received  Deduction  (DRF), 
exempting withholding tax from dividends, introducing a choice between immediate payment 
or spread payment of exit tax in respect of income tax, and extending reporting obligations for 
payments  to  tax  havens.  The  legislative  Act reference is:  1 December 2016  (Official  Gazette, 
8 December 2016) and Programme Act of 1 July 2016. 

This measure targeted the fraud prevention stage of the anti-fraud cycle. 

Estonia - Civil action in a criminal procedure 

Estonia added to the Criminal Procedure Code a new provision that enables officials to avoid 
parallel  procedures  (criminal  and  civil)  and  file  the  state  financial  claims  in  criminal 
proceedings. The new clause sets out the types of property claims that victims can issue. This 

25 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionEnhanced cooperation, information flow, ex-ante & ex-post controls; targeting of checks & investigationsSShared management and control of EU funds; otherSingleOperationalAIT tools; web reporting/hotline; flagging practice; risk indicatorsAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionOtherSingleLegislativeAOtherTo enforce the rules in line with developments in EU law; otherS 
 
 
 
 
 
 
 
 
 
 
measure  targeted  the  investigation and  prosecution,  recovery  and  sanction  stages  of  the  anti-
fraud cycle in the areas of financial crime, customs/TOR/illicit trade, shared management.  

Spain - Improved fraud detection 

Spain's National Anti-Fraud Coordination Service defined criteria regarding the classification 
and handling of irregularities and suspected fraud in operations or projects that are the subject 
of criminal proceedings. This measure targeted the detection stage of the anti-fraud cycle in the 
area  of  AFCOS  by  establishing  guidelines  for  national  authorities  managing,  certifying  and 
monitoring  EU funding  on  the  classification  of  irregularities  such  as  suspected  fraud.  The 
purpose of the guidelines is  to  ensure that  cases are communicated correctly  to the European 
Anti-Fraud Office and followed up properly by the National Anti-Fraud Coordination Service. 

Spain launched a National Subsidy Database (BDNS), which operates as the national subsidy 
disclosure system for public subsidies and grants (both national subsidies and grants and those 
financed  using  European  funding).  The  object  is  to  improve  transparency  of  information  on 
public  subsidies  (calls  for  tender,  awards,  beneficiaries,  reimbursements,  penalties,  etc.)  and 
improve detection of different types of subsidy-related fraud.  
This  measure targets the  prevention and detection stages  of the anti-fraud cycle, in particular 
the  detection  of  fraud  involving  the  double  funding  of  the  same  project  or  activity.  As  of  1 
January 2016, the BDNS database centralises all information on all public subsidies for which 
an  application  procedure  was  organised  and  which  were  granted  by  State  bodies,  the 
Autonomous Communities and local bodies to any beneficiary.  

26 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralInvestigation and prosecutionRecovery and sanctionFinancial crime (including money laundering); customs/ToR/illicit trade; shared management and control of EU fundsSingleLegislativeACompetences; powers; recoveryTo remedy flawsHAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralDetectionAFCOS; otherSingleAdministrative NIrregularities reporting; otherOtherS 
 
 
 
 
 
 
 
 
France - Protection of whistle-blowers 

France created a general framework for the protection of whistle-blowers providing a general 
definition  and  protection  under  criminal  law:  invalidity  of  retaliatory  measures  taken  against 
them  and  a  numerical  index  identifying  lobbyists,  which  is  shared  by  the  parliamentary 
assemblies, governmental and administrative authorities and local and regional authorities. The 
High Authority for Transparency in Public Life will check whether lobbyists have in particular 
met their ethical obligations and failings will be subject to criminal sanctions. A whistle-blower 
is  defined  in  order  to  cover  a  broad  range  of  alerts:  any  domain  in  which  a  crime  or  offence 
occurs, a serious and manifest breach of an international commitment duly ratified or approved 
by France, a unilateral legal instrument of an international organisation adopted on the basis of 
such  a  commitment,  the  law  or  a  regulation,  or  a  threat  or  serious  damage  to  the  general 
interest.  The  implementation  of  procedures  for  collecting  alerts  from  staff  members  or 
freelancers is compulsory. 

Croatia - Anti-fraud training 

Croatia's  Service  for  Combating  Irregularities  and  Fraud  in  2016  also  developed  a  training 
needs analysis methodology for the period 2017- 2019.The main purpose of the methodology is 
to define the methods of identifying training needs of employees of AFCOS system bodies in 
order to design appropriate educational/training programs. Moreover, the main objective of the 
methodology is to identify topics that need to be addressed through future trainings of AFCOS 
system  bodies.  Identified  topics  will  be  included  in  the  annual  education  plans  of  AFCOS 
system bodies. 

27 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionOtherSingleOperationalAIT tools ("IT data feeding", "Other IT")Enhanced coordination, information flow and ex-post controls; targeting of checks & investigationsSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionCorruption; conflict of interest; whistle-blowersSingleLegislativeN/ACompetences; powers; definition of a specific topic; criminal sanctionsTo clarify or consolidate existing rules; to remedy flawsH 
 
 
 
 
 
 
 
 
Italy - Inspection campaign 

Italy  carried  out  an  inspection  campaign  aimed  at  bringing  to  light  entities  which,  despite 
having carried out many transactions with EU and/or non-EU suppliers and/or clients, failed in 
2014  to  submit  the  declarations  provided  for  with  respect  to  direct  taxes  and  VAT  (those 
evading  all  tax  likely  to  be  involved  in  carousel  fraud).  This  measure  targeted  the  detection; 
investigation and prosecution stages of the anti-fraud cycle in the area of shared management. 

Lithuania - e-tool for criminal proceedings 

Lithuania's  Integrated  Information  System  of  Criminal  Proceedings  is  an  e-tool  used  for 
storing,  managing  and  providing  information  related  to  criminal  proceedings.  Officials 
investigating criminal acts are entitled to make online recording and transmission of procedural 
documents, sanction necessary actions and communicate with prosecutors and judges in a fast 
manner to avoid wasting time for the signature, transmissions and sending of documents. The 
system  is  aimed  at  promoting  cooperation  and  coordination  of  law  enforcement  and  other 
institutions. The system stores information on criminal acts collected by pre-trial investigation 
institutions,  instituted  pre-trial  investigations,  conducted  pre-trial  investigations,  data  on  pre-
trial  investigation  cases  and  statistical  information  on  pre-trial  investigations.  The  measure 
targets the prevention, detection, investigation and prosecution stages of the anti-fraud cycle. 

28 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralPreventionSManagement of fundsTo enhance existing measureASingleAFCOS; otherAdministrativeAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionInvestigation and prosecutionShared management and control of EU funds; otherSingleOperationalNRisk indicators; structured cooperation with law enforcement; structured cooperation with judicial authoritiesEnhanced cooperation; targeting of investigations; otherS 
 
 
 
 
 
 
 
 
 
Hungary - Anti-fraud training 

Hungary  organised  training  on  fraud  prevention  and  detection  for  staff  managing  EU  funds 
targeting  the  prevention  and  detection  stages  of  the  anti-fraud  cycle  in  the  area  of  shared 
management.  

  At  the  Prime  Minister's  Office  request  the  National  Tax  and  Customs  Administration’s  Anti-
Fraud  Coordination  Service  (the  Hungarian  AFCOS)  organised  training  courses  for  some 
800 people on ‘Fraud prevention in the field of EU development policy’. 

  Training for new recruits, organised by the Prime Minister’s Office.  
  Training organised for 190 people on ‘Public service ethics and integrity’ in cooperation with 

the National University of Public Service. 

  The  Prime  Minister’s  Office  organised  in-house  training  for  83 people,  introducing  them  to 

integrity systems. 

Hungary - Reinforced co-operation 

Hungary targeted the investigation and prosecution stages of the Anti-Fraud Cycle in the area 
of  financial  crime  by  maintaining  contact  and  exchanging  information  to  make  cooperation 
with  bodies  and  authorities  involved  in  auditing  EU  support  more  successful,  and  making 
‘operational’ cooperation (in individual cases) more effective. 

29 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionOtherSingleOperationalNIT tools ("IT data feeding", "Other IT"); web reporting/hotline; structured cooperation with law enforcement; structured cooperation with judicial authoritiesEnhanced coordination, cooperation and information flow; targeting of investigationsSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionShared management and control of EU funds; otherPackageOrganisationalN/AFraud awareness trainingNeutral on resourcesS 
 
 
 
 
 
 
 
 
Netherlands - Fraud awareness 

Netherlands took a series of actions to increase fraud awareness among staff: 

  Organization of workshops to increase fraud awareness among the staff members by the Dutch 
Public Prosecution Office, and the inspection of the ESF to talk about fraud (with funds).   
  Increasing  awareness  during  work  meetings  on  fraud,  by  for  example,  distributing  OLAF 
documents  amongst  staff  (such  as  ‘detection  of  forged  documents  in  the  field  of  structural 
actions’, and ‘Identifying conflicts of interests in public procurement procedures for structural 
actions – a practical guide for managers’.) 

  The working program includes a file which must be filled in at every check, including a part on 

fraud risks.  

  Staff members participated in a three day anti-fraud training course.  

Austria - Central register of accounts 

Austria  adopted  the  Registration  and  Inspection  of  Accounts  Act  which  requires  the 
establishment of a central register of accounts and deposits for the purposes of tax, fiscal and 
criminal law. The register covers all current, investment and savings accounts and deposits held 
by  Austrians  and  foreigners  at  Austrian  credit  institutions.  This  measure  targeted  the 
prevention, detection, investigation and prosecution, recovery and sanction stages of the anti-
fraud  definition, 
fraud  cycle, 
customs/TOR/illicit trade. 

financial  crime,  organised  crime, 

the  areas  of 

in 

30 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralInvestigation and prosecutionFinancial crime (including money laundering)SingleOperationalNStructured cooperation with law enforcementEnhanced cooperationHAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionFraud definition; shared management and control of EU fundsPackageOrganisationalAGeneral trainingNeutral on resourcesSOperationalNOtherOtherS 
 
 
 
 
 
 
 
  detection and investigation of criminal corruption, where the risk of corruption is highest, with 
an emphasis on investigating criminal offences where the suspects are holders of public office 
and authority.  

  training  of  criminal  investigators  to  acquire  knowledge  of  EU  funds  and  familiarity  with  EU 

institutions in the fight against fraud. 
Improving  the  enforceability  of  (compulsory)  articles  of  the  co-financing  agreement,  which 
must  be  used  for  calls  for  tender  for  European  funding  by  bodies  involved  in  implementing 
cohesion  policy  that  work  in  the  areas  of  labour,  the  family,  social  affairs  and  equal 
opportunities,  economic  development  and  technology,  culture,  public  administration,  justice, 
infrastructure, environment and spatial planning, education, science, sport and health. 

Slovakia - Anti-fraud policy 

Slovakia's  Government  Office  adopted  new  measures  regarding  antifraud  policy.  These 
measures targeted the fraud prevention and detection stages of the anti-fraud cycle in the areas 
of fraud definition, anti-fraud or anticorruption strategy. 

31 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionLegislativeN/A Competences; powers; definition of a specific topic; financial penalties; criminal sanctionsOtherSDetectionAdministrativeNMonitoring/desk checksTo clarify or consolidate existing rulesSInvestigation and prosecutionFinancial crime (including money laundering); organised crime; fraud definition; customs/TOR/illicit tradePackageOrganisationalNCompetence; general training; fraud awareness trainingNeutral on resourcesSRecovery and sanctionOperationalNIT tools ("IT data feeding", "Other IT")Targeting of investigations; enhanced ex-post controlsSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionFraud definition; antifraud or anticorruption strategySingleAdministrativeNManagement of fundsTo clarify or consolidate existing rulesH 
 
 
 
 
 
 
 
Slovakia - Risk indicators 

Slovakia's  Ministry  of  Education,  Science,  Research  and  Sport  adopted  new  measures 
regarding the list of risk indicators. 

Sweden - Anti-fraud training 

Sweden's  SEFI  Council  undertook  a  two-day  visit  to  OLAF  and  the  European  Commission 
(DG  EMPL  and  DG  REGIO),  focusing  on  the  EU’s  strategic  fraud  prevention  work.  Visit 
participants  included  senior  managers  responsible  for  this  area  of  activity  in  the  authorities 
managing  EU  funds  in  Sweden,  a  number  of  experts  from  these  authorities,  representatives 
from the Swedish Government Offices and representatives from the Swedish Economic Crime 
Authority’s operational activities. This measure targeted the fraud prevention stage of the anti-
fraud  cycle  in  the  areas  of  public  procurement,  financial  crime,  organised  crime,  corruption, 
conflict of interest, fraud definition, AFCOS, whistle-blower, shared management. 

3. 

ANTI-FRAUD MEASURES IN REVENUE BY THE MEMBER STATES 

3.1  Fight against customs fraud 

32 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measurePreventionDetectionPublic procurement; conflict of interestSingleOperationalNRisk indicatorsTargeting of checksAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionPublic procurement; financial crime (including money laundering); organised crime; corruption; conflict of interest; fraud definition; AFCOS; whistleblower; shared management and control of EU fundsSingleAdministrativeNManagement of funds, investigation, irregularity reporting, recoveryTo enhance existing measureH 
 
 
 
 
 
 
 
 
 
 
 
Denmark - National risk analysis 

Denmark  implemented  a  measure  targeting  the  fraud  prevention  and  detection  stages  in  the 
area of customs. When risk analysis is carried out in Customs' analysis units, data is included 
from  a  number  of  sources,  mainly  declaration  data  from  the  Customs  System.  The  data  is 
analysed  in  the  IT  systems  "Business  Intelligence"  (BI)  and  Tableau.  Tableau  is  good  at 
visualising  trends  and  deviations  in  import  patterns.  The  process  of  analysing  data,  mainly 
using  declaration  data  in  BI  and  Tableau,  is  a  measure  which  SKAT  introduced  in  2016. 
Greater use of Tableau will support the work of detecting patterns of fraud. 

France - National risk analysis 

France created the Risk Analysis and Targeting Department (SARC - within the Directorate-
General  for  Customs  and  Indirect  Taxation)  in  response  to  new  challenges  in  the  field  of 
security, safety and the fight against fraud. This comes at a time when the flow of tax returns is 
being  dematerialised  and  the  new  Union  Customs  Code  implemented.  It  is  tasked  with 
analysing risks, determining national targeting criteria to be integrated into computing tools to 
facilitate controls, orienting controls and investigations, and fulfilling all requests for analyses 
related  to  fraud.  This  measure  targeted  the  prevention  and  detection  stages  of  the  anti-fraud 
cycle in the area of fraud definition , customs and shared management. 

Italy - National customs risk assessment 

33 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionCustoms/TOR/illicit tradeSingleAdministrativeNMonitoring/desk checksTo enhance existing measureSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionFraud definition; customs/TOR/illicit trade; shared management and control of EU fundsSingleOrganisationalNReorganisation of existing bodies; competence; inter-agency cooperationIncreased resourcesS 
 
 
 
 
 
 
 
 
 
Italy launched an application which makes possible, inter alia, entry of and access to, in real 
time, a set of information concerning the various procedural stages of cases being investigated 
in  connection  with  information  on  cases  of  Own  Resources  fraud.  The  Customs  and 
Monopolies  Agency  therefore  has  real-time  access  to  data  on  additional  own  resources 
assessed,  together  with  other  information  useful  for  operational  and  accounting  management, 
making  it  possible  to  analyse  and  compare  activities  undertaken.  This  measure  targeted  the 
recovery and sanction stages of the anti-fraud cycle in the areas of customs/TOR/illicit trade. 

Austria - National customs control strategy 

Austria adopted a national customs control strategy including cross-cutting measures relating 
to  terrorism,  dual  use  and  proliferation  require  close  cooperation  with  national  licensing 
authorities, the police and the Federal Defence Ministry. This measure targted the prevention, 
detection, investigation and prosecution, recovery and sanction stages of the anti-fraud cycle in 
the areas of financial crime, organised crime, customs, shared management. 

34 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralRecovery and sanctionCustoms/TOR/illicit trade; otherSingleOperationalNIT tools ("IT data feeding", "Other IT")Enhanced information flowSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionTo enhance existing measure; cross-cutting measure, multi-agency measure with impact on various bodiesSOrganisationalN/AReorganisation of existing bodies; inter-agency cooperation; general training; fraud awareness training; simplification of proceduresNeutral on resourcesSRecovery and sanctionOperationalN/AWeb reporting/hotline; risk indicators; increased number of checks; otherEnhanced coordination, cooperation, information flow, ex-ante & ex-post controls; targeting of checks & investigationsSFinancial crime (including money laundering); organised crime; customs/TOR/illicit trade; shared management and control of EU fundsPackageAdministrativeN/AMonitoring/desk checks; on the spot checks; audit checklist; investigation; irregularities reporting; recovey 
 
 
 
 
 
 
 
 
Portugal - National customs risk assessment 

Portugal linked up the entire goods-entry cycle to the national risk database (entry summary 
declaration,  declaration  for  temporary  storage  and  customs  declaration).  To  handle  this  risk-
analysis,  assessment  and  mitigation  work  relating  to  safety,  security  and  financial  fraud,  a 
National  Risk  Assessment  Centre  became  fully  operational;  open  16  hours  a  day,  six  days  a 
week, with increased staff numbers. This measure targeted the prevention and detection stages 
of the anti-fraud cycle in the areas of financial crime, organised crime, smuggling/illlicit trade. 

Slovenia - National customs control strategy 

Slovenia  adopted  a  national  customs  control  strategy,  targeting  the  fraud  prevention  stage  of 
the  anti-fraud  cycle  in  the  areas  of  financial  crime  and  shared  management.  Instructions  on 
reporting  established  irregularities  in  the  field  of  EU  traditional  own  resources  (TOR)  laid 
down  the  procedures  for  reporting  cases  of  fraud  and  irregularities  affecting  TOR  where  the 
amount  at  stake  exceeds  €10,000.  This  includes  a  requirement  to  appoint  national 
coordinator(s)/operator(s)  in  organisational  units,  as  well  as  deadlines  and  procedures  for 
informing coordinators of new cases of fraud and irregularities and of action taken in relation to 
outstanding cases. The instructions also lay down an obligation to check eligibility, to follow 
up  outstanding  cases  and  to  offer  specialist  assistance.  A  training  course  was  organised  on 
account of the introduction of VAT payments on imports. 

3.2  Fight against organised crime and anti-smuggling 

35 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionFinancial crime (including money laudering); organised crime; smuggling/illicit tradePackageOrganisationalReorganisation of existing bodies; competence; simplification of proceduresNeutral on resourcesOperationalIT tools; flagging practice; risk indicators; increased number of checksEnhanced coordination, cooperation & information flow; targeting of checks & investigationsASASAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionFinancial crime (including money laudering); shared management and control of EU fundsPackageOrganisationalAGeneral trainingNeutral on resourcesSOperationalARisk indicators; increased number of checksTargeting of checks & investigationsS 
 
 
 
 
 
 
 
 
 
 
Bulgaria - Fight against organised crime 

Bulgaria's  inter-departmental  coordination  centre  for  combating  smuggling  and  monitoring 
movements  of  high-risk  goods  and  freight,  set  up  at  the  General  Directorate  Combating 
Organised Crime of the Ministry  of the Interior  by Council  of Ministers Decree No 89 of 16 
April 2015 was very active in 2016. The effective cooperation at inter-departmental level and 
the coordination by a single coordination centre of operational activities relating to established 
smuggling and tax abuse ensure that the competent state bodies can take immediate action in 
terms  of  risk  analysis,  identification  of  counter-measures  and  joint  control  activities  to  be 
carried out by law enforcement authorities, the National Revenue Agency, the Customs Agency 
and other public authorities. 

Greece - Anti-smuggling 

Greece amended the National Customs Code to strengthen the fight against the illegal trade in 
tobacco and set up a Coordination Centre for Combatting Smuggling. This measure targeted the 
prevention,  detection,  investigation  and  prosecution  in  the  area  of  customs/TOR/Illicit  trade. 
Greek  legislation  was  harmonised  with  Council  Decision  2009/917/JHA  on  the  use  of 
information  technology for customs purposes. Directive 2014/40/EU on the approximation  of 
the  laws,  regulations  and  administrative  provisions  of  the  Member  States  concerning  the 
manufacture, presentation and sale of tobacco and related products was transposed into Greek 
law.  

Finland - Fight against economic crime 

Finland's customs authority adopted an action plan to combat the shadow economy covering 
the period 2016-2020 in relation to the national strategy for reducing economic crime and the 
shadow  economy.  A  key  objective  is  to  further  improve  risk  management  and  controls  to 
protect  the  EU's  own  resources.  This  measure  targeted  the  fraud  prevention,  detection,  and 
investigation  and  prosecution  stages  of  the  anti-fraud  cycle  in  the  area  of  financial  crime, 
organised crime, whistle-blowers, and customs/TOR/illicit trade. 

36 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionCustoms/TOR/illicit tradeSingleLegislativeN/ACompetences; powers; other administrative penaltiesTo clarify or consolidate existing rules; to remedy flaws; to enforce the rules in line with developments in EU lawS 
 
 
 
 
 
 
 
 
 
3.3  Fight against tax evasion and VAT fraud 

Bulgaria - Fight against tax evasion and VAT fraud 

Bulgaria's  National  Revenue  Agency  (NAP)  implemented  a  project  under  the  Hercule  III 
programme  (OLAF/2016/D1/022)  entitled  "increasing  the  administrative  capacity  of  the 
National Revenue Agency in the field of intra-Community trade by improving the interaction 
between administrations of EU Member States in the fight against tax fraud". 45 officials of the 
National  Revenue  Agency  and  the  National  Agency  for  Tax  Administration  of  Romania 
participated  in  two  workshops  held  under  Action 1,  to  strengthen  cooperation  in  the  fight 
against VAT fraud and in the transport of high risk goods. An agreement was reached to carry 
out joint checks of high risk goods at the border between the two countries.  As a direct effect 
of  the  fiscal  control  activities  carried  out  during  the  last  two  years,  the  National  Revenue 
Agency reports a BGN 1.5 billion increase in the tax base in connection with intra-Community 
acquisitions  declared  by  firms  carrying  out  imports  of  goods  with  high  fiscal  risk.  The  two 
countries agreed  to  carry out  pilot  joint inspections at the border  check points Silistra-Ostrov 
and Danube Bridge 2 Vidin-Calafat, signed a Joint Action Protocol and prepared a three-year 
work programme. 

37 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionFinancial crime (including money laundering); organised crime; whistleblower; customs/TOR/illicit trade; shared management and control of EU fundsPackageAdministrativeAMonitoring/desk checks; on the spot checks; investigation; irregularities reporting; penalty; recoveryCross-cutting measure, multi-agency measure/measure with impact on various bodiesSOrganisationalAInter-agency cooperationNeutral on resourcesSOperationalARisk indicators; structured cooperation with law enforcementEnhanced cooperation, information flow and ex-post controls; targeting of checksS 
 
 
 
 
 
 
 
 
 
 
 
Under Action 2, the National Revenue Agency of Bulgaria and the National Tax and Customs 
Administration  of  Hungary  organised  a  working  visit  to  Hungary  for  a  target  group  of  28 
officials, in order to enhance the mutual exchange of good practices between the two Member 
States  and  to  strengthen  administrative  cooperation  and  exchange  of  operational  information 
for planning and implementing effective national mechanisms in combating fraud affecting the 
financial interests of the European Union. 

Czech Republic - Fight against tax evasion and VAT fraud 

Czech  Republic  reinforced  the  position  of  the  Czech  Customs  Administration  as  a  police 
authority  empowered  to  conduct  criminal  proceedings  in  the  area  of  crimes  linked  to  VAT 
evasion.  Prior  to  that,  the  Customs  Administration  was  only  competent  to  conduct  criminal 
proceedings  relating  to  tax  offences  involving  a  cross-border  element.  The  human  resource 
burden  on  the  Czech  Police  was  reduced  by  making  use  of  the  expertise  of  the  staff  of  the 
Customs Administration in  conducting criminal proceedings. This  measure targeted  the  fraud 
detection, investigation and prosecution stages of the anti-fraud cycle in the areas of financial 
crime and organised crime. 

Ireland - VAT reverse charge 

Ireland introduced the VAT reverse charge for supplies of electricity and gas certificates. The 
reverse  charge  makes  the  recipient  rather  than  the  supplier  accountable  for  the  VAT  on 
supplies. This ensures that the opportunity to generate significant false repayment claims in the 
sector is eliminated. This measure took effect from 1 January 2016 following the enactment of 
the  Finance Bill  2015  and  targeted  the  fraud  prevention  stage  of  the  anti-fraud  cycle  and  the 
area of financial crime. 

38 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionInvestigation and prosecutionFinancial crime (including money laundering); organised crimePackageLegislativeACompetences; powers; criminal sanctionsOtherSOrganisationalNReorganisation of existing bodies; competenceIncreased resourcesS 
 
 
 
 
 
 
 
 
Ireland - Transparency on VAT numbers 

In another related measure also targeting the fraud prevention stage of the anti-fraud cycle and 
the area of financial crime, Ireland gave the Revenue Commissioners the power to publish the 
fact that a person's  VAT number has  been cancelled to advise a person's supplier of the fact. 
This  measure  took  effect  in  January  2016  after  the  enactment  of  the  Finance  Bill  2015 
(December 2015). 

Lithuania - Fight against tax evasion 

Lithuania's  State  Tax  Inspectorate  is  currently  developing  the  Smart  Tax  Administration 
System (i.MAS) in  order  to  increase the efficiency of tax administration and detection of  tax 
fraud and fraudulent transaction as well as to reduce the taxpayer's burden. The i.MAS consists 
of 7 subsystems: e-invoice system (i.SAF); e- waybill system (i.VAZ); analysis, modelling and 
risk  management  subsystem  (i.  MAMC);  smart  cash  registers  (i.EKA);  applied  accounting 
system  (i.APS);  standard  audit  file  for  tax  purposes  (i.SAF-T)  and  smart  control  (i.KON).  i. 
SAF and i.VAZ have been already put into operation as of October 2016. This measure targets 
the prevention and detection stage of the anti-fraud cycle with the objective of improving tax 
administration  and  tax  collection  and  reducing  the  taxpayer's  burden.  It  will  enable  faster 
detection of tax fraud chains and fraudulent schemes. 

39 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralPreventionFinancial crime (including money laundering)SingleLegislativeNOtherOtherSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralPreventionFinancial crime (including money laundering)SingleLegislativeNPowersOtherS 
 
 
 
 
 
 
 
 
Latvia - Fight against tax evasion 

Latvia introduced amendments on the Law on Taxes and Duties and amendments on the Value 
Added  Tax  Law.  The  State  Revenue  Service  has  the  right  to  remove  the  domain  name  of 
unregistered  economic  activity  or  failure  to  identify  themselves  when  conducting  business 
activities, as well as operating the suspension of the case; request to the web hosting service the 
termination (suspension) if the law is violated; and refuse to re-register the domain name of the 
taxpayer,  if  the  tax  audits  is  planned.  In  addition,  the  reverse  VAT  payment  procedure  now 
applies to mobile phones, tablets, laptops and integrated circuit devices; Cereals and industrial 
crops  deliveries  and  precious  metal  supplies.  This  measure  targets  the  fraud  prevention  and 
fraud detection stages of the anti-fraud cycle. 

Poland - Fight against VAT fraud 

Poland adopted relevant amendments in the area of accounting for VAT on intra-Community 
purchases  of  motor  fuels  in  an  Act  of  7  July  2016  amending  the  VAT  Act  and  certain  other 
acts.  This measure targeted the prevention stages of the anti-fraud cycle, in the area of customs. 
VAT must now be paid within five days of the day of entry of the motor fuel into Poland, an 
additional  declaration  must  be  submitted  for  intra-Community  purchases  of  motor  fuels,  and 
tax warehouse keepers and registered consignees are now liable for the VAT. 

40 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionOtherSingleOperationalNIT tools; web reporting/hotline; risk indicators; increased number of checks; structured cooperation with law enforcementEnhanced information flow; targeting of checksSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionDetectionOtherSingleLegislativeACompetences; powers; other admnistrative penaltiesTo remedy flawsH 
 
 
 
  
 
 
 
 
4. 

SECTORAL ANTI-FRAUD POLICIES, MEASURES AND RESULTS BY MEMBER STATES - 
EXPENDITURE 

4.1  Agriculture  

Germany - Anti-fraud training 

Germany  participated  in  five  seminars  on  ‘Fraud  prevention  within  the  framework  of  the 
CAP’,  run  by  the  Commission's  Directorate-General  for  Agriculture  and  Rural  Development 
with a total of 420 officials from the paying agencies. This administrative measure targeted the 
fraud prevention and detection stages of the anti-fraud cycle in the areas of shared management 
and control of EU funds, anti-fraud or anti-corruption strategy. 

Greece - Fraud prevention 

Greece established procedures for preventing and combatting fraud in management and control 
systems for the following programmes: 

  Rural  Development  Programme  for  Greece  2014-2020  (Ministerial  Decision  1065/2016, 

Government Gazette, Series II, No 1273/4-5-2016)  

  National Programmes of the Asylum, Migration and Integration Fund and the Internal Security 
Fund 2014-2020 (Ministerial Decision 82350/2016, Government Gazette, Series II, No 2451/9-
8-2016). prevention and detection, area – shared management 

41 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measureHorizontal / sectoralPreventionCustoms/TOR/illicit tradeSingleLegislativeADefinition of a specific topicTo remedy flawsSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionSSAdministrativeOperationalOtherTargeting of checks & investigations; enhanced ex-post controlsManagement of funds; monitoring/desk checks; on the spot checksRisk indicators; increased number of checksNNShared management and control of EU funds; antifraud or anticorruption strategyPackage 
 
 
 
 
 
 
 
 
 
 
Luxembourg - Detecting fraud in agriculture 

Luxembourg's Ministry of Agriculture, the managing authority for the European Agricultural 
Fund  for  Rural  Development  and  the  European  Agricultural  Guarantee  Fund,  created  the 
"Procedure  and  Special  Investigations  service    -  service  Procédure  et  Enquêtes  Particulières 
(PEP)", whose mission is to prevent fraud cases. This measure targeted the detection phase of 
the  anti-fraud  cycle  in  the  area  of  fraud  definition,  control  of  EU  funds,  anti-fraud  or  anti-
corruption strategy. 

Poland - Fraud risk analysis for agriculture 

In  Poland,  an  ordinance  of  the  President  of  the  Agency  for  Restructuring  and  Modernisation 
concerned the adoption of a policy for the fight against financial fraud in the Agency (ARiMR). 
The instrument is intended to optimise the fight against fraud by extending fraud risk analysis 
to  the  departments  responsible  for  keeping  the  national  register  of  agricultural  producers  and 
for  field  inspections.  This  measure  targeted  the  prevention  and  detection  stages  of  the  anti-
fraud cycle in the area of shared management.  

42 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetection Shared management and control of EU fundsSingleAdministrativeNEligibility criteria; management of funds; monitoring/desk checks, irregularities reporting, recoveryTo enhance existing measuresSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionFraud definition;  control of EU funds; antifraud or anticorruption strategySingleOrganisationalNReorganisation of existing bodies; interagency cooperation; simplification of proceduresIncreased resourcesS 
 
 
 
 
 
 
 
 
Slovenia - Computerised accounting system 

Slovenia developed a computerised accounting system (e-CA) for the certifying authority (MF-
SUSEU/CA).  Instructions were  issued for the recovery  of designated EU funds for the 2014-
2020  programming  period;  and  the  risk  register  was  updated.  Agriculture  in  Slovenia 
(ARSKTRP)  contributed  to  the  amendment  of  the  Agriculture  Act  (Zkme-1,  currently  at  the 
coordination  stage),  which  includes  additional  provisions  on  non-compliance  with  or 
infringement of obligations. The definition of infringements is more detailed, and in accordance 
with  EU  law,  negligence  is  included  as  a  form  of  inadmissible  conduct,  new  legal  bases  are 
introduced  for  annulling  decisions  where  no  data  or  false  data  is  submitted  and  a  special 
processing  procedure  has  been  introduced  for  applications  where  there  is  a  suspicion  of 
irregularity.  
In  2016  ARSKTRP  held  training  courses  for  employees  and  managers  on  the  system  for 
preventing fraud and artificial creation of conditions. Employees at the Ministry of Agriculture, 
Forestry  and  Food  underwent  training  on  the  system  for  detecting  and  preventing  fraud.  A 
manual of fraud indicators was produced in 2015 and in 2016 it was supplemented and updated 
by incorporating  practical examples from the past. The list of administrative checks was also 
added to, with the inclusion of questions relating to suspicion of fraud. 

43 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionShared management and control of EU fundsSingleOperationalAFlagging practice; risk indicators; increased number of checksTargeting of checksS 
 
 
 
 
 
Slovakia - New internal procedures and checklists 

Slovakia's  Ministry  of  Agriculture  and  Rural  Development  adopted  new  internal  procedures 
and  checklists  reflecting  amendments  of  respective  legislation  (mainly  in  area  of  public 
procurement and verification of eligibility of expenditures). 

United Kingdom - Anti-fraud strategies 

The four United Kingdom paying agencies each have their respective anti-fraud strategies in 
place based on their own risk evaluations. The aim is to reduce the risk of fraud to an absolute 

44 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionAdministrativeAManagement of funds; monitoring/desk checks; on the spot checks; recoveryTo clarify or consolidate existing rules; enhance existing measures; cross-cutting measure, multi-agency measure, measure with impact on various bodiesSDetectionInvestigation and ProsecutionRecovery and SanctionOperationalAIT tools; web reporting/hotline; risk indicators; increased number of checks; structured cooperation with judicial authorities; otherEnhanced coordination, co-operation, information flow; targeting of checks; enhanced ex-ante & ex-post controls; otherSSOrganisationalAGeneral training; fraud awareness trainingIncreased resourcesPackagePublic procurement; financial crime; fraud definition; AFCOS; shared management; otherAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionRecovery and sanctionOperationalNRisk indicators; increased number of checksEnhanced coordination and cooperation; enhanced ex-post controlsSTo clarify or consolidate existing rules; to enhance existing measureSAdministrativePublic procurement; conflict of interest; control of EU funds.PackageAOn the spot checks; audit checlistPrevention 
 
 
 
 
 
 
 
 
 
 
minimum. Safeguarding CAP funds is a key element of the strategic approach to prevent fraud. 
These  strategies  continued  to  be  reviewed,  renewed  as  needed  and  updated  through  2016. 
Antifraud  strategies  are  reviewed  annually  and  signed  off  at  senior  level  in  accordance  with 
corporate  governance  requirements  and  consistent  standards  across  UK  government 
departments. 

4.2 

 COHESION POLICY AND FISHERIES  

Belgium - Conflict of interest 

In  Belgium,  a  request  was  made  to  all  legal  and  natural  persons  involved  in  a  procurement 
procedure to sign a statement declaring the absence of conflict of interest. This request has also 
been made to ERDF beneficiaries in Wallonia. This measure is also applicable to Flanders; and 
will soon be put in place in the ERDF Brussels Capital Region.  

Bulgaria - Administration of irregularities 

Bulgaria adopted a Regulation on the administration of irregularities concerning the European 
Structural and Investment Fund, by Council of Ministers Decree No 173 of 13 July 2016. The 

45 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measure / expected resultsHorizontal / sectoralPreventionDetectionOtherFlagging practice; risk indicatorsAOperationalSPackagePublic procurement; shared management and control of EU funds; other. Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionOtherSingleLegislativeAOtherTo enforce the rules in line with developments in EU law, to (partially) transpose European directives and curb tax avoidance via tax havens; otherS 
 
 
 
 
 
 
 
 
 
 
 
 
Regulation  governs  relations  under  public  law  concerning  the  administration  of  irregularities 
involving the European Structural and Investment Funds (ESIF). This legal measure targets the 
fraud prevention and detection stages of the anti-fraud cycle in the area of control of EU funds. 

Bulgaria - ARACHNE 

Bulgaria  also  approved  a  procedure  in  connection  with  the  provision  of  access  to  the  risk 
scoring tool of the European Commission in the field of fraud and irregularities, ARACHNE, 
pursuant  to  Order  No R-249/02.12.2015  of  the  Deputy  Prime  Minister  for  EU  Funds  and 
Economic  Policy.  ARACHNE  is  fed  with  information  already  in  place  and  available  in  the 
Information  System  for  Management  and  Monitoring  of  the  EU  Structural  Instruments  in 
Bulgaria (ISUN and ISUN 2020). In 2016, 51 users from all Managing Authorities were given 
access (via individual profiles) to ARACHNE. This measure targets the  fraud prevention and 
detection  stages  of  the  anti-fraud  cycle  in  the  area  of  public  procurement,  conflict  of  interest 
and shared management. 

Denmark - Managing suspected fraud 

Denmark drafted of an internal procedure for managing cases where there is a report of fraud, 
or where there is suspected fraud involving EU Structural Funds. 

46 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionShared management and control of EU funds; other.SingleLegislativeNCompetences; powersTo clarify or consolidate existing rules SAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionPublic procurement; conflict of interest; shared management and control of EU fundsSingleOrganisationalNIT tools; risk indicators; increased number of checksEnhanced information flow; targeting of checks; enhanced ex-ante controlsS 
 
 
 
 
 
 
 
 
 
 
Germany - ESF management and control systems - Self-assessment of fraud risks 

Germany  defined  the  Management  and  Control  Systems  for  the  implementation  of  its 
operational  programme  for  the  European  Social  Fund  (ESF)  in  accordance  with  Regulation 
(EU)  No 1301/2013  of  17 December 2013  and  Regulation 
(EU)  No 1304/2013  of 
17 December 2013  and  Regulation  (EU)  No 1304/2013  of  17 December 2013.  This  measure 
targeted  the  prevention,  detection,  recovery  and  sanction  stages  of  the  anti-fraud  cycle  in  the 
area of shared management. 

Germany  produced  a  self-assessment  of  fraud  risks  relating  to  the  planned  operational 
programme,  as  recommended  in  the  European  Commission  guidelines,  by  the  Managing 
Authority  of  the  European  Regional  Development  Fund  (ERDF).  This  measure  targeted  the 
prevention and detection stages of the anti-fraud cycle in the areas of public procurement and 
conflict of interest.  

47 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReason for  measureHorizontal / sectoralInvestigation and prosecution OtherSingleAdministrativeNMonitoring/desk checksTo clarify or consolidate existing rulesSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionAdministrativeNEligibility criteria; management of funds; monitoring/desk checks; on the spot checks, audit checklist, irregularities reporting; recoveryTo clarify or consolifate existing rulesSDetectionRecovery and SanctionOperationalNIT tools; risk indicators; increased number of checksEnhanced coordination, cooperation and information flow; targeting of checks and investigationsSSShared management and control of EU fundsPackageOrganisationalNReorganisation of existing bodies; competence; interagency cooperationIncreased resources 
 
 
 
 
 
 
 
Estonia - Risk assessment and analyses 

In Estonia the implementing system, including different level entities and managing authorities, 
focused  more  on  the  risk  of  measures  /  projects,  awareness-raising  among  officials  and 
cooperation:  
- simple procurement procedures are directed into the E-Procurement Estonia;  
- a 'red flag' system is used for projects;  
- all counterparts participate in the joint training courses and joint discussions.  

This  measure  targets  the  prevention and  detection  stage  of  the  anti-fraud  cycle  in  the  area  of 
shared management (agriculture and cohesion policy). 

Ireland - ERDF anti-fraud measures 

Ireland  implemented  anti-fraud  measures  for  ERDF  operational  programmes.  As  required 
under EU Regulation 1303/2013 governing the ESI Funds, Managing Authorities must put in 
place effective and proportionate anti-fraud measures. These have been introduced for the two 
regional OPs in Ireland as part of their management and control systems. They include an anti-
fraud policy, fraud assessment procedures and a risk register. The Commission's anti-fraud data 
mining tool - Arachne will also be used under this funding round and has been referred to in the 

48 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionPublic procurement; corruption; conflict of interest; otherSingleAdministrativeNManagement of funds; investigationOtherSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionTo enhance existing measureSOrganisationalAInter-agency cooperation; general trainings; fraud awareness trainings; simplification of proceduresNeutral on resourcesSShared management and control of UE fundsPackageAdministrativeAEligibility criteria; management of funds; montoring/desk checks; on the spot checks; audit checklist; irregularities reporting; recovery 
 
 
 
 
 
 
 
 
 
anti-fraud  policy.  This  measure  targets  the  prevention  and  detection  stages  of  the  anti-fraud 
cycle  in  the  areas  of  public  procurement,  corruption,  conflict  of  interest,  AFCOS,  shared 
management and control of EU funds. 

Portugal - Beneficiary information system 

Portugal  rolled-out  and  updated  the  suitability,  reliability  and  debt  information  system  for 
cohesion policy funds (European Regional Development Fund (ERDF), European Social Fund 
(ESF) and the Cohesion Fund), which includes information on bodies applying for aid and aid 
beneficiaries under the European Structural and Investment Funds (ESIF). For each beneficiary 
or  potential  beneficiary,  any  factors  that  would  prevent  the  granting  of  aid,  or  which  would 
make  it  subject  to  conditions,  are  entered  into  the  system,  using  own  coding.  This  measure 
targeted  the  fraud  prevention  stage  of  the  anti-fraud  cycle  in  the  areas  of  conflict  of  interest, 
control of EU funds, and anti-fraud or anti-corruption strategy. 

Croatia - Irregularity management 

Croatia's Minister of Finance adopted guidelines on Irregularity Management in the context of 
Structural instruments and ESI Funds drafted by the Service for Combating Irregularities and 
Fraud.  According  to  Article  5(3)a  of  the  Regulation  on  the  Institutional  Framework  of  the 
System for Combating Irregularities and Fraud (OG 144/2013), Irregularity Reporting System 
bodies are obliged to follow procedures which are described within the Guidelines concerned. 

49 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionRecovery and sanctionPublic procurement; corruption; conflict of interest; AFCOS; shared management and control of EU fundsSingleAdministrativeNEligibility criteria; management of funds; monitoring/desk checks; on the spot checks; audit checklist; irregularities reporting; recoveryTo clarify or consolidate existing rules; to enhance existing measures; otherSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionConflict of interest; control of EU funds;  Antifraud or anticorruption strategySingleOperationalAIT tools; flagging practice; risk indicators; structured cooperation with judicial authoritiesEnhanced cooperation; information flow; ex-ante & ex-post controlsS 
 
 
 
 
 
 
 
 
 
The  purpose  of  the  guidelines  is  to  prescribe  procedures  for  prevention,  detection  treatment, 
reporting and follow up of established irregularities related to the use of Structural instruments 
and ESI Funds. This measure targets the fraud prevention and detection stages of the anti-fraud 
cycle in the area of AFCOS. 

Italy - Preventing fraud in fisheries 

Italy  introduced  a  more  appropriate  range  of  penalties  for  illegal  fishing  in  order  to  restore 
credibility to the system by enhancing the preventive function of punishments. In particular, the 
possession,  landing,  transshipment,  carriage  and  marketing  of  undersized  fish  species 
(‘juveniles’)  was  decriminalized.  Law  No  154/16  (delegations  to  the  Government  and  further 
dispositions  in  subject  of  simplification,  rationalization  and  competitiveness  of  the  sectors 
agricultural and agro-food, as well as sanctions in subject of illegal fishing) amends Legislative 
Decree  No  4/2012  (the  reference  legislation  in  the  field).  Administrative  fines  exist  for 
unlawful  acts  ranging  from  EUR 1 000  to  EUR 75 000,  which  are  doubled  in  the  event  of 
offences  concerning  bluefin  tuna  and  swordfish.  For  fishing,  marketing  and  purveyancing  of 
undersized fishing products of the latter two species, additional penalties have been laid down, 
such as suspension of the fishing licence for three to six months and withdrawal in the event of 
repeat offences. 

50 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionAFCOS; otherSingleAdministrativeAIrregularity reportingTo enhance existing measureSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionOtherSingleLegislativeAFinancial penaltiesTo clarify or consolidate existing rulesS 
 
 
 
 
 
 
 
 
 
 
 
Cyprus - Fraud Risk Self-Assessment Tool 

Cyprus  established the Certified  Authority within  the Treasury of the Republic of Cyprus as 
regards  ESIF  and  the  Food  and/or  Basic  Material  Assistance  Programme.  The  Authority  has 
applied  the  EU  Fraud  Risk  Self-Assessment  Tool  in  respect  of  the  Fund  Management  and 
Control System and the impact of specific fraud scenarios. Memoranda, instructions, guidelines 
and  an  action  plan  will  be  drafted.  Procedures  for  various  bodies  (IB/MA)  to  report 
irregularities,  sanctioning,  and  recovering  sponsorship  are  applied.  Also,  application  of 
procedures by the Certified Authority of the Treasury of the Republic of Cyprus is followed in 
respect of public contracts. 

Luxembourg - ARACHNE 

Luxembourg has recommended testing of the Arachne tool to the ERDF managing authority in 
view  of  a  possible  adoption  of  the  tool.  This  measure  targets  the  detection  stage  of  the  anti-
fraud  cycle  in  the  area  of  conflict  of  interest  and  fraud  definition.  The  European  Regional 
Development Fund's Management Authority, the Ministry of Economics, and European Social 
Fund's  Managing  Authority,  the  Ministry  of  Labour,  are  both  currently  implementing  and 
testing  the  Arachne  tool.  If  it  reveals  to  be  sufficient  in  matters  of  data  (for  Luxembourg),  it 
would  be  installed  definitively.  For  now,  only  one  user  in  each  Ministry  is  testing it, in  tight 
collaboration  with  the  Commission's  services.  The  use  of  Arachne  would  help  to  identify 

51 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionTo enhance existing measure; cross-cutting measure, multi-agency measure/measure with impact on various bodiesSPublic procurement; corruption; conflict of interest; fraud definition; AFCOS; control of EU funds; otherPackageAdministrativeNEligibility criteria; management of funds; monitoring/desk checks; on the spot checks; audit checklist; irregularities reporting; penalty; recoveryRecovery and sanctionOrganisationalNReorganisation of existing bodies; competence; general trainings; fraud awareness trainings; simplification of proceduresDecreased resourcesEnhanced coordination, cooperation and information flow; ex-ante controls; targeting of checksRisk indicators; structured cooperation with law enforcementAOperationalSS 
 
 
 
 
 
 
possible  conflict  of  interests  (beneficiary  versus  supplier,  for  example),  and/or  possible 
suppliers that have  or  are  still facing financial or  legal problems. Monitoring  this data would 
help to eliminate future issues with the beneficiary supply chain. 

Luxembourg - Fraud Risk Self-Assessment Tool 

Luxembourg implemented a fraud prevention measure in the field of public procurement for 
ESPON (European territorial observation network). Following the risk analysis implemented at 
programme  level,  it  was  detected  that  one  of  the  major  areas  of  risk  consisted  in  the 
implementation of public procurement by the Single Beneficiary of the Programme. A series of 
provisions  were  therefore  established  and  the  Single  Beneficiary  was  asked  to  comply.  The 
Managing Authority requested the Single Beneficiary to report on the implementation of these 
measures  and  implemented  additional  checks  to  verify  their  efficacy  and  efficiency.  This 
measure targeted the prevention stage of the anti-fraud cycle in the area of public procurement 

Malta - Irregularity reporting 

Malta set up an Irregularity Reporting Sub-group within AFCOS Malta (IAID) in the second 
half of 2016. Two quarterly meetings were held on 11 July and on 1 November with officers 
from the Managing Authorities of Structural, Cohesion and Solidarity Funds and officers from 
the  Agriculture  and  Rural  Payments  Agency.  This  measure  targeted  the  fraud  detection, 
recovery and sanction stages of the anti-fraud Cycle and the Areas of fraud definition, AFCOS, 
shared management, and anti-fraud/anticorruption strategy. 

52 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionConflict of interest; fraud definitionPackageHAdministrativeOperationalNNMonitoring/desk checksIT toolsOtherEnhanced information flow; ex-ante controls & ex-post controlsAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralDetectionRecovery and sanctionHTo enhance existing measureAIrregularities reporting; recoveryFraud definition; AFCOS; shared management and control of EU funds; antifraud or anticorruption strategySingleAdministrative 
 
 
 
 
 
 
 
 
Netherlands - ARACHNE 

Netherlands decided to carry out a second pilot of Arachne, following the positive results of 
the first pilot.  This measure targets the prevention and detection stages of the anti-fraud cycle 
in the area of shared management. Netherlands also carried out a Fraud Risk Assessment for 
ERDF in June 2015. The results, conclusions and findings were set out in a final note discussed 
in  September 2016  in  a  consultation  with  all  the  parties  concerned.  It  was  agreed  in  the 
consultation to carry out the Fraud Risk Assessment every two years, with the next one due in 
the first quarter of 2017. The European Commission has drawn up an anti-fraud directive for 
the 2014-2020 programming period. The Member State must ensure that its measures comply 
with the Directive. For the designation audit and subsequent system audit, the audit authority 
has  established  that  the  system  is  working,  with  a  few  improvements  being  necessary.  As  a 
result of this Directive, the management authority has, for example,  appointed a fraud officer 
and a fraud risk assessment is carried out every year. 

Austria - Verification procedure 

Austria carried out numerous verifications pursuant to Article 125(4) of Regulation 1303/2013 
for  the  2014-2020  programming  period  to  prevent  irregularities.  The  verification  procedure 
allows  the  administrative  bodies  to  check  all  the  expenditure  submitted  by  the  beneficiary. 
Random  checks  are  planned  in  relation  to  overheads.  A delegated  act  supplementing 
Regulation  1303/2013  was  adopted  by  the  Commission  on  8 July  2015  with  regard  to  the 
procedure for the notification of irregularities. The purpose is to monitor and ensure the proper 
use of funds and the notification of irregularities identified. 
Formal  requirements  in  the  national  rules  on  eligibility  and  in  the  management  and  control 
system should increase efficiency. Standardised forms (check-lists) improve the quality of the 
accounts  submitted.  Standardised  forms  have  also  been  developed  for  the  calculation  of 
personnel  costs  in  order  to  increase  transparency  and  clarity.  The  entire  funding  operation, 
including the accounting process, is stored in a central database. In addition, the Arachne data-
mining  tool,  provided  by  the  Commission,  is  used  for  risk  evaluation  and  risk  analysis.  This 
measure  targeted  the  prevention,  detection;  recovery  and  sanction  stages  of  the  anti-fraud 

53 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionShared managementSingleOperationalNIT toolsEnhanced ex-ante and ex-post controlsS 
 
 
 
 
 
 
 
cycle, in the areas of conflict of interest, shared management and anti-fraud or anti-corruption 
strategy. 

Poland - IT tools in Public Procurement 

Poland set up and put into operation the Competition Database (Baza Konkurencyjności), an 
IT  tool  for  the  implementation  of  competition  rules  as  regards  the  eligibility  of  expenditure 
under the ERDF, ESF and CF programmes in the period 2014-20. The Database is web-based 
and  intended  for  posting  calls  for  tenders.  It  has  been  launched  with  a  view  to  ensuring 
compliance  with  rules  on  competition  and  the  transparency  of  procurement  procedures  not 
covered  by  the  Public  Procurement  Act.  This  measure  is  expected  to  increase  the  number  of 
tenders in  procurement procedures not  covered by public procurement legislation resulting in 
particular  in  lower  prices,  greater  transparency  of  such  procedures  and  enhanced  public 
scrutiny. This measure targets the prevention stage of the anti-fraud cycle in the area of public 
procurement and shared management. 

Slovenia - Computerised accounting system 

Slovenia's Ministry of Finance and Department for Management of EU Funds (MF-SUSEU), 
developed  a  computerised  accounting  system  (e-CA)  for  the  certifying  authority  (MF-
SUSEU/CA);  issued  instructions  for  the  recovery  of  designated  EU  funds  for  the  2014-2020 
programming period; and updated the risk register. The e-CA application serves to verify data 
in requests for payments from EU funds, maintain accounting records of requests submitted to 

54 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionConflict of interest; shared management; antifraud or anticorruption strategyPackageAdministrativeAEligibility criteria; management of funds; on the spot checks; irregularity reporting; recoveryCross-cutting measure, multi-agency measure/ measure with impact on various bodies; otherSOperationalNIT tools; otherEnhanced information flow; targeting of checksAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionPublic procurement; shared managementSingleOrganisationalNIT toolsEnhanced information flow; otherS 
 
 
 
 
 
 
 
 
 
the European Commission and keep records of repayments made to the national budget from 
EU  funds.  The  application  incorporates  key  Commission  rules  and  requirements  for  auditing 
expenditure.  At  the  same  time  the  application  also  includes  checks  by  the  CA  to  uncover 
potential irregularities before the EU contribution is paid to the national budget and before the 
statement of expenditure to be sent to the Commission is drawn up. This measure targets the 
prevention, detection, investigation and prosecution stages of the anti-fraud cycle in the areas 
of procurement, financial crime, definition, AFCOS and shared management. 
In  a  cross-cutting  measure,  the  enforceability  of  (compulsory)  articles  of  the  co-financing 
agreement  are  improved.  These  must  now  be  used  for  European  funding  calls  for  tender  by 
bodies involved in implementing cohesion policy in the areas of labour, family, social affairs 
and equal opportunities, economic development and technology, culture, public administration, 
justice,  infrastructure,  environment  and  spatial  planning,  education,  science,  sport  and  health. 
The  scope  for  recovering  funds  where  there  are  ineligible  costs  arising  from  identified 
irregularities  is  increased  and  the  prevention  and  detection  of  irregularities  (including  fraud) 
against EU funds/cohesion policy is strengthened. 

Finland  Anti-fraud training 

Finland organised anti-fraud training for the national authorities responsible for managing EU 
structural  funds  and  agricultural  funds.  The  managing  authority  of  the  structural  funds 
organised  training  for  the  intermediate  bodies  at  both  national  and  regional  level.  The 
intermediate  bodies  also  included  fraud  risk  assessment  in  the  risk  evaluation  of  the 
management and control system. Specific anti-fraud training was also organised for the EMFF 
authorities and the training activities continued with the EU paying agencies in the agricultural 
aid  and  rural  development  funds.  This  measure  targeted  the  fraud  prevention,  detection, 

55 

Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionAdministrativeAManagement of funds; monitoring/desk checks; on the spot checks; recoveryTo clarify or consolidate existing rule; to enhance existing measures; cross cutting measure with impact on various bodiesSDetectionInvestigation and prosecutionRecovery and sanctionOperationalAIT tools; web reporting; risk indicators; increased number of checks; structured cooperation with judicial authorities; other. Enhanced co-ordination, cooperation and information flow; targeting of checks; enhanced ex-ante controls and ex-post controlsSPublic procurement; financial crime; fraud definition; AFCOS; shared management; otherPackageOrganisationalAGeneral training; fraud awareness trainingIncreased resourcesS 
 
 
 
 
 
investigation and prosecution, recovery and sanction stages of the anti-fraud cycle in the area 
of shared management. 

Sweden Economic crime and risk analysis 

Sweden's SEFI Council is made up of nine authorities working for the protection of the EU’s 
financial  interests  in  Sweden.  The  Economic  Crime  Authority  is  responsible  for  the  SEFI 
Council’s offices and during the year it visited three different managing authorities to inform 
the  management  and  staff  of  the  Council’s  work.  The  Economic  Crime  Authority  has  also 
carried  out  fraud  prevention  training  events  at  four  managing  authorities.  The  meetings  and 
training  events  of  the  Economic  Crime  Authority  have  promoted  active  fraud  prevention  in 
several  authorities  and  stressed  the  importance  of  reporting  suspected  crime.  This  measure 
targeted the fraud prevention, detection, investigation and prosecution of the anti-fraud cycle in 
the area of shared management.  

Sweden's managing authorities for the ESF and the ERDF adopted their respective policies and 
strategies for combating fraud, based on the Commission’s guidance on crime prevention. Risk 
assessment teams were also set up to conduct risk analyses and draw up action plans based on 
these  analyses.  This  measure  targeted  the  fraud  prevention  and  detection  stages  of  the  anti-
fraud cycle in the area of shared management. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionRecovery and sanctionShared management and control of EU fundsPackageOrganisationalAFraud awareness trainingsNeutral on resourcesSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionInvestigation and prosecutionShared management and control of EU fundsPackageAdministrativeNManagement of funds; o the spot checks; investigation; irregularities reportingTo clarify or consolidate existing rules; to enhance existing measure; cross-cutting measure, multi-agency measure/measure with impact on various bodiesS 
 
 
 
 
 
 
 
 
United Kingdom ARACHNE 

United  Kingdom  implemented  several  regional  anti-fraud  measures.  The  European  Regional 
Development Fund Operational Programme for England – Anti-Fraud Policy was published in 
2016. In order to detect fraud, the Managing Authority uses IT tools (e.g.ARACHNE) to detect 
risks  and  ensures  that  staff  are  aware  of  fraud  risks  and  receive  anti-fraud  training.  Prompt 
reviews of all cases of suspected fraud are carried out promptly to enable improvements to the 
internal  management  and  control  system,  including  recommendations  from  the  Government 
Internal  Audit  Authority.  Best  practice  is  regularly  reviewed  at  cross-departmental  meetings. 
This  measure  targeted  the  fraud  prevention  and  detection  stage  of  the  anti-fraud  cycle  in  the 
area of shared management. 

The Welsh European Funding Office (WEFO) formally adopted ARACHNE in early 2015 and 
continued  use  through  2016.  It  is  a  powerful  risk-scoring  tool  generating  more  than  100  risk 
indicators sorted into specific categories designed to strengthen WEFO’s ability to detect and 
prevent errors, irregularities and incidences of fraud amongst beneficiaries, their operations and 
procured delivery of EU funded activities. ARACHNE is further enriched by data provided by 
WEFO from its operational programmes on a monthly basis. WEFO’s use of ARACHNE adds 
another layer to the minimum standards set out by the Welsh Government’s GCoE to minimise 
errors  and  fraud  in  managing  its  programmes  and  has  been  integrated  into  its  Statement  of 
Management Controls. ARACHNE is now part of WEFO’s standard due diligence processes at 
the  appraisals  stage  of  development  for  all  operations  and  is  also  used  by  the  MVT  for  pre-
planning of their inspection visits. It therefore plays a key part of work undertaken by TFAT 
who are responsible for carrying out investigations, reviews and other ad-hoc work. 

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Anti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionShared management and control of EU fundsPackageAdministrativeN Irregularities reportingTo clarify or consolidate existing rules; to enhance existing measureOrganisationalN OtherNeutral on resourcesSSAnti-fraud cycle stepsArea coveredSingle / PackageType of MeasureNew / AmendmentScopeReasons for  measure / expected resultsHorizontal / sectoralPreventionDetectionPublic procurementPackageOperationalAFlagging practice; risk indicatorsOtherS 
 
 
 
 
 
 
 
The existing processes set out by the GCoE and the use of ARACHNE is complimented by a 
specific  WEFO  Anti-Fraud  Risk  Register  developed  as  required  by  EC  regulations.  The  risk 
register, one of five used by WEFO, is managed by a group that meets periodically to review 
existing controls and assess their effectiveness. Additional controls are introduced if the net risk 
is  considered  too  high.  The  register  is  based  on  a  template  register  created  by  the  EC  and 
adapted  to  fit  to  WEFO’s  controls.  It  focuses  primarily  on  procurement  processes  as  this  is 
considered to be the area where the risk of fraud is high. This is consistent with our experience 
over  recent  years,  particularly  with  organisations  in  the  Third  Sector.  For  that  reason,  in 
addition to the controls in the template register WEFO have placed an emphasis on operations 
being run in the Third Sector and have introduced Interim Reviews of the beneficiaries twice 
annually during the operational stage of the operation. 

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