COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL AND THE COUNCIL Tenth progress report towards an effective and genuine Security Union
Date: 2017-09-07
Institutions: Directorate-General for Migration and Home Affairs, European Commission
Subjects: European security, Schengen Information System, computer crime, cross-border cooperation, exchange of information, external border of the EU, extremism, organised crime, personal data, terrorism

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 7.9.2017  COM(2017) 466 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL AND THE COUNCIL Tenth progress report towards an effective and genuine Security Union  
 
 
I. 

INTRODUCTION 

This  is  the  tenth  monthly  report  on  the  progress  made  towards  building  an  effective  and 
genuine Security Union and covers developments under two main pillars: tackling terrorism 
and  organised  crime  and  the  means  that  support  them;  and  strengthening  our  defences  and 
building resilience against those threats.  

In recent weeks, Europe has once again been hit by a number of terrorist attacks. On 9 August 
2017, a car was driven into a military patrol vehicle in Levallois-Perret, Paris and injured 6 
soldiers. On 17 August 2017, in Barcelona, a van was used to kill 15 people and injure more 
than  a  hundred  on  Las  Ramblas.  On  18  August  2017,  a  man  stabbed  ten  people  in  Turku, 
Finland and two of them died. On  25 August 2017, a  man  attacked soldiers with  a knife in 
Brussels and injured two. On the same day, a man attacked policemen in front of Buckingham 
Palace  in  London  with  a  sword.  These  attacks  once  again  highlight  the  vital  importance  of 
fighting violent extremism and radicalisation and the challenge facing Member States both in 
thwarting and preventing such attacks and countering the radicalisation that fuels them. 

Ahead of the State of the Union 2017 where President Juncker will set out the priorities for 
the next twelve months, this report looks back and reviews the progress made in the Security 
Union  in  implementing  the  priorities  announced  in  the  State  of  the  Union  20161  and  the 
Commission  Work  Programme  20172.  This  report  also  provides  an  update  on  the 
implementation of other priority files on security. 

The Commission has taken firm action over the last year to enhance security at the external 
border, improve information exchange, close down the space in which terrorists operate and 
prevent radicalisation. All security-related priorities set by the State of the Union 2016 have 
been  implemented,  in  line  with  the  European  Agenda  on  Security3.  This  has  supported 
Member States in their efforts to address the threat posed by terrorism, organised crime and 
cybercrime. Still, more remains to be done. Building on the achievements made over the last 
year,  work  needs  to  continue  in  order  to  address  today's  security  challenges,  notably  by 
interoperable,  preventing  violent  extremism  and 
making  our 
radicalisation,  cutting  off  sources  and  channels  of  terrorist  financing  and  improving 
cybersecurity. 

information  systems 

TOWARDS  AN  EFFECTIVE  AND  GENUINE  SECURITY  UNION  –  ONE 

II.  
YEAR ON 

1. Enhancing security at the external border 

"We will defend our borders, as well, with strict controls, adopted by the end of the year, on 
everyone crossing them. Every time someone enters or exits the EU, there will be a record of 
when, where and why. 

By  November,  we  will  propose  a  European  travel  information  system  —  an  automated 
system to determine who will be allowed to travel to Europe. This way we will know who is 
travelling to Europe before they even get here." 

Commission President Jean-Claude Juncker, State of the Union 2016 

1   https://publications.europa.eu/en/publication-detail/-/publication/c9ff4ff6-9a81-11e6-9bca-01aa75ed71a1/ 

language-en/format-PDF/source-30945725. 

2   https://ec.europa.eu/commission/work-programme-2017_en. 
3   COM(2015) 185 final (28.4.2015). 

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Over  the  last  year,  significant  progress  has  been  made  to  enhance  security  at  the  external 
borders.  On  7  April  2017,  the  revision  of  the  Schengen  Borders  Code  entered  into  force 
providing  for  systematic  checks  against  databases  of  all  travellers  crossing  the  external 
borders, including EU citizens.4 These systematic checks help to identify those travellers who 
pose  a  threat  to  security  or  are  subject  to  an  arrest  warrant.  In  July  2017,  the  European 
Parliament  and  the  Council  reached  political  agreement  on  the  EU  Entry/Exit  System  as 
proposed by the Commission in April 2016.5 The System will register entry and exit data of 
non-EU  nationals  crossing  the  EU's  external  borders  and  therefore  contribute  to  enhancing 
external border management and internal security by improving the quality and efficiency of 
controls. Work is on-going with the co-legislators on the Commission proposal of November 
2016  to  establish  a  European  Travel  Information  and  Authorisation  System  (ETIAS).6 
The system will gather information on persons who intend to travel visa-free to the EU so as 
to carry out irregular migration and security checks and identify possible risks prior to arrival. 
The  Commission  continues  to  work  with  the  co-legislators  to  reach  agreement  on  this 
proposal before the end of the year,7 in line with the Joint Declaration on the EU's legislative 
priorities  for  2017.  As  these  instruments  rely  on  secure  travel  and  identity  documents,  the 
Commission also works on implementing measures against travel document and identity fraud 
set out in a December 2016 Action Plan.8 

2. Improving information exchange 

"How many times have we heard stories over the last months that the information existed in 
one database in one country, but it never found its way to the authority in another that could 
have made the difference? 

Border  security  also  means  that  information  and  intelligence  exchange  must  be  prioritised. 
For  this,  we  will  reinforce  Europol  —  our  European  agency  supporting  national  law 
enforcement  —  by  giving 
to  databases  and  more  resources.  A 
counterterrorism  unit  that  currently  has  a  staff  of  60  people  cannot  provide  the  necessary 
24/7 support." 

it  better  access 

Commission President Jean-Claude Juncker, State of the Union 2016 

Behind the external borders, data is at the frontline of the defence. The work to improve the 
exchange of information has been a priority for the Commission over the last year, with action 
taken  to  implement  the  April  2016  Communication  on  stronger  and  smarter  information 
systems  for  borders  and  security.9  First,  to  maximise  the  benefits  of  existing  information 
systems,  the  Commission  proposed  legislation10  in  December  2016  to  strengthen  the 

4   Regulation (EU) 2017/458 (15.3.2017). See also the Sixth progress report towards an effective and genuine 

Security Union (COM(2017) 213 final, 12.4.2017). 

5   COM(2016)  194  final  (6.4.2016).  See  also  the  Ninth  progress  report  towards  an  effective  and  genuine 

Security Union (COM(2017) 407 final, 26.7.2017). 

6   COM(2016) 731 final (16.11.2016). See also the Second progress report towards an effective and genuine 

Security Union (COM(2016) 732 final, 16.11.2016). 

7   The  Council  adopted  its  negotiating  position  on  9  June  2017  while  the  vote  in  the  European  Parliament's 
Committee on Civil Liberties, Justice and Home Affairs (LIBE) on its negotiating position is planned to take 
place on 26 September 2017. 
8   COM(2016) 790 final (8.12.2016). 
9   COM(2016) 205 final (6.4.2016). See the Seventh progress report towards an effective and genuine Security 

Union (COM(2017) 261 final, 16.5.2017) for a detailed overview of the state of play. 

10   COM(2016)  881  final  (21.12.2016),  COM(2016)  882  final  (21.12.2016),  COM(2016)  883  final 
(21.12.2016). See the Third progress report towards an effective and genuine Security Union (COM(2016) 
831 final, 21.12.2016) for a description of the legislative proposals. See also section IV.1 below. 

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Schengen  Information  System  (SIS)  as  the  most  successful  EU  law  enforcement  tool, 
reinforced  the  support  to  Member  States  to  implement  the  EU  Passenger  Name  Records 
(PNR) Directive11 including through an implementation plan and additional funding of EUR 
70  million,  and  pursued  infringement  action  against  those  Member  States  that  have  not  yet 
implemented  the  Prüm  framework12  for  the  automated  exchange  of  DNA,  fingerprints  and 
vehicle  registration  data.  The  work  on  better  using  existing  systems  is  yielding  results,  as 
illustrated  by  the  considerable  increase  in  the  consultations  of  the  Schengen  Information 
System and the number of hits they produced.13   

Second,  the  Commission  took  action  to  address  gaps  in  the  EU's  architecture  of  data 
management. In addition to the work on the EU Entry/Exit System and the European Travel 
Information and Authorisation System (ETIAS) mentioned above, the Commission presented 
in  June  2017  a  supplementary  legislative  proposal14  to  facilitate  the  exchange  of  criminal 
records  of  third-country  nationals  in  the  EU  through  the  European  Criminal  Records 
Information  System  (ECRIS).15  The  system  will  help  to  identify  convicted  third-country 
nationals  and  indicate  which  Member  States  hold  information  on  them.  The  proposed 
measures  will  address  important  information  gaps  and  the  Commission  calls  on  the  co-
legislators to make swift progress on the related legislative proposals. 

Third,  to  ensure  that  border  guards  and  law  enforcement  officers  have  the  necessary 
information  at  their  disposal,  the  Commission  is  working  towards  the  interoperability  of 
information systems. Based on the findings of a high-level expert group, the Commission set 
out in May 201716 a new approach to the management of data for borders and security where 
all  centralised  EU  information  systems  for  security,  border  and  migration  management  are 
interoperable,  in  full  respect  of  fundamental  rights.  The  objective  is  to  make  necessary 
information  available  more  quickly  to  frontline  police,  border  guards  and  immigration 
officers, and to  eliminate the current  blind spots where  terrorist and other criminals  may be 
recorded in different, unconnected databases under different aliases. As part of this work, the 
Commission presented in June 2017 a legislative proposal17 to strengthen the mandate of eu-
LISA18, enabling the agency to ensure the technical implementation of the new approach.  

Europol's  central  role  has  further  grown  over  the  last  year,  making  the  law  enforcement 
agency  the  genuine  EU  hub  for  information  exchange  on  serious  cross-border  crime  and 

11   Directive (EU) 2016/681 (27.4.2016). 
12   Council Decisions 2008/615/JHA and 2008/616/JHA (23.6.2008). 
13   The  annual  statistics  for  the  Schengen  Information  System  show  that  in  2016,  Member  States'  competent 
national  authorities  checked  persons  and  objects  against  data  held  in  the  system  on  nearly  4  billion 
occasions, which means an increase of 40% compared to 2015. The number of hits increased accordingly, 
from around 150 000 in 2015 to more than 200 000 in 2016. In terms of alerts created by Member States, on 
30 June 2017, there were a total of 73 465 075 alerts in the system (884 169 alerts on persons), which means 
an increase of 11% compared to 30 June 2016 (increase of 9% as regards alerts on persons). 

14   COM(2017) 344 final (29.6.2017). 
15   The initial proposal (COM(2016) 7 final, 19.1.2016) is part of the Joint Declaration on the EU's legislative 

priorities for 2017. 

16   See  the  Seventh  progress  report  towards  an  effective  and  genuine  Security  Union  (COM(2017)  261  final, 

16.5.2017). 

17   COM(2017)  352  final  (29.6.2017).  See  also  the  Eighth  progress  report  towards  an  effective  and  genuine 

Security Union (COM(2017) 354 final, 29.6.2017).  

18   European Agency for the operational management of large-scale IT systems in the area of freedom, security 

and justice. 

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terrorism.19 The new Europol Regulation20 entered into force on 1 May 2017, providing the 
agency with the tools to become more effective, efficient and accountable. In particular, a new 
framework for data processing enhances the agency's capacity to develop criminal analyses in 
support of Member States, and a more robust data protection framework ensures independent 
and effective data protection supervision. Works continues to integrate EU law enforcement 
databases  further  with  Europol's  information  system  and  to  make  them  interoperable.  The 
Commission  tabled  proposals  to  upgrade  Europol's  access  to  the  Schengen  Information 
System, strengthen the governance of the European Counter Terrorism Centre, and maximise 
the  benefits  of  co-operation  with  international  partners.21  The  Commission  also  encouraged 
interaction  between  the  law  enforcement  community  and  the  intelligence  community,22  and 
the European Counter Terrorism Centre has established contacts with the Counter Terrorism 
Group.23 On the basis of a thorough needs assessment, Europol received 18 additional posts to 
fulfil its new tasks in the years 2017 to 2020, and the EU Budget 2017 reinforced the agency 
with  31  additional  posts  to  enable  it  to  provide  24/7  service  and  on-the-spot  deployment 
capabilities,  bringing  the  total  number  of  posts  at  Europol  to  550.  In  the  draft  EU  Budget 
201824,  the  Commission  proposed  a  further  reinforcement  of  Europol  with  16  posts  to 
strengthen its dedicated centres,25 the support provided by its Internet Referral Unit to remove 
terrorist content online and the efforts to fight against online fraud. Europol reports a steady 
increase  in  the  contributions  to  its  databases.  Still,  it  is  necessary  that  Member  States 
participate fully in the European Counter Terrorism Centre, provide all relevant information 
to  Europol  for  shared analysis  and  contribute to  operational co-operation  for  Europol  to  tap 
the full potential of the support it can provide to national authorities. 

3. Closing down the space in which terrorist operate 

"That  is  why  my  Commission  has  prioritised  security  from  day  one  —  we  criminalised 
terrorism and foreign fighters across the EU, we cracked down on the use of firearms and on 
terrorist financing, (…)." 

Commission President Jean-Claude Juncker, State of the Union 2016 

The  EU  took  further  action  over  the  last  year  to  close  down  the  space  in  which  terrorists 
operate.  On  15  March  2017,  the  co-legislators  adopted  the  Directive  on  combating 
terrorism26 that helps to prevent terrorist attacks by criminalising acts such as the financing 
of terrorism, undertaking training or travelling for terrorist purposes, as well as organising or 
facilitating  such  travel.  The  Directive  also  strengthens  the  rights  of  the  victims  of  terrorism 
and  provides  for  a  catalogue  of  services  to  meet  their  specific  needs.  Member  States  must 
transpose the new rules into national law by 8 September 2018.  

19   Europol initiated more than 46 000 new cases in 2016, which means an increase of 16% compared to 2015. 
The content of the Europol Information System on 1 January 2017 increased by 34% compared to 1 January 
2016, whereas the total number of searches in this system increased by 127% in 2016 compared to 2015. 

20   Regulation (EU) 2016/794 (11.5.2016). 
21   COM(2016) 602 final (14.9.2016). 
22   COM(2016) 602 final (14.9.2016). 
23   The  Counter  Terrorism  Group  is  an  informal  group  outside  the  EU  framework  that  gathers  the  security 
services of EU Member States, Norway and Switzerland to support cooperation and operational exchange of 
intelligence. It also produces joint terrorism  threat assessments based on intelligence provided by national 
services and cooperates with the Intelligence and Situational Centre (EU INTCEN). 

24   SEC(2017) 250 final (30.5.2017). 
25   The  European  Counter  Terrorism  Centre,  the  European  Cybercrime  Centre  and  the  European  Migrant 

Smuggling Centre. 

26   Directive (EU) 2017/541 (15.3.2017). 

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On 17 May 2017, the co-legislators adopted the revised Firearms Directive27 on the control 
of the acquisition and possession of weapons. The proposal significantly broadens the range 
of prohibited weapons taking the most dangerous weapons out of wider circulation. Member 
States must put in place by 14 September 2018 the required controls on the acquisition and 
possession of firearms to ensure that criminal groups and terrorists do not exploit fragmented 
rules across the Union. At the same time, efforts continued to choke off the supply of illegal 
weapons  available  to  criminals  and  terrorists.  In  line  with  a  call  by  the  Commission28,  the 
Council  concluded  on  18  May  2017  that  illicit  firearms  trafficking  remains  a  crime  threat 
priority  for  the  EU  in  the  fight  against  serious  and  organised  crime  during  the  next  four 
years.29  The  Commission  also  continued  to  implement  the  December  2015  Action  Plan 
against illicit trafficking in and use of firearms and explosives.30 In line with the Statement31 
on  enhancing  the  fight  against  illicit  trafficking  of  firearms  and  ammunition  in  the  Western 
Balkans that was agreed at the EU-Western Balkans Ministerial Forum on Justice and Home 
Affairs  on  16  December  2016,  Europol  is  currently  preparing  the  deployment  of  Europol 
Guest Officers to Albania, Bosnia and Herzegovina and Serbia. 

On 30 May 2017, the Commission launched the revision of the EU Regulation on explosives 
precursors32  in  an  effort  to  reinforce the  restrictions  and  controls  that  apply  to  the  chemical 
substances  which  can  be  misused  towards  the  manufacturing  of  home-made  explosives.  A 
series  of  regional  workshops  involving  Member  State  authorities  is  underway  to  enhance 
implementation at national level and to ensure relevant exchange of information. 

Previous and recent terrorist attacks, such as those in Barcelona and Manchester, have shown 
a  focus  on  so-called  soft  targets,  which  are  public  areas  such  as  schools,  hotels,  beaches, 
shopping malls, cultural and sports events, crowded areas, or transport hubs. The Commission 
has  increased  its  efforts  in  this  field  to  provide a  forum  for  sharing  of  information  and  best 
practices  between  Member  States.  A  first  EU  workshop  on  soft  target  protection  was 
organised on 6-7 February 2017, where several policy strands and actions were agreed with 
Member  States.  The  Commission  also  set  up  a  platform  for  Member  States  to  exchange 
documents and guidance materials as well as a soft target protection vulnerability checklist. A 
soft target crisis exercise involving Belgium and the Netherlands took place on 29 June 2017, 
funded by the Commission, in order to test different approaches to soft target protection. 

In the field of transport security the EU has developed a common risk assessment process to 
improve  the  security  of  civil  aviation  flying  over  conflict  zones,  air  cargo  and  passenger 
incoming flights from third countries. As this latter is concerned, this will be complemented 
by a capacity-building effort in third countries.  

Work continued over the last year in implementing the Action Plan on terrorist financing33 to 
detect and prevent terrorist funding, notably on the basis of legislative proposals presented 

27   Directive (EU) 2017/853 (17.5.2017). 
28   See  the  Sixth  progress  report  towards  an  effective  and  genuine  Security  Union  (COM(2017)  213  final, 

12.4.2017). 

29   Council conclusions on setting the EU’s priorities for the fight against organised and serious international 

crime between 2018 and 2021 (Council document 9450/17, 19.5.2017). 

30   COM(2015) 624 final (2.12.2015). 
31   http://europa.eu/rapid/press-release_STATEMENT-16-4445_en.htm. 
32   OJ L 39, 9.2.2013, p. 1. 
33   COM(2016) 50 final (2.2.2016). 

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by  the  Commission.34  In  December  2016,35  the  Commission  put  forward  three  legislative 
proposals  to  complete  and  reinforce  the  EU  legal  framework  in  the  areas  of  money 
laundering36,  illicit  cash  flows37  and  freezing  and  confiscation  of  assets.38  Already  in  July 
2016, the Commission proposed amendments to the 4th Anti-money Laundering Directive to 
tackle new means of terrorist financing (e.g. virtual  currencies,  pre-paid cards)  and increase 
transparency to combat money laundering.39 The latest proposal to counter terrorist financing 
followed on 13 July 2017 when the Commission proposed a Regulation to prevent the import 
and  storage  in  the  EU  of  cultural  goods  illicitly  exported  from  a  third  country.40  The 
Commission  calls  on  the  co-legislators  swiftly  to  advance  the  work  on  these  important 
proposals. 

In  May  2017,  the  Commission  adopted  a  Recommendation  on  proportionate  police  checks 
and police cooperation in the Schengen area41 setting out measures Schengen States should 
take to provide for a more effective use of existing police powers to address threats to public 
policy  or  internal  security.  To  support  the  implementation  of  its  recommendation,  the 
Commission organised a workshop with Member States on 10 July 2017, to be followed by a 
second workshop on 8 September 2017. 

4. Preventing radicalisation 

"That  is  why  my  Commission  has  prioritised  security  from  day  one  —  (…)  we  worked  with 
internet  companies  to  get  terrorist  propaganda  offline  and  we  fought  radicalisation  in 
Europe’s schools and prisons." 

Commission President Jean-Claude Juncker, State of the Union 2016 

The  most  effective  counter-terrorism  policy  is  preventing  persons  from  being  seduced  by 
messages  of  violence  and  terror.  Over  the  last  year,  the  Commission  has  stepped  up  its 
support  to  related  action  by  Member  States  at  national  and  local  level,  implementing  the 
actions set out in the June 2016 Communication on supporting the prevention of radicalisation 
leading to violent extremism.42 

To counter radicalisation online, the Commission has continued working over the last year 
with  internet  platforms  to  address  terrorists'  exploitation  of  the  internet  and  protect  online 

34   See  the  Eighth  progress  report  towards  an  effective  and  genuine  Security  Union  (COM(2017)  354  final, 
29.6.2017) and its Annex 2 on the state of play of implementing the Action Plan for strengthening the fight 
against terrorist financing. 

35   See  the  Third  progress  report  towards  an  effective  and  genuine  Security  Union  (COM(2016)  831  final, 

21.12.2016) for a detailed description of the legislative proposals. 

36   Proposal  for  a  Directive  to  harmonise  the  definition  and  criminal  sanctions  of  money  laundering, 

COM(2016) 826 final (21.12.2016). 

37   Proposal for a Regulation to uncover illicit cash payments, COM(2016) 825 final (21.12.2016). 
38   Proposal  for  a  Regulation  on  the  mutual  recognition  of  criminal  asset  freezing  and  confiscation  orders, 

COM(2016) 819 final (21.12.2016). 

39   COM(2016) 450 final (5.7.2016). See the Ninth progress report towards an effective and genuine Security 
Union (COM(2017) 407 final, 26.7.2017) for a description of the legislative proposal. It is part of the Joint 
Declaration  on  the  EU's  legislative  priorities  for  2017  and  the  co-legislators  should  therefore  reach 
agreement before the end of the year. Trilogue meetings are on-going. 

40   COM(2017) 375 final (13.7.2017). 
41   C(2017) 3349 final (12.5.2017). 
42   COM(2016) 379 final (14.6.2016). See the Eighth progress report towards an effective and genuine Security 
Union (COM(2017) 354 final, 29.6.2017) and its Annex 2 on the state of play of implementing the actions 
set out in the June 2016 Communication. 

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users.  The  EU  Internet  Forum  has  two  key  objectives:  to  reduce  accessibility  to  terrorist 
content  online  and  to  empower  civil  society  partners  to  increase  the  volume  of  effective, 
alternative  narratives  online.  Under  that  first  objective,  the  EU  Internet  Referral  Unit  at 
Europol  continues  to  play  an  important  role  in  flagging  terrorist  content  to  the  internet 
companies.  In  just over two years, over 35,000 items have  been  referred, of which between 
80-90%  have  been  removed.  However,  it  is  clear  that  a  reactive  response  alone  will  not 
suffice in effectively disrupting the dissemination of online terrorist material. Therefore, at the 
second  high-level  meeting  of  the  EU  Internet  Forum  in  December  2016,  the  Commission 
welcomed the commitment by four of the largest companies to create a 'database of hashes' 
which  will  prevent  terrorist  material  removed  from  one  platform  of  being  re-uploaded  onto 
another. Following the calls of the Taormina G7 Summit statement, the G20 Action plan on 
terrorism and the June 2017 European Council Conclusions, the members of the EU Internet 
Forum  set  out  on  17  July  2017  an  Action  Plan  to  combat  terrorist  content  online.  This 
includes measures to step up the automated detection of illegal terrorist content online, share 
related technology and tools with smaller companies, achieve the full implementation and use 
of the database of hashes and empower civil society on alternative narrative. As announced at 
the  EU  Internet  Forum  in  December  2016,  the  Civil  Society  Empowerment  Programme 
(CSEP)  has  now  been  launched,  with  a  financial  endowment  of  EUR  10  million  from  the 
Commission and to help increase the volume of effective, alternative narratives online.  

In  more  general  terms,  the  Commission  continued  to  support  prevention  and  counter-
radicalisation  at  national  and  local  level  over  the  last  year,  notably  through  the 
Radicalisation  Awareness  Network  (RAN)  working  with  local  practitioners  at  community 
level. The network has offered training and advice to Member States, and developed a large 
number of best practices, guidelines, handbooks and recommendations.43 Themes and issues 
covered  include  polarisation,  prison  radicalisation  and  exit  programmes,  family  support 
measures,  youth  work  and  education,  community  policing,  communication  and  narratives, 
engagement and empowerment of young people, responses to returnees.  

On  27  July  2017,  the  Commission  set  up  a  High-Level  Expert  Group  on  Radicalisation,44 
which involves the main stakeholders at European and national level. The group's task include 
elaborating a set of guiding principles and recommendations for further work in this area at 
both  Union  and  national  level,  and  assessing  whether  more  structured  co-operation 
mechanisms for radicalisation prevention work at EU level are required.  

5. Ongoing work  

The  comprehensive  assessment  of  EU  security  policy45  identifies  challenges  and  gaps  for 
the effective cooperation in the Security Union and points to the need further to develop and 
adjust existing policies and tools in order to address the rapidly evolving security threats and 
challenges. 

The work towards the interoperability of information systems is being taken forward as a 
matter of priority, following the Council conclusions on interoperability of June 2017 and the 
European Council conclusions of June 2017. The Commission published an inception impact 
assessment  in  July  2017.  A  broader  public  consultation  is  ongoing  until  mid-October  2017. 
On that basis, the Commission will present a legislative proposal as soon as possible. 

43   Most  recently,  on  19  June  2017,  the  network  presented  a  “Responses  to  Returnees”  manual  to  support 

Member States in addressing the challenges posed by returning Foreign Terrorist Fighters. 

44   C(2017) 5149 final (27.7.2017). 
45   SWD(2017) 278 final (26.7.2017), pp. 8-11. 

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Countering radicalisation also remains a priority. The Commission is accelerating its work 
in this field notably through the High-Level Expert Group on Radicalisation. The group will 
present  its  interim  findings  before  the  end  of  2017.  As  regards  preventing  online 
radicalisation,  senior  officials  of  the  EU  Internet  Forum  will  take  stock  of  the 
implementation of the July 2017 Action Plan later in September 2017 in order to prepare the 
third EU Internet Forum in December 2017. The Commission will also work closely with the 
newly  launched  Global  Internet  Forum  to  Counter  Terrorism  that  complements  the  efforts 
undertaken in the EU Internet Forum. 

The  Commission  in  its  work  to  ensure  a  European  response  to  terrorist  financing  is 
implementing  the  actions  set  out  in  the  Action  Plan  of  2  February  201646.  This  includes 
assessing  measures  to  improve  access  to  central  bank  account  registers  and  to  restrict  on 
payments in cash.47 Another key aspect of this work is the assessment of a possible European 
system  to  track  terrorist-related  transactions  which  would  complement  the  existing  EU-US 
Terrorist Finance Tracking Programme (TFTP) agreement48 by tracing transactions excluded 
under that agreement. In the Third progress report towards an effective and genuine Security 
Union of December 201649, the Commission set out its initial analysis of the possible setting 
up of a European Terrorist Financing Tracking System, announcing that it would continue its 
assessment. The Commission's supranational assessment of terrorist financing risks published 
on  27  June  201750  confirmed  that  terrorists  and  criminals  try  to  use  the  financial  sector  for 
their activities, for example through fraudulent application of consumer's credit and low value 
loans.  Financial  intelligence  units  (FIUs)  are  in  a  central  position  to  address  challenges 
relating to money laundering and terrorist financing. They are responsible for receiving and 
analysing  information  and  disseminate  the  results  of  their  analysis  to  competent  authorities. 
However,  as  highlighted  in  a  report  of  December  201651,  considerable  differences  in  FIUs' 
status,  powers  in  accessing,  sharing  and  using  information,  organisation  and  level  of 
autonomy  may  negatively  impact  their  capacity  to  cooperate  amongst  themselves  and  with 
other  relevant  authorities.  The  June  2017  Commission  Staff  Working  Document52  on 
improving cooperation between financial intelligence units identifies both regulatory and non-
regulatory  measures  that  would  help  tackle  the  difficulties  identified.  The  Commission  will 
further  assess  these  measures,  in  discussions  with  experts  from  national  FIUs,  law 
enforcement and judicial authorities. The Commission will report on its findings in one of the 
next Security Union progress reports. 

Work  needs  to  continue  to  restrict  access  to  dangerous  substances  that  can  be  used  as 
explosives by terrorist networks. Home made-explosives have been the most common type of 
explosives used in recent attacks, in particular triacetone triperoxide (TATP).53 As announced 
in  the  recent  Report  on  the  application  of  the  Regulation  on  explosives  precursors,54  the 

46  COM (2017) 50 final (2.2.2016). 
47    http://ec.europa.eu/smart-regulation/roadmaps/docs/plan_2016_028_cash_restrictions_en.pdf. 
48   OJ  L  195/5-14  (27.7.2010).  The  Terrorist  Finance  Tracking  Programme  (TFTP)  has  generated  significant 
intelligence  that  has  helped  detect  terrorist  plots  and  trace  their  authors.  The  related  agreement  on  the 
exchange of financial information ensures protection of EU citizens' privacy and gives the U.S. and EU law 
enforcement authorities a powerful tool in the fight against terrorism. 

49   COM(2016) 831 final (21.12.2016).  
50   COM(2017) 340 final (26.6.2017). 
51   "Mapping  Exercise  and  Gap  Analysis  on  FIUs'  Powers  and  Obstacles  for  Obtaining  and  Exchanging 
Information"  prepared  by  a  project  team  of  Member  States  in  the  context  of  the  EU  FIU  Platform" 
(http://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetailDoc&id=33583&no=2).  

52   SWD(2017) 275 final (26 June 2017). 
53   EU Terrorism Situation and Trend Report 2017, Europol. 
54    COM(2017) 103 final (28.2.2017). 

9 

 
 
                                                            
Commission  is  examining  possible  additional  and  reinforced  measures  to  prevent  terrorists 
from acquiring explosives. 

In  strengthening  the  protection  of  soft  targets,  the  newly established  EU  soft  target  policy 
group  will  meet  for  the  first  time  on  18-19  September  2017,  supported  by  two  sub-groups 
with practitioners and operators including private stakeholder. Within the practitioners group, 
a  network  for  the  protection  of  high  risk  soft  targets  has  been  created  and  the  first  meeting 
will take place in Spain on 24-26 October 2017. 

As announced in January 201755, the Commission is developing guidance as to how national 
data retention laws can be constructed in conformity with the rulings of the Court of Justice 
of the European Union. 

III.  

IMPLEMENTATION OF OTHER PRIORITY FILES ON SECURITY 

1. Legislative initiatives 

Work  is  on-going  on  the  Commission's  legislative  proposals56  to  strengthen  the  Schengen 
Information System (SIS). The last discussion at Council working group level took place on 
26 July 2017, and the Estonian Council Presidency seeks to reach a negotiating mandate by 
October 2017. In the European Parliament, the rapporteurs presented their draft report in June 
2017 and the Committee on Civil Liberties, Justice and Home Affairs (LIBE) is set to vote on 
its negotiating mandate on 11/12 October 2017. The Commission calls on the co-legislators to 
reach  agreement  on  these  important  proposals  before  the  end  of  2017  as  part  of  the 
interoperability  agenda  set  out  in  the  Seventh  progress  report  towards  an  effective  and 
genuine Security Union.57 

2. Non-legislative initiatives 

In the area of transport security, and to complement the work done with Member States at 
EU level to improve the security of civil aviation, the Commission has launched work on risk 
assessments  for other modes of transport to identify gaps and possible measures to mitigate 
the risks identified. At a meeting held on 15 June 2017, the Commission services discussed 
with  Member  States  the  threat  situation  with  regard  to  rail  transport  and  ways  to  reinforce 
cooperation to help addressing this threat. The next meeting will take place in October 2017. 

As part of the fight against cyber-crime, the one-year anniversary of the No More Ransom 
initiative  on  25  July  2017  marked  its  further  expansion  with  new  partners,  tools,  and 
languages.58  Established  in  2016,  No  More  Ransom  is  a  public-private  initiative  to  combat 
ransomware and is supported by Europol. It assists victims of ransomware by providing more 
than 50 different decryption tools on the portal, currently 26 different languages. This has led 
to more than 28 000 successful decryptions since its launch, depriving cyber criminals of an 
estimated  EUR  8  million  in  ransom.  The  initiative  offers  an  innovative  co-operation  model 
using effective and concrete public-private partnership to tackle cybercrime. The initiative has 
grown  to  more  than  100  partners,  including  seven  associated  partners  and  98  supporting 

55   COM(2017) 41 final (25.1.2017). 
56   COM(2016)  881  final  (21.12.2016),  COM(2016)  882  final  (21.12.2016),  COM(2016)  883  final 

(21.12.2016). 

57   COM(2017) 261 final (16.5.2017). 
58   https://www.europol.europa.eu/newsroom/news/over-28-000-devices-decrypted-and-100-global-partners-

%E2%80%93-no-more-ransom-celebrates-its-first-year. 

10 

 
 
                                                            
partners  (34  law  enforcement  agencies  and  64  organisations  from  the  private  and  public 
sector). 

Months of international preparation and co-ordination led to the successful takedown of two 
of  the  largest  criminal  Dark  Web  markets,  AlphaBay  and  Hansa.59  This  is  expected  to 
initiate hundreds of new investigations in Europe. Two major law enforcement operations, led 
by the US Federal Bureau of Investigation, the US Drug Enforcement Agency and the Dutch 
National Police, with the support of Europol, shut down the infrastructure of an underground 
criminal  economy  responsible  for  the  trading  of  over  350  000  illicit  commodities  including 
drugs, firearms and cybercrime malware. The co-ordinated law enforcement action in the EU 
and  the  US  ranks  as  one  of  the  most  sophisticated  takedown  operations  seen  in  the  fight 
against criminal activities online. 

3. External dimension  

On  26  July  2017,  the  Court  of  Justice  of  the  European  Union  delivered  its  opinion  on  the 
compatibility  of  the  agreement  between  the  EU  and  Canada  on  the  transfer  and 
processing of passenger name record (PNR) data with the Treaties.60 The answer given by 
the  Court  to  the  European  Parliament's  request  is  that  the  envisaged  agreement  may  not  be 
concluded  in  its  current  form  because  several  of  its  provisions  are  incompatible  with  the 
fundamental rights recognised by the EU, in particular the right to data protection and respect 
for  private  life.  While  the  Court  observed  that  the  transfer  of  PNR  data  from  the  EU  to 
Canada  and  the  interference  it  entails  with  these  fundamental  rights  are  justified  to  ensure 
public security in the context of the fight against terrorist offences and serious transnational 
crime the Court considered that several provisions of the envisaged agreement are not limited 
to what is strictly necessary and do not lay down clear and sufficiently precise rules. 

Given that the use of PNR data is an important tool to fight terrorism and serious transnational 
crime,  the  Commission  will  take  the  necessary  steps  to  ensure  continuation  of  PNR  data 
transfers  in  full  respect  of  fundamental  rights  in  compliance  with  the  Court's  Opinion.  The 
Commission is completing its analysis of the Court's Opinion and will soon seek a mandate 
from the Council to launch talks with Canada to revise the existing agreement so as to bring it 
swiftly in line with the requirements set out in the Court's Opinion.  

V. 

CONCLUSION 

This report takes stock of the progress made in building the Security Union over the last year. 
It  illustrates  how  all  security-related  priorities  set  by  the  State  of  the  Union  2016  and  the 
Commission  Work  Programme  2017  have  been  implemented.  This  work  provides  the  basis 
for further concerted action with the European Parliament and the Council in the year ahead to 
address the current security threats and challenges, in line with the priorities that will be set in 
the State of the Union 2017. 

The next Security Union progress report will be presented in October 2017. 

59   https://www.europol.europa.eu/newsroom/news/massive-blow-to-criminal-dark-web-activities-after-

globally-coordinated-operation. 

60   https://curia.europa.eu/jcms/upload/docs/application/pdf/2017-07/cp170084en.pdf.  

11