COMMISSION STAFF WORKING DOCUMENT CAFS Action Plan - State of Play June 2022 Accompanying the document REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 33rd Annual Report on the protection of the European Union's financial interests and the fight against fraud - 2021
Date: 2022-09-23
Institutions: European Anti-Fraud Office, European Commission
Subjects: EU Member State, EU action, EU budget, EU strategy, activity report, corruption, fight against crime, fraud, fraud against the EU

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.9.2022  SWD(2022) 306 final  COMMISSION STAFF WORKING DOCUMENT CAFS Action Plan - State of Play June 2022 Accompanying the document REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 33rd Annual Report on the protection of the European Union's financial interests and the fight against fraud - 2021 {COM(2022) 482 final} - {SWD(2022) 302 final} - {SWD(2022) 303 final} - {SWD(2022) 304 final} - {SWD(2022) 305 final} - {SWD(2022) 307 final}  
 
 
Contents 

A. Prevention and Detection                                                                                                                                       3 

A.1 Data collection and analysis  

A.2 Priority measures: coordination and cooperation among Commission services and executive agencies  

A.3 Professional ethics  

A.4 Training, awareness-raising and technical assistance  

A.5 Transparency  

A.6 Fraud-proofing of the legal framework for the implementation of the budget  

A.7 Miscellaneous  

A.8 Expenditure  

A.9 Revenue-traditional own resources (TOR)  

A.10 Revenue – Value added tax (VAT)  

3 

8 

10 

13 

17 

18 

20 

21 

28 

31 

B. Investigation                                                                                                                                                           33 

B.1 European Public Prosecutor’s Office (EPPO) and PIF Directive  

B.2 European Anti-Fraud Office (OLAF)  

33 

35 

C. Corrective Measures and Sanctions; Follow-up of OLAF Recommendations                                                      36 

D. Reporting on the Implementation of the CAFS                                                                                                     38 

1 

 
 
 
 
 
 
 
 
 
 
 
A. Prevention and Detection 

A.1 Data collection and analysis 

Nr  Action 

Lead service 

Action taken  

(State-of-play) 

1 

Provide  strategic  analyses  that  can  feed  into  fraud 
risk  assessments  and  fraud  prevention  activities  of 
the  Commission  services  and  the  Member  States. 
Data sources for these analyses would include: 

OLAF 

Support: JRC 

 

 

closed OLAF investigations; 

cases  reported  by 
through 
the 
System (IMS). 

the  Member  States 
Irregularities  Management 

2 

3 

Promote the analytical use of IMS data (also by the 
Member  States) 
and 
deployment  of  resources  in  the  field  of  fraud 
prevention, detection, investigation and correction.  

improve  methods 

to 

This  action  should  be  supported  by  a  built-in 
analytical tool to be developed by OLAF. 

Closely  monitor  Member  States’  reporting  of 
irregularities  by  carrying  out  respective  checks 
and/or external evaluation, with a view to improving 
and harmonising the quality and completeness of the 
data reported in the IMS. 

OLAF 

Support: 
REGIO, 
AGRI,  EMPL, 
MARE, 
HOME, JRC 

(coor-

OLAF 
dination), 
REGIO, 
EMPL, 
MARE,  AGRI, 
HOME 

In  June  2020,  OLAF  shared  an  internal  analysis  on  fisheries 
funds  with  relevant  Commission  services.  An  OLAF  internal 
paper  on  COVID-19  related  risks  (based  on  OLAF’s 
investigations)  was  circulated  to  Commission  services  in 
October  2020,  and  an  analysis  on  irregularities  and  fraud  in 
EU  funding  of  health  infrastructure  was  finalised  in  June 
2021. In May 2022, OLAF finalised two additional reports: (i) 
analysis of  the  decline  in  the  detection  and reporting  of  non-
fraudulent irregularities in the cohesion area, to find potential 
explanations  and  formulate  general  recommendations  to  the 
Member  States;  (ii)  the  general  risk framework  related to  the 
Recovery  and  Resilience  Facility,  as  a  building  block  for  a 
common  vision  and  approach  in  protecting  this  new  Fund. 
Other analyses are ongoing.  

OLAF regularly promotes the analytical use of IMS data with 
users in the Commission services and Member States. An IMS 
built-in  analytical  tool  has  been  developed  and  was  put  into 
production in February 2021. It is now available to IMS users 
and offers a number of tailored analyses, which can be further 
developed on OLAF’s own initiative or on request.  

Status 

Due date 

and  

Done 
continuous 

and 

2020 
then 
continuous 

and  

Done 
continuous 

and 

2020 
then 
continuous 

2021 

OLAF  monitors  all  relevant  information  from  audits  by 
Member  States  and Directorates-General  (DGs)  to  make sure 
that irregularities are reported in the IMS. 

Done 
and 
continuous 

and 

2021 
then 
continuous 

The  relevant  Commission  services  conduct  system  audits,  to 
check  if  monitoring  and  reporting  of  irregularities  is  general 
practice.  This  reporting  is  done  in  the  context  of  regular 
correspondence  with  Member  States  (on,  for  example, 
implementation  of  the  operational  programmes  and  audit 
reports). 

OLAF  lauched  a  study  on  the  future  development  of  IMS  in 
the  second  half  of  2021  to  assess  the  use  of  IMS  and  users’ 

2 

 
 
 
 
 
 
 
 
 
 
 
 
4a)  Exploring  possibilities  to  strengthen  IT-based  fraud 
prevention and detection (as regards risk scoring and 
controls for  double-funding,  (self-)  plagiarism,  etc.) 
by: 

o  establishing 

and 

a 
Commission-wide  inventory  of  existing  IT 
tools;  

disseminating 

needs, with a view to improving the quality and completeness 
of data reporting in the IMS. The study was finalised in May 
2022.  

The  EC  Data  Inventory  was  established  and  disseminated 
across the Commission. 

Done  

and 

2020 
then 
continuous 

Coordination: 

OLAF / JRC 

Support:  

BUDG, 
DIGIT, 
Spending 
Services1 

SJ, 

b) 

c) 

d) 

to 
these 

o  examining  ways 
enhance 
the 
interoperability  of 
tools,  where 
possible  across  management  modes,  share 
them  among 
interested  services  and/or 
enrich  them  with  data coming  from  several 
sources; 

o  analysing  needs  and  potential  for  new 
developments,  working  towards  the  most 
cost-effective  balance  between  corporate 
and local tools. 

Review  and  improve  the  ARACHNE  risk  scoring 
tool.  Continue  to  promote  its  use  among  Member 
State  authorities,  supported  by  an  external  legal 
opinion as necessary. 

The Commission is striving to enhance the interoperability of 
its IT tools, also to prevent and detect fraud. This reflection is 
ongoing  for  example  in  the  development  of  ARACHNE  and 
EDES, notably in the context of the revision of the Financial 
Regulation.  

Done  

In May 2022, a study on the future development of IMS was 
finalised.  It examines ways to enhance the interoperability of 
IT  based  anti-fraud  tools  and  proposes  short  and  long  terms 
options. 

To  maximise  the  usage  of the  Commission  IT  resources, 
OLAF  is  in  contact  with  data  owners  to  obtain  the  most 
efficient type and level of access. 

The Commission is continously analysing its IT needs and the 
potential for new developments. 

and 

Done 
continous 

EMPL 

Support: 
REGIO, 
AGRI,  OLAF, 
JRC, SJ 

The  Commission  constantly  assesses  Member  States’ 
suggestions  for  improvement  and  considers  them  whenever 
the  need  for  updates  to  ARACHNE  arises.  ARACHNE  is 
promoted  by  the  Commission  in  the  context  of  setting  up 
national  control  systems  to  implement  the  Recovery  and 
Resilience Facility (RRF) and also for the shared management 

and 

Done 
continous 

1   Each service that is business owner of an IT tool has the lead responsibility for the analysis and adaptation of that tool in line with the action point. 

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
funds. 

ARACHNE  was  promoted,  notably,  at  the  annual  bilateral 
coordination meetings with the national audit authorities.  

The  Commission  also  continues  to  promote  ARACHNE 
during  the  Technical  Meetings  and  the  trainings  to  the 
Member  States.  In  2022  and  up  to  31  May  2022,  the 
ARACHNE  Team  organised  one  training,  six  presentations 
and three Financial Management and Audit seminars.  

ARACHNE  improvements  in  2022:  A  new  major  release 
improving  the  reporting  and  introducing  a  new  ex-ante 
calculation module will be available to the Member States as 
of  mid-June  2022.  The  following  further  improvements  will 
be released during the second half of 2022: 

 

Incorporation  of  beneficial  owners  data  in  data 
feeding and risk indicators; 

  Availability  of  a  web  service  to  the  Member  States 
allowing to make automated upload of data files 

In line with the invitation addressed to the Commission by the 
European Council in July 2020, further measures to protect the 
EU-funds  against  fraud  and  irregularities  were  launched  to 
increase the use of IT tools for purposes of achieving a more 
transparent  and  interoperable  access  to  data  including  data 
about  recipients,  financial  recipients  and  beneficial  owners, 
contractors and subcontractors. This is intended to be achieved 
through  an  increased  use  of  specific  data  mining  and  risk 
scoring  tools,  in  particular  the  use  of  ARACHNE  by  the 
Member States authorities at all stages from project selection, 
the launch of tender procedures, the selection of beneficiaries 
and payment. 

According  to  the  inter-institutional  agreement  between  the 
European  Parliament,  the  Council  and  the  Commission  of 
December  2020  on  budgetary  discipline,  cooperation  in 
budgetary matters and sound financial management, as well as 
new  own  resources,  the  Commission  is  required  to  make 
available  an  integrated  and  interoperable  information  and 
monitoring  system,  including  a  single  data-mining  and  risk 

Done  

4 

e) 

Explore  possibilities  for  an  extended  use  of 
ARACHNE  and  other  risk  scoring  tools  in  all 
management modes. 

Coor- 

dination:  

OLAF/ 

EMPL 

Support: 

RTD, 

SJ, 

JRC; 
DIGIT, 
BUDG, 
Spending 
Services 

 
 
 
 
 
 
 
5a)  Examine possible scope, tools and working methods 
for the exchange of audit results among services and 
for  exploiting  audit  results  for  analysis  and  early 
detection of risks.  

b) 

Explore  an  extended  use  of  specific  applications  of 
audit  tools  (MAPAR)  on  audit  procedures  and 
developing analysis of findings. 

OLAF 

Support:  
RTD,  DIGIT, 
BUDG, 
Spending 
services 

REGIO 

Support: 
RTD,  DIGIT, 
OLAF, BUDG, 
Spending 
Services 

scoring tool. 

Importantly, the Commission adopted a proposal for a targeted 
amendment  of  the  Financial  Regulation  on  16  May  2022.  In 
this context, the Commission proposed the mandatory use of a 
single integrated IT system for data-mining and risk-scoring in 
all management modes of the EU budget. The new provisions 
will apply to programmes adopted under and financed as from 
the post-2027 MFF. 

In  the  absence  of  a  legal  obligation,  voluntary  application  is 
possible  and  the  Commission  continues  to  encourage  the 
Member  States  to  use  ARACHNE  during  the  transitional 
period.  The  number  of  connections  as  well  as  the  number  of 
active  users  are  hence  increasing.  During  the  first  quarter  of 
2022, there have been 1836 active users. As of 31 May 2022, 
the percentage of all programmes using ARACHNE was 56%. 

OLAF  evaluated  the  extent  to  which  (including  tools  and 
methods) OLAF can exploit the information available in audit 
reports  in  correlation  with  all  the  internal  data  sources  on 
shared  management.  OLAF  systematically 
ingests  audit 
reports received in GETI for cross-checking.  

EISMEA  Final  Audit  Reports  are  available  to  services  using 
and having access to AUDEX IT tool. 

MAPAR records the findings of the audits performed by DG 
REGIO and EMPL. The existing Launchpad reports capturing 
the  information  available  in  MAPAR  were  further  developed 
during  2020.  These  reports  can  capture  the  audit  findings, 
their  acceptance,  frequency  and  financial  impact,  the  applied 
assessment criteria and the Key Requirements assessments. 

The  MAPAR  audit  tool  provides  a  possibility  to  extract  the 
EC findings (EMPL and REGIO) according to the agreed joint 
typology  of  irregularities.  REGIO  uses  them  to  analyse 
patterns of  the most  recurrent  types  of  irregularities.  Such  an 
analysis  of  the  audit  findings  is  done  and  reported  in  the 
REGIO AAR each year. It is also communicated to the AAs in 
the regular technical meetings. On the basis of these findings, 
in November 2020 the three ESIF DGs organised a workshop 
types  of  recurrent 
with  AAs 

to  discuss  some  select 

Done  

2020-2021 

Done 

5 

 
 
 
 
 
 
 
6 

7 

8 

cooperation  with 

and 
Encourage 
practitioners  by  organising/contracting/co-financing 
conferences and studies on selected topics. 

academia 

REGIO/EMPL error/irregularities findings. 

OLAF 

In the context of the Hercule funding programme, OLAF has 
encouraged  cooperation  with  academia  and  practitioners.  In 
2021, the programme provided grants to six projects involving 
academia and practitioners, contributing to data collection and 
analysis and the development of anti-fraud studies. 

and 
Done 
continuous 

and 

2020 
then 
continuous 

Map  and  review  channels  for  exchanging  fraud-
related  information  between  services,  other  EU 
bodies,  Member  States  (including  exchanges  with 
international 
Eurofisc),  non-EU  countries  and 
organisations.  

OLAF 

Support: 
SJ, 
BUDG, 
JRC,  Spending 
services 

Develop country profiles to better analyse and assess 
Member States’ anti-fraud action. 

OLAF 

The  mapping  of  channels  was  finalised  and  circulated  in  the 
FPDNet in March 2022.  

Done  

and 

2020 
then 
continuous 

OLAF  has  developed  country  profiles  with  a  comparison 
between  the  error  rates  and  the  detection  rates.  The  profiles 
are  under  discussion  with  the  relevant  Commission  services. 
The  launch  of  a  pilot  with  a  wider  collection  of  country 
specific information is pending due to resource constraints.  

Done 
and 
continuous  

and 

2020 
then 
continuous 

A.2 Priority measures: coordination and cooperation among Commission services and executive agencies 

Nr  Action 

Lead service 

Action taken  

(State-of-play) 

9 

Have the Corporate Management Board strategically 
monitor  and  review  the  Commission’s  anti-fraud 
policies  at  least  once  a  year.  This  monitoring 
exercise will include: 

SG 

Support: 
OLAF, BUDG, 
HR, SJ  

o 

o 

o 

the  follow-up  to  OLAF’s  recommendations  on 
services’ anti-fraud strategies; 

the  overall  progress  in  the  2019  CAFS  Action 
Plan; and 

the systemic follow-up to OLAF’s investigation-
based recommendations.  

Preparatory  work  undertaken  mainly  by  OLAF,  the 
FPDNet and by the central services at working level, 
the  Administrative  Arrangements 
in 

line  with 

The  Commission  Secretariat-General  has,  since  2019, 
organised  regular  monitoring  meetings  with  OLAF  and 
horizontal 
of  OLAF 
the 
recommendations. 

follow-up 

services 

on 

Status 

Due date 

Done 
and 
continuous 

and 

2019 
then 
continuous 

2021,  OLAF 

In 
provided 
recommendations on 13 services’ anti-fraud strategies. 

anti-fraud 

advice 

and 

Progress in implementing the Commission anti-fraud strategy 
(CAFS)  was  last  discussed  by  the  Commission  Corporate 
Management Board (CMB) on 30 March 2022. 

OLAF  presents  its  monitoring  activities  (e.g.  guidelines  and 
best  practice  as  well  as  overviews  of  information  collected 
concerning  the  follow-up  given  by  the  recipient  bodies  and 
services to recommendations issued by OLAF) to the FPDNet 

6 

 
 
 
 
 
 
 
 
 
between  the  Commission  and  OLAF.  See  also 
Action 10. 

plenary as appropriate. 

OLAF’s  Director-General  regularly  presents  the  state of  play 
to the Corporate Management Board. 

10 
a) 

Intensify 
the  work  of 
Prevention and Detection Network by: 

the  Commission  Fraud 

o  organising an annual Directors’ level meeting to 

review Commission anti-fraud policies; 

OLAF 

Support: 

BUDG 

To  ensure  reporting  on  Commission  anti-fraud  policies  at 
Directors’  level,  OLAF  presented  the  state  of  play  of  the 
implementation  of  the  CAFS  to  the  Group  of  Resource 
Directors on 18 January 2022.  

Done 
and 
continuous 

and 

2019 
then 
continuous 

b) 

o 

existing 

setting  up  subgroups  of  services  with  similar 
profiles,  based  on  needs  to  be  analysed  and 
including 
networks 
composed  of  ‘families’  of  services.  OLAF  and 
BUDG  should  participate in  all  sub-groups and 
the External Aid subgroup should be open to the 
EEAS; 

anti-fraud 

Three  Fraud  Prevention  and  Detection  Network  (FPDNet) 
sub-groups  (shared  management,  direct  management,  and 
external aid) were set up in 2019, and two in the first half of 
2021 
risk  management). 
Furthermore,  a  subgroup  has  been  created  to  coordinate  the 
Commission’s relations with the EPPO. The sub-groups meet 
regularly. 

(internal 

fraud 

cases 

and 

and 
Done 
continuous 

o  choosing agenda items that relate to colleagues’ 
‘hands-on’ 
daily  work 
experiences 
collaboration,  including  a  peer  review  of  fraud 
risks,  red  flags  and  control  systems  where 
appropriate; and 

for 

Main  topics  for  FPDNet  agendas  are  identified  based  on 
feedback from services. 

Done 
and 
continuous 

c) 

d) 

11 

a) 

o  collaborating  more 

the 
Commission’s  Network  of  Internal  Control 
Coordinators. 

effectively  with 

Further  improve  service-level  anti-fraud  strategies 
and their implementation in the following ways: 

o  Continue  to  update  anti-fraud  strategies,  taking 
into  account  the  2019  CAFS  and  following  a 
peer review in the relevant FPDNet subgroup at 
least every three years; 

All services 

Coor-dination: 
OLAF 

Support:  SG, 
BUDG 

b) 

o  OLAF 

should  update 

anti-fraud 

its  methodological 
strategies  when 

guidance 
necessary; 

for 

OLAF has ensured effective communication channels with the 
Internal Control Coordinators Network and participates in the 
meetings of the Network. 

Done 
and 
continuous 

Since the entry into force of the 2019 Commission anti-fraud 
strategy,  more than  46 Commission  services  have updated or 
revised their services’ anti-fraud strategies. 

and 
Done 
continuous 

and 

2019 
then 
continuous 

The revised anti-fraud strategy methodology was finalised and 
circulated in the FPDNet in June 2021. 

Done  

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
c) 

o  Draft anti-fraud strategies and updates should be 

subject to mandatory review by OLAF; 

d) 

e) 

o  Without prejudice to AODs’ responsibilities, the 
implementation of services’ anti-fraud strategies 
should be closely monitored by OLAF, from the 
planning to the reporting stage; 

on 

should 
design 

o  Based on  drafts  and  concepts  developed  by  the 
issue 
concerned,  OLAF 
services 
and 
the 
recommendations 
implementation  of  anti-fraud  strategies  as 
appropriate.  AODs  who  decide  not  to  follow  a 
recommendation  must  justify  their  position  to 
OLAF  in  writing.  Any  issues  that  cannot  be 
resolved  bilaterally  between  OLAF  and  the 
service  concerned  may  be  discussed,  without 
prejudice  to  the  AODs’  ultimate  responsibility, 
in  the  relevant  subgroup  of  the  FPDNet  and/or 
in  other  suitable  contexts,  such  as  peer  review 
meetings  on  critical  risks  or  annual  activity 
reports.  They  may  also  be  brought  to  the 
attention of the CMB. 

A.3 Professional ethics 

Nr  Action 

12 

interest, 

relations  with 

Continue,  and  reinforce  where  appropriate,  internal 
training  on  questions  of 
communication  and 
professional ethics with special emphasis on conflict 
of 
lobbyists,  duty  of 
discretion and whistleblowing. The aim is to create a 
common understanding of the relevant concepts and 
to  encourage  ethical  practices  in  the  workplace, 
taking  into  account  that  fraud  prevention  and 
detection is only one aspect of ethics and integrity. 

In  2020  and  2021,  OLAF  provided  anti-fraud  advice  and 
recommendations  on  respectively  13  and  16  services’  anti-
fraud strategies. 

Done 
and 
continuous 

OLAF  closely  monitors the  implementation  of  services’  anti-
fraud strategies. 

Done 
and 
continuous 

When revising the services’ anti-fraud strategies, OLAF issues 
recommendations and advice to the services concerned. 

Done 
and 
continuous 

Lead service 

Action taken  

(State-of-play) 

HR 

Support: 

SG, OLAF 

The  Commission  has  put  in  place  a  very  comprehensive 
training policy on ethics and disciplinary matters to reach staff 
at  different  moments  of  their  career.  Up  until  2022,  a 
significant  number  of  staff  members  attended  the  outreach 
sessions of DG HR on these matters. 

In 2019, specific efforts on ethics trainings were put in place 
for the new Commission.  

The Commission also issued two guides on Ethics in 2019, an 
extensive  one  containing  all  the  rules  and  the  legal  texts  for 

Status 

Due date 

Done 
and 
continuous 

Continuous  

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 

Evaluate the use of declarations of interest / absence 
of  conflict  of  interest  in  the  Commission  and  in 
executive agencies. 

HR 

14 

the 

on 
Evaluate 
whistleblowing in the context of the report required 
by Article 113 of the Staff Regulations. 

Commission’s 

policy 

HR.IDOC 

both Members and Commission staff, and a shorter version for 
Commission staff (Practical guide on ethics). On 12 June 2019 
the  Commission  adopted  the  new  Decision  laying  down 
general 
the  conduct  of 
administrative inquiries and disciplinary proceedings C(2019) 
4231,  which  repealed  Commission  Decision  C(2004)  1588. 
IDOC  revised  its  Practical  Guide  and  made  it  publicly 
available for staff on the Commission Intracomm site. 

implementing  provisions  on 

In  December  2020  and  January  2021,  the  Commission  has 
published  additional  guidance  for  Commission  staff.  This 
includes the revised guidance on MyIntracomm on conflicts of 
interest  at  gainful  employment  of  the  spouse,  on  ad  hoc 
conflict of interest (including on financial matters) and revised 
FAQs on post-service activities.  

(Communication 

The  Commission  issued  a  review  of  the  Guidelines  on 
Whistleblowing 
from  Vice-President 
Šefčovič to the Commission on Guidelines on Whistleblowing 
of 6 December 2012, SEC(2012) 679 final). The Report of 4 
September  2019  on  the  2019  review  of  the  guidelines 
concluded that it is not necessary to amend them at this stage.  

15 

Promote  the  highest  ethical  standards  among  other 
EU bodies through: 

o  membership in management boards; 

o  presentation of the Commission’s best practices 

in inter-agency networks; 

o 

support for ethics training; 

o  advocating inter-agency task forces on particular 

issues as necessary. 

Partner DGs of 
EU 
other 
bodies 

Support: 

SG, 
OLAF 

HR, 

On  20  April  2020,  the  Commission  issued  guidelines2  to 
implement  the  new  Framework  Financial  Regulation  (FFR)3. 
The  basic  acts  setting  up  decentralised  agencies 
in 
combination  with  Art.  70  of  the  Financial  Regulation  oblige 
the  decentralised  agencies  receiving  support  from  the  Union 
budget to align their financial rules with the FFR and, on this 
basis, to adopt rules on preventing and managing conflicts of 
interest  and  to  publish  annually  on  their  website  the 
declaration of interests of the management board members. 

The  rules  of  each  decentralised  agency  shall  thus  be  aligned 
with Art. 42 of the FFR. According to the FFR, the agencies 

Done  

2020  

Done 

2020 

Done 
and 
continuous  

Continuous 

2 Communication from the Commission on the strengthening of the governance of Union Bodies under Article 70 of the Financial Regulation 2018/1046 and on the guidelines for the Single Programming Document and the Consolidated 
Annual Activity Report C(2020)2297 
3  Commission  Delegated  Regulation  (EU)  2019/715  of  18  December  2018  on  the  framework  financial  regulation  for  the  bodies  set  up  under  the  TFEU  and  Euratom  Treaty  and  referred  to  in  Article  70  of  Regulation  (EU,  Euratom) 
2018/1046 of the European Parliament and of the Council OJ L 122, 10.5.2019, p. 1–38 

9 

 
 
 
 
    
 
 
 
                                                           
 
 
shall also inform the Commission without delay about cases of 
presumed  fraud  and  other  financial  irregularities,  and  of  any 
completed  or  ongoing  investigations  by  the  EPPO  or  OLAF, 
and of any audits or controls by the ECA or IAS.  

10 

 
 
 
A.4 Training, awareness-raising and technical assistance 

Nr  Action 

Lead service 

Action taken  

(State-of-play) 

16  Maintain  and  refine  a  corporate  anti-fraud  training 
cycle, 
including  regular  refresher  courses  and 
e-learning  modules,  which  should  be  mandatory  for 
relevant groups of staff such as financial officers. 

OLAF 

Support: 

BUDG, HR 

The ‘Fraud stay vigilant’ training is carried out by an external 
contractor  under  a  framework  contract  managed  by  DG  HR. 
OLAF  provides  planning,  validation  of  contents  (including 
some mock sessions with the external trainers) and the agenda. 
OLAF  is  also  involved  in  managing  the  training,  with  a new 
contractor. 

Status 

Due date 

and 
Done 
continuous 

and 

2020 
then 
continuous 

17 

Ensure  specialised  anti-fraud  training,  according  to 
needs identified, for target groups such as:  

OLAF 

o  project managers; 

o  auditors; 

o  Heads  of,  and  administrative  staff 
Representations and Delegations; and 

in, 

o  Heads  of  Civilian  CFSP  Missions  and  EU 
Special Representatives and the staff of their 
offices. 

OLAF  delivered  27  days  of  training  to  EU  institutions  and 
Member  States  authorities  in  2021,  25  days  in  2020  and  45 
days in 2019. 

Done 
and 
continuous 

and 

2020 
then 
continuous 

18 

Support  other  Commission  services  and  executive 
agencies, 
other  EU 
institutions  and  bodies  and  Member  States  in  their 
anti-fraud training activities.  

decentralised 

agencies, 

OLAF 

and 

(EIT), 

OLAF has provided advice on anti-fraud strategies (including 
training aspects) and other fraud prevention aspects, notably to 
the  BEREC  Office,  the  Innovative  Medicines  Initiative-IMI2 
Joint  Undertaking,  the  European  Institute  for  Innovation  & 
the  Knowledge 
Technology 
Innovation 
Communities  (KICs), 
the  European  Union  Agency  for 
Cybersecurity  (ENISA),  CINEA,  Frontex,  the  Fuel  Cells  and 
Hydrogen  Joint Undertaking,  the Central  Finance Unit  of  the 
European  Parliament,  the  members  of  the  allowance  team  of 
the  European  Economic  and  Social  Committee,    the  Central 
Financial and Contracting Agency of Croatia and the member 
state  agencies  (AFD  -  Agence  Française  de  Développement 
and  Camões  Portuguese  development  agency),  European 
Research Council Executive Agency (ERCEA) and European 
Health and Digital Executive Agency (HaDEA). 

Done 
and 
continuous 

Continuous 

11 

 
 
 
 
 
 
 
19 

technical  assistance 

Provide 
to  Member  States 
through various spending programmes (including the 
EU Anti-Fraud Programme). 

OLAF 

TAXUD 

The  Commission  provides  technical  assistance/support  to 
through  various  spending  programmes, 
Member  States, 
including the EU Anti-Fraud Programme. 

Done 
and 
continuous  

Continuous 

REFORM 

REGIO 

REFORM:  In  2020  technical  support  was  provided  through 
the  Structural  Reform  Support  Programme  (SRSP  2017-
2020) for  a number  of actions in the area of  the fight against 
corruption  and  fraud.  Projects  have  been  started  with 
authorities  from  a  number  of  Member  States  for  raising 
awareness  and  standards  of  fighting  bribery  in  international 
business  transactions,  development  of  risk  assessment  and 
behavioral  insights  framework  for  better  management  of 
corruption  risks,  enhancing  fraud  risks  detection  related  to 
grants,  increasing  the  effectiveness  of  implementation  and 
monitoring of anti-corruption actions”.  

In 2021 DG REFORM continued to provide technical support 
to  Member  States  in  the  area  of  anti-corruption  and  integrity 
through  its  programmes,  namely  the  Structural  Reform 
Support  Programme  and  the  newly  established  Technical 
Support  Instrument.  The  technical  support  has  facilitated  the 
review of procedures for the selection and appraisal of judges 
and  prosecutors  and  the  enforcement  of  anti-corruption 
measures in education, environment and sports. Some national 
authorities 
establish  monitoring 
mechanisms  for  their  anti-corruption  national  plan;  to  revise 
to  ensure 
their  rules 
to  demonstrate 
supervision  of  public  expenditure  or 
preparedness to access the OECD Anti-Bribery convention. 

to  manage  conflicts  of 

received 

interest; 

support 

to 

TAXUD:  The  new  Fiscalis4  and  Customs5  (2021-2027) 
programmes  have  been  adopted  and  are  operational,  thus 
ensuring continuity in the support.  

The  new  Customs  Control  Equipment  Instrument6  (2021-
2027), will provide financial support to the Member States to 

4 Regulation (EU) 2021/847, OJ L 188, 28.5.2021  
5 Regulation (EU) 2021/444, OJ L 87, 15.3.2021 
6 Regulation (EU) 2021/1077, OJ L 234, 2.7.2021 

12 

 
                                                           
 
 
purchase  customs  control  equipment  and  contribute  to  an 
adequate  and  equivalent  level  of  customs  controls  across  the 
EU. 

OLAF:  In  2020  technical  support  was  provided  under  the 
Hercule  III  programme  to  Member  States’  national  and 
regional authorities, through grants and procurement activities. 
Various  projects  contributing  to  the  fight  against  fraud  were 
funded,  such  as  the  purchase  of  investigation  tools  and 
methods, the acquisition of detection devices or of specialised 
systems for the recognition of vehicle number plates as well as 
container  codes,  for  purposes  related  to  the  protection  of  EU 
financial interests.  

The  Programme  also  provided  funds  for  the  procurement  of 
subscriptions,  on  behalf  of  law  enforcement  authorities  in 
Member  States,  to  commercial  databases  to  support  national 
operations  and  investigations.  Specific  IT  tools  for  data 
analysis were developed with funding from the programme, in 
association  with  the  Joint  Research  Centre  (JRC),  and 
the  Members  States’  Customs  Authorities, 
provided  to 
facilitating their effective and efficient use of analytical data.  

The new Union Anti-Fraud programme (2021-2027) continues 
this  support  in  the  technical  assistance  component,  with  an 
increased focus on the expenditure side of Union’s budget and 
on  data  analytics.  The  first  Calls  for  Proposals  for  2021  has 
been finalised and the first generation of grants for Technical 
Assistance were awarded in March 2022.   

REGIO:  The  final  report  on  a  Compendium  of  Good  (fraud 
prevention)  practices  was  adopted  in  2020  as  part  of  the 
technical  assistance  to  Member  States  for  Administrative 
Capacity Building.  

In  2021  new  measures  were  offered  to  Member  States 
authorities  comprise  and  e-learning  module  covering  basic 
knowledge  needed  for  staff  training,  and  guidance  together 
with an online toolbox with practical case examples and case 
studies, which provide information on good practices.  

Technical  assistance  is  given  further  emphasis  in  DG 
REGIO’s next 2021 – 2027 legal basis (Articles 29 and 30).  

13 

 
To enhance the knowledge and increase cooperation on fraud 
prevention  and  prevention  of  conflicts  of  interests  and  other 
irregularities,  REGIO  also  organized  two  EGESIF  meetings 
and  participated  in  several  anti-fraud  network  meetings  with 
OLAF. 

in  2022 

of  mid-June 

2022, 
20 presentations, 

In  2021  and 
the ARACHNE  Team  organised 
continuous technical support and training actions in relation to 
activity 
the 
tool.  As 
included: 1  workshop, 
financial 
management  and  audit  seminars  and  5  training  sessions  for 
Member States.  
OLAF  is  continuously  analysing  fraud  patterns  and  fraud 
risks. In June 2021, for example, a report on the potential risks 
in the funding of health infrastructure was finalised, with cases 
from  IMS  as  well  as  OLAF  investigations.  In  2022,  OLAF 
finalised a casebook of agricultural cases with DG AGRI. 

such 
6 

Done 
and 
continuous 

and 

2021 
then 
continuous 

20  Analyse  fraud  patterns  and  fraud  risks  using  case 
compendiums  of  OLAF  investigations  according  to 
needs identified. 

OLAF 

A.5 Transparency 

Nr  Action 

Lead service 

Action taken  

(State-of-play) 

Status 

Due date 

21  Refine the TED database to improve data quality. 

OP 

Closely  monitor  Member  States’  input  to  the  TED 
database.  Consider  the  possibility  of  audits  or 
external evaluation. 

Support: 
GROW 

Since  1  September  2020,  all  procurement  data  received  for 
publication follows a structured, standard format.  

Done 

Normalisation  of  official  names  of  European  institutions  in 
procurement notices is implemented since 01/08/2021. 

2020  and 
then 
continuou
s 

22 

Explore  the  possibility  of  using  existing  IT  tools 
(Financial  Transparency  System,  Single  Electronic 
Data Interchange Area, etc.) to improve information 
on  procurement  contracts  and  grant  agreements 
concluded by the services, having due regard to the 
requirements mentioned in Article 38(2) FR. 

BUDG, 
RTD 

JRC, 

Support: 
GROW, 
DIGIT, OP, SJ 

eGrants  is  the  corporate  IT  system  for  managing  the 
Commission’s direct grants. The target coverage of eGrants is 
95% of all directly managed programmes, and it is planned to 
be  completed  within  the  first  3  years  of  the  2021-2027 
Multiannual  Financial  Framework.  This  will  comprise  62 
programmes covered by eGrants. 

Done  

2020-2021 

The  relevant  information  is  automatically  transmitted  to  the 
Financial Transparency System (FTS). 

The Commission adopted a proposal for a targeted amendment 
of  the  Financial  Regulation  on  16  May  2022.  In  this context, 

14 

 
 
 
the  Commission  proposed  to  enhance  the  existing  Financial 
Transparency System (currently in use for direct management) 
by  expanding  the  information  there published  to  recipients of 
EU  funding  in  all  management  modes  of  the  EU  budget, 
including  budget  implementation  by  other  Union  institutions 
and  bodies.  The  new  provisions  will  apply  to  programmes 
adopted under and financed as from the post-2027 MFF. 

A.6 Fraud-proofing of the legal framework for the implementation of the budget 

Nr  Action 

Lead service 

Action taken  

(State-of-play) 

Status 

Due date 

23  When  drafting  legal  instruments  for  the  MFF  after 
2020,  involve  OLAF  at  the  early  stages  to  ensure 
adequate  provisions  on  preventing,  detecting  and 
prosecuting fraud.  

Spending 
services7 

Support: 

OLAF/BUDG 

includes 

systemic 

This  includes  legislative  proposals,  delegated  and 
implementing  regulations.  It  also 
the 
following types of documents, if such documents are 
of 
for  a  policy  area: 
implementing  decisions,  model  contracts  and 
agreements,  guarantee 
agreements,  delegation 
agreements,  calls  for  tenders/proposals/expressions 
of interest, and policy guidelines.  

importance 

All  Commission  proposals  for 
the  post-2020  spending 
programmes  include  standard  provisions  on  protecting  the 
EU’s financial interests. 

Done 
and 
continuous 

Continuous 

Commission spending services are fully aware of the need to 
ensure continued consultation of OLAF. 

Permanent  guidance  of  that  type,  e.g.  INTPA’s 
Practical  Guide,  should  be  regularly  reviewed  as 
necessary, involving OLAF.  

Specify  appropriate  record-keeping  requirements  in 
the  context  of  financing  not  linked  to  costs  and 
simplified cost options, with a view to attaining the 
intended simplification  effect  while minimising  any 
negative  impact  simplification  measures  may  have 
on  the possibility  to  detect  and  deal  with  fraud  and 

7   And other services launching instruments with a potential impact on the protection of the EU's financial interests. 

15 

 
 
 
 
 
 
 
 
 
                                                           
other irregularities.  

24  Where  relevant,  include  fraud  risks  in  impact 
assessments  and  evaluations  of  legal  acts  and 
Commission 
the 
under 
Commission’s Better Regulation framework.  

required 

policies 

25 

26 

Funding instruments must give the EPPO and OLAF 
–  within  the  limits  of  their  respective  competences 
and in line with the law applicable to these bodies – 
authority  to  investigate  suspected  fraud  in  any  EU-
financed  programmes/projects,  obliging  persons  or 
entities  receiving  Union  funds  to  provide  access  to 
their premises and staff and all relevant documents, 
information,  etc.,  on  request.  Recipients  must  be 
bound to oblige, in any contracts they conclude with 
third parties for the implementation of the project or 
funding  scheme,  those  third  parties  to  provide  for 
such  access rights, permitting  the EPPO  and OLAF 
also  to  check  on  all  subcontractors,  subsidiary 
companies  and  implementation  partners  under  any 
management mode. 

The  same  principles  apply,  mutatis  mutandis,  to 
transactions supported by budgetary guarantees. 

Examine  in  how  far  certification  against  ISO 
standards,  most  notably  ISO  37001  on  anti-bribery 
management  systems,  could  be  required  from 
entities  applying  for  EU  funds  or  involved  in  their 
implementation  under  direct,  indirect  or  shared 
management with a view to reducing fraud risks. 

In  April  2021, 
a  new 
the  Commission 
Communication  on  Better  Regulation.  The  new  Better 
Regulation  Toolbox  is  being  finalised.  OLAF  has  been 
involved to enhance the anti-fraud aspects. 

adopted 

Done 

Continuous 

All  Commission  proposals  for 
the  post-2020  spending 
programmes  include  standard  provisions  on  the  protection  of 
the EU’s financial interests. 

Done 
and 
continuous 

Continuous 

Agreements  (guarantees,  contributions,  partnerships)  with 
implementing  partners  adopted  in  the  framework  of  external 
aid  actions  will  have  OLAF-relevant  clauses  inserted  in  the 
texts. 

The  ISO  certification  has  been  carefully  assesssed  in  the 
context  of  the  revision  of  the  Financial  Regulation,  but 
considered  to  go  against  simplification  measures  proposed  as 
one of the main focus areas of this revision. 

  Done 

2021 

All services 

Coordination: 

SG 

Support: 
OLAF 

Spending 
services 

Coordination: 
BUDG 

Support:  

OLAF, SJ 

OLAF 

Support: 

GROW, 
HOME, 
BUDG, 
Spending 
services 

SJ, 

A.7 Miscellaneous 

Nr  Action 

Lead service 

Action taken (state-of-play) 

Status 

Due date 

16 

 
 
 
27 

For  lump  sums  and  financing  not  linked  to  costs, 
develop – across the different management modes – 
control  strategies  for  deliverables  and  for  the 
analysis  of  non-/under  delivery,  in  particular  to 
detect fraud.  

Spending 
services 

Support: 

OLAF, BUDG 

A  training  session  on  Simplified  Cost  Options  (SCOs)  was 
given in OLAF on 28 January 2020, in coordination with the 
DG  EMPL.  Coordination  with  the  work  of  the  RUF  (Réseau 
des  Unités  Financières/Finance  Units’  Network)  on  direct 
expenditure has been launched. 

Done and 
continuous 

and 

2020 
then 
continuous 

Two interactive presentations on lump sums and financing not 
linked  to  costs took  place in  the  RUF’s  monthly  meetings of 
February  and  March  2020,  during  which  many  DGs  shared 
their experience. 

Since December 2020, DG BUDG has given four information 
sessions  on  the  use  of  simplified  forms  of  grants,  open  to 
colleagues  in  all  services  and  agencies.  These  information 
sessions  give  an  overview  of  the  rules  for  using  simplified 
forms  of  grants,  including  how  they  can  be  authorised  and 
acceptable methodologies that can be used to set amounts. As 
from  2022,  the  SCOs  topic  will  be  integrated  in  one  of  DG 
BUDG  workshop  on Grants  together  with  a specific exercise 
on it.   

The DGs must also explain in their  annual activity report their 
control strategies for the use of SCO, if applicable. 

The  Commission  published  the  ‘Guidance  on  the  avoidance 
and  management  of  conflicts  of  interest  under  the  Financial 
Regulation’ on 9 April 2021. 

Done 

2020 

28 

Ensure appropriate coverage of fraud-related aspects 
in the Commission guidelines on Article 61 FR. 

BUDG 

Support: 

OLAF, HR, SJ, 
SG 

29 

Evaluate  fraud  risks  and  vulnerabilities  with  regard 
to spending in emergency situations. 

in 

Spending 
services, 
particular 
ECHO, 
HOME, FPI 

OLAF, in collaboration with relevant Commission’s services, 
has  developed  an  evaluation  of  fraud  risk  and  vulnerabilities 
with  regards  to  spending  in  emergency  situations.  The 
evaluation  was  finalised  in  May  2022  and  disseminated  to 
relevant services.  

 Done 

2021 

30 

Regularly  revise  and  update  the  corporate  IT 
security  strategy  and  monitor  its  implementation. 

Coordination: 

OLAF 

Support: 

BUDG 

DIGIT 

The  IT  security  strategy  was  adopted  by  the  IT  and 
Cybersecurity  Board  (ITCB)  in  February  2019,  with  an 

Done 

and  Continuous 

17 

 
 
 
 
 
 
 
 
 
Optimise  the  systems  of  the  Commission  and  the 
executive  agencies  for  secure  operation  of  e-
procurement,  e-grants  and  other  channels  of  e-
governance.  

associated  action  plan.  The  implementation  of  the  strategy  is 
closely monitored and reported on to the ITCB on a quarterly 
basis. The IT strategy undergoes a regular revision process on 
a  bi-annual  basis.  The  revision  process  of  the  strategy  was 
launched in Q3/Q4 2020, and the resulting updated version for 
2021-2022 was presented to the ITCB for adoption in January 
2021. 

continuous 

Status 

Due date 

Done 
and 
continuous 

2020 

A.8 Expenditure 

a)  Direct management 

Nr  Action 

Lead service 

Action taken (State-of-play) 

31 

If  not  yet  done,  set-up  advisory  peer  groups  for 
clusters  of  services  to  review  riskier  (e.g.  larger, 
complex) projects, in the frame of internal control.  

All services 

Coordination: 

BUDG 

Support: 

OLAF, GROW 

The  RRF  and  e-Procurement  can  be  considered  ‘complex’ 
projects  for  which  clusters  of  services  are  involved.  A  wide 
group  of  Commission  services  is  in  charge  of  assessing 
Member States’ RRF plans and the achievement of milestones 
and targets. 

E-procurement  is  part  of  the  Commission’s  actions  to  put  in 
place a single data interchange area for submitting, storing and 
processing data in grant and procurement procedures. This is a 
Commission-wide  initiative  involving  many  DGs  developing 
four  business  processes:  preparation  (JRC),  submission  and 
evaluation  (GROW),  contract  management  (INTPA)  and 
inventory and logistics management (OIB). The objectives of 
the  contract  management  process  are  to:  be  fully  integrated 
with  the  financial,  budgetary  and  accounting  processes 
(ABAC,  later  SUMMA);  re-use  the  solid  architecture  of 
eGrants (SEDIA solutions, SYGMA). 

The  GPSB  (Grants  Procurement  Steering  Board)-  SUMMA 
common  working  group  was  set  up  to  design/optimise  the 
SYGMA-SUMMA solution. 

The e-Procurement project is scheduled to be 90% completed 
in 2024.  

32  Maintain  and  reinforce  the  corporate  procurement-
related  training  cycle,  a  procurement  community  of 
practice,  and  continuous  support  (e.g.  templates, 
helpdesk),  including  training  and  support  for  staff 

HR / BUDG 

Support: 

The  corporate  procurement-related  training  cycle  is  in  place 
and contains fraud prevention elements. 

Done 
and 
continuous 

Since  October  2021,  an  eLearning  on  Procurement  basics  is 

and 

2019 
then 
continuous 

18 

 
 
 
 
 
 
 
 
who  are  exceptionally  involved  in  a  procurement 
process (e.g. policy officers). 

GROW, OLAF  available  for  staff  members  in  charge  of  public  procurement  in 
the  European  institutions,  bodies  and  Agencies,  including  those 
who work on operational and financial aspects.  This eLearning is 
designed  to  provide  participants  with  fundamental  skills  of 
Procurement. 

In  May  2022  a  revised  version  of  the  manual  “Procurement 
the 
basics”  has  been  made  available  on  BUDGpedia, 
knowledge  management  platform  for  all  financial  and 
budgetary matters. 

The training available also include targeted ad hoc sessions. 

33  Where  appropriate, 

include  specific  anti-fraud 
measures  among  the  ‘conditionalities’  for  budget 
support. 

For  budget  support  and  macro-financial  assistance, 
where  appropriate,  improve  control  strategies  and 
strengthen verification mechanisms. 

INTPA, 
NEAR, ECFIN 

Support:  

OLAF, BUDG 

34  Having due regard to data protection legislation, 

OLAF 

o  examine  the  possibility  of  setting-up  a 
database  of  experts  involved  in  EU-funded 
projects to prevent or detect double claims; 
and 

Support: 

Spending 
services, 
DIGIT, 
BUDG, SJ, SG 

o  explore  the  possibility  of  making  such  a 
database or certain elements thereof public, 
building  on  the  Financial  Transparency 
System  and  the  Register  of  Commission 
Expert Groups.  

35  Optimise  internal  workflows  regarding  budgetary 

BUDG 

guarantees. 

Support:  

All ECFIN MoUs and LFAs have general articles dealing with 
this  subject.  ECFIN  also  included,  where  useful,  specific 
conditions on that area in the MoU that partner countries need 
to comply with in order to get the instalment disbursed. 

Done 
and 
continuous 

and 

2020 
then 
continuous 

The recommendations of the ECA’s special report 25/2019 are 
implemented,  with  additional  safeguards  where 
being 
appropriate.  The 
recommendations  have  been  
reflected  in  the  template  in  use  for  action  documents, 
financing  agreements  and  disbursement  files  for  budget 
support.  

report’s 

A database of experts exists; there are calls for expressions of 
interest,  where  the  contractual  conditions,  including  data 
protection  issues,  are  made  available  to  the  experts.  Most  of 
the  experts  are  managed  by  the  eExpert  IT  tool  linked  to 
SYGMA  and  eGrants  under  the  management  of  DG  RTD/ 
REA. 

The  expert  contracts  with  an  amount  >  15  KEUR  are  indeed 
published under the FTS regulations (by DG BUDG based on 
data  in  ABAC).  Annual  lists  of  contracted  experts  are 
published  in  the  Funding  &  Tender  Portal.  As  for  the 
“Register  of  Commission  Expert  Groups  and  Other  Similar 
Entities”,  the  names  of  the  experts  are  also  published  (under 
Expert Groups – Details – Members). 

and 
Done 
continuous 

2021 

A  Steering  Committee on  Contingent  Liabilities  arising  from 
Budgetary  Guarantees  was 
the 
Commission  Decision  of  24  July  2020  (C(2020)  5154  final). 
The  Committee  is  composed  of  representatives  of  the  DGs 

established 

through 

 Done 

2020 

19 

 
 
 
 
 
 
 
 
 
 
 
ECFIN, 
OLAF, 
INTPA, NEAR 

ECFIN,  INTPA,  NEAR  and  SG.  The  Steering  Committee 
focuses on cross-cutting issues covering budgetary guarantees 
and financial assistance. 

A.8 Expenditure 

b)  Indirect management 

Nr  Action 

Lead service 

Action taken (State-of-play) 

36  Obtain assurance about internal control of entrusted 
fund 

intermediaries, 

(sub-) 
financial 
entities, 
managers, etc., e.g., through: 

o  Positive  assessment  of  the  equivalence  of 
the  entities’  systems,  rules  and  procedures 
with those of the Commission regarding the 
pillar  on  internal  control  as  provided for  in 
Article  154(3)  and  (4)(a)  FR,  including 
error, 
controls 
irregularities and fraud, which must allow to 
properly  and  timely  prevent,  detect  and 
correct fraud and other irregularities; 

concerning 

risks 

of 

o  Encouraging  the  exchange  of  best  practice 
regarding  anti-fraud  policies,  including  in 
the  domain  of  financial  instruments  and 
budgetary guarantees. 

Spending 
services 

Support: 

BUDG, 
ECFIN, 
INTPA, OLAF 

Several  pillar  assessments  of  entities  eligible  to  implement 
Union  funds  under  indirect  management  have  been  finalised 
by DG ECFIN, as lead DG, in 2021 for the primary purpose of 
the  InvestEU  Programme  and  others  will  be  finalised  before 
the relevant agreement is concluded with any of them. 

In general terms, to be entrusted with the management of EU 
funds any entity should have its rules, systems and procedures, 
among  wich  those  related  to  internal  control  (pillar  (1)) 
assessed  positively:  the  current  methodology  for  this  pillar 
assessment 
the  Terms  of  Reference 
is 
(C(2019)2882).  

reflected 

in 

If  failed,  relevant  contractual  measures  are  included  in  the 
agreement  signed  between  the  entity  and  the  Commission, 
covering the weaknesses identified in the assessment. 

Regards  exchange  of  best  practice,  work  is  ongoing  in  the 
framework  of  the  InvestEU  Working  Group  and  InvestEU 
investment guidelines. 

Status 

Due date 

Done 
and 
continuous 

Continous 

20 

 
 
 
 
 
 
 
 
A.8 Expenditure 

c)  Shared management 

Nr  Action 

37 

Encourage  Member  States  to  put  in  place  national 
anti-fraud strategies, and provide advice and support 
in this respect.  

Lead service 

Action taken (State-of-play) 

REGIO, 
AGRI,  EMPL, 
MARE, 
HOME 

In  recent  years,  the  Commission  has  encouraged  Member 
States  to  adopt  national  anti-fraud  strategies.  By  the  end  of 
2021,  16  Member  States8  had  reported  adopting  their 
strategies. 

Coordination 
and 
OLAF 

support: 

The recommendation for Member States to develop or update 
their  national  anti-fraud  strategies  was  repeated  in  the  2020 
PIF Report of September 2021. 

Status 

Due date 

and 
Done 
continuous 

Continuous 

REGIO encouraged the program authorities to make an update 
analysis of the specific fraud risks in each program, both in the 
context  of  the  adoption  of  the  2014  –  2020  program 
amendments, to integrate CRII, CRII+ and REACT EU related 
objectives  in  the  measures  financed  under  the  programs,  and 
in the negotiations on new operational programs for the 2021 
– 2027 period. 

In  May  2021,  REGIO  asked  the  ESF/ESF  programme 
authorities  to  update  their  fraud  risk  assessment  and  to  adapt 
accordingly  their  anti-fraud  measures.  The  above  letter 
mentions  as  well  the  risks  linked  to  the  additional  funding 
made  available  via  the  Recovery  and  Resilience  Facility 
(RRF). 

Delegated Regulation 2022/127 now includes the need for the 
Member States’ Paying Agencies implementing the Common 
Agriculture  Policy  (CAP)  to  have  an  antifraud  strategy  in 
place  in  the  context  of  their  accreditation  criteria  (so  the 
criteria  to  be  respected  in  order  to  be  accredited  as  a  Paying 
Agency  implementing  the  CAP  –  there are in  fact  76 Paying 
Agencies as some Member Sates have more than one – in that 

8 Austria, Bulgaria, Croatia, Czechia, Denmark (sectoral; pending updates), Estonia, France, Germany (sectoral), Greece (sectoral), Hungary, Italy, Latvia, Lithuania, Malta, Portugal (sectoral; 
pending updates), Slovakia. Out of these, Portugal has indicated having adopted a sectoral strategy, but has not yet formally transmitted it to the Commission. 

21 

 
 
                                                           
 
 
 
38  Where  appropriate  and  possible,  reinforce  Member 
the  post-2020  MFF 

for 

States’  obligations 
throughout the anti-fraud cycle. 

39 

Explore  the  possibility  of  applying  the  underlying 
rationale of Action Point 36 to financial instruments 
under shared management. 

REGIO, 

1) 
EMPL, 
MARE, 
HOME 

Coordination: 
REGIO 

2) 
AGRI 
Support  (ad  1 
and 2): BUDG, 
GROW, 
OLAF, SJ 

REGIO, 
EMPL, 
MARE,  AGRI, 
HOME 

Coor- 

dination: 
REGIO 

Support: 

OLAF, 
BUDG, SJ 

JRC, 

case  also  a  Coordinating  Body  needs  to  be  in  place).  This 
Regulation will apply from 1 January 2023 in connection with 
the  new  CAP  and  in  particular  the  financial  rules  of 
Regulation 2021/2116 

The Commission has proposed, for example, to make the use 
of  risk  scoring  tools  by  Member  States  mandatory.  The  new 
Financial  Regulation  (recast)  will  make  the  use  of  the  single 
integrated  IT  system  for  data-mining  and  risk-scoring 
mandatory 
financial 
framework. 

the  post-2027  multiannual 

from 

Whenever  possible,  OLAF  has  asked  to  have  specific  anti-
fraud  provisions  included  in  the  Member  States’  partnership 
agreements  and  operational  programmes,  for  example  with 
regard  to  the  strengthening  of  administrative  capacities  to 
detect,  report  and  follow-up  on  irregularities  and  on  fully 
exploiting 
such  as 
ARACHNE. 

the  available  data-mining 

tools, 

The Member States’ activities referred to, are those  relating to 
their obligation to have effective anti-fraud measures in place 
as  laid  down  in  article  125.4  c)  of  the  CPR    2014-2020  and 
in  article 74.1 c) of the CPR 2021-2027 respectively. 

Regulation 2021/2116 to the reference to the CPR as also for 
the CAP Member States have (and also had under the previous 
rules) to have antifraud measures in place. 

The possibility has been explored. Following discussion with 
the  pillar 
DG  BUDG  and  shared  management  DGs, 
assessment  is  not  considered  to  be  appropriate  for  shared 
management  DGs.  The  requirements  to  collect  and  make 
available  in  the  management  systems,  for  control  purposes, 
final  
dedicated 
beneficiaries,  recipients, contractors and sub-contractors have 
been  further  sharpened  following  the  negotiations  on  the 
2021-2027  common  provisions  regulation  in  the  field  of 
cohesion (see Annex to Article 63 new CPR). 

information 

beneficial 

owners, 

on 

Done 
and 
continuous 

2019-2020 

Done 
and 
continuous 

2021 

In  the  new  CAP  that  will  apply  from  1    January  2023,  there 
will  be  an  obligation  for  the  Member  States  to  collect 
information  necessary  for  the  beneficiaries’  identification, 
including, where applicable, the identification of the group in 

22 

 
 
40 

European Semester:  

Analyse/monitor  Member  States’  general  anti-
corruption policies through the country reports.  

Explore  the  possibility  and  merits  of  extending  the 
country reports to cover Member States’ policies for 
protecting the EU’s financial interests from fraud. 

41 

Promote  integrity  pacts  for  safeguarding  EU  funds 
against fraud and corruption 

HOME 

SG 
Support: 
OLAF 

REGIO 

Support: 
GROW 

which  they  participate,  as  defined  in  article  2  of  Directive 
2013/34/EU.  This  information  will  also  be  published  by  the 
Member States for transparency. 

frameworks, 

DG HOME conducts a yearly analysis of Member States’ anti-
corruption 
legislation  and  policies.  The 
Commission’s annual rule of law report covers the monitoring 
and  analysis  of  the  anti-corruption  frameworks  of  all  27 
Member States. 

The annual sustainable growth strategy COM(2020)575 of 17 
September 2020 includes anti-fraud frameworks, as needed to 
boost absorption capacities of EU funds. 

OLAF, as lead service on matters related to the protection of 
the  Union’s  financial  interests,  follows  the  discussions  in  the 
European Semester country teams. 

Done  

Continuou 
2021 

The  Commission  promotes  integrity  pacts,  especially  for 
large-scale investments in the domains considered most prone 
to fraud. 

Done 
and 
continuous 

Continuous 

In  September  2021,  REGIO  presented  to  the  Board  of 
Directors a “Note on mainstreaming Integrity Pacts” . and put 
forward  the  Proposals  of  unit  E1  on  how  to  set  up  and 
mainstream  IPs  in  the  2021-2027  implementation  period  and 
how  to  support  geographical  units  and  national  actors  in  this 
process. 

42 

for 

the 

ex-ante 

voluntary 
the  compliance  of 

assessment 
Promote 
large-scale 
mechanism 
infrastructure  projects  with  EU  procurement  rules. 
Measures would include a helpdesk function and an 
information exchange mechanism. 

GROW 

Support: 
REGIO 

The  voluntary  ex-ante  assessment  mechanism  for 
the 
compliance  of  large-scale  infrastructure  projects  with  EU 
procurement rules is established and fully functioning under 2 
pillars: a helpdesk and a notification mechanism. 

Done 
and 
continuous 

Continuous 

23 

 
 
 
 
 
A.9 Revenue-traditional own resources (TOR) 

Nr  Action 

Lead service 

Action taken (state-of-play) 

43 

44 

45 

Review Council Regulation (EC) No 515/979 with a 
view  to  increasing  mutual  assistance  among  and 
cooperation with national customs authorities. 

OLAF 

level 

Continue  to  ensure  effective  and  efficient  fraud 
prevention  and  detection  in  the  area  of  TOR  at 
Commission 
through  a  strategic  steering 
function,  meeting  regularly  at  Director  and  at 
technical  level,  composed  of  TAXUD,  BUDG  and 
OLAF  as  permanent  members  and  other  interested 
services  (in  particular  TRADE,  AGRI,  MARE)  on 
an ad-hoc basis. 

Coordination: 
rotates  among 
TAXUD, 
BUDG 
OLAF.  

and 

Support: 

All TOR DGs 

in 

Strengthen  the  Commission’s  and  the  Member 
States’  analytical  capacities 
the  anti-fraud 
customs  area  by  sharing  approaches  and  good 
practices  and  by  increasing  awareness  and  making 
best  use  of  data  sources.  Improve  the  exchange  of 
risk  information  and  risk  analysis  through  the 
common  Customs  Risk  Management  System 
(‘Reshape of CRMS2’). 

OLAF 

JRC 

TAXUD 

Support: 

BUDG 

The  evaluation  of  Regulation  515/97  has  been  completed.  A 
report on the evaluation is to be published by Q3 2022 

Status 

Done  

Due date 

2020 

There  are  regular  strategic  steering  function  meetings  at 
Director level. 

and 
Done 
continuous 

Continuous 

Done 
and 
continuous 

Continuous 

The customs action plan was adopted on 23 September 2020. 

A Memorandum of Understanding (MoU) was signed between 
TAXUD,  OLAF  and  BUDG,  setting  the  framework  for  the 
cooperation  of  the  three  services  under  the  Joint  Analytics 
Capability (JAC). The JRC has joined the JAC in spring 2022 
with  an  addendum  to  the  existing  MoU  between  TAXUD, 
OLAF and BUDG. 

The  JRC  is  expected  to  boost  advancements  in  the  use  of 
statistical  data  analysis  and  Artificial  Intelligence  for  the 
detection  of  customs  fraud,  which  will  be  shared  and  tested 
with  OLAF  and  the  Member  State  Customs.  Methods  and 
models will be also studied in relation to the estimation of the 
TOR losses due to undervaluation, in synergy with BUDG and 
TAXUD 

OLAF, supported by the JRC, continues to work with Member 
State customs data analysts to share analytical experiences and 
improve learning. 

CRMS  2  was  released  in  December  2021  and  is  used  by 
Member States since the 1 January 2022. 

9   Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission 

to ensure the correct application of the law on customs and agricultural matters, OJ L 82, 22.3.1997, p. 1, as amended. 

24 

 
 
 
 
                                                           
46 

Strengthen  international  cooperation  on  customs 
matters,  with  Belarus,  China,  Georgia,  Moldova, 
Russia,  Ukraine  and  the  United  Arab  Emirates 
among others.  

TAXUD 

OLAF 

for 

Belarus - In December 2019, the Council adopted negotiating 
and  mutual 
directives 
administrative  assistance  (CCMAA)  agreement  with  Belarus 
and negotiating texts were exchanged in 2020. The scheduled 
negotiations have been put on hold for political reasons. 

cooperation 

customs 

a 

Continuous 

Partially 
done 
and 
continuous 

China  -  An  evaluation  study  on  implementing  the  customs 
cooperation  and  mutual  administrative  assistance  agreement 
(CCMAA)  with China has been finalised. The  final  report  of 
the  evaluation  study  was  published  in  October  2020.  The 
Commission’s  own  evaluation  of  the  CCMAA  is  currently 
ongoing, to be finalised in the third quarter of 2022. 

The  Western  Balkans  and  Turkey  were  party  to  Customs 
2020 programme. 

Moldova  -  The  preparation  for  the  mutual  recognition  of 
Authorized  Economic  Operators  (AEO)  between  the  EU  and 
Moldova  started  in  April  2020.  Assessment  of  Moldova’s 
2020, 
AEO 
recommendations  were  sent  and  Moldova  amended 
its 
legislation  accordingly.  The  Parliament  adopted  the  new 
customs code in line with the Union Customs Code in August 
2021. 

legislation  was 

completed 

in  May 

IT  system  for  exchange  of  AEO  information  was  developed 
by  Moldova  in  July  2021.  Testing  of  the  IT  system  was 
finalised  in  January  2022.  The  EU  AEO  expert  team 
confirmed  the  compatibility  of  both  EU  and  Moldova  the 
AEO security programmes.  

Turkey  -  First  meeting  with  Turkey  concerning  a  MRA 
Partnership  on  11  March  2021.  A  follow-up  IT  happened  on 
26  April  2021  about  the  Interface Control  Document  and the 
way  the  MRA  exchange  of  data  should  work.  The  testing 
process  of  the  automated  exchange  of  info  could  start  at  the 
end  of  Q2  –  beginning  of  Q3  2022  provided  that  Turkey 
communicate timely the contacts of its dedicated team. 

Proposal  for  an  agreement  was  prepared  in  February  2022. 
Adoption by the Council of the EU of the proposed agreement 
is foreseen in July,  while the signature by  both  parties  in  Q3 

25 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2022. 

Ukraine - Ukraine develops a national Authorized Economic 
Operators  (AEO)  programme.  In  March  2021,  first  national 
AEO  authorisation  was  awarded.  Prior  to  February  2022, 
Ukraine  deployed  great  efforts  to  support  companies  in 
Ukraine to apply for the AEO status in Ukraine with the aim 
to increase the number of UA AEO status holders also within 
the  perspective  to  prepare  for  the  AEO  mutual  recognition 
with the EU. 

Common  Transit  Convention  -  There  is  work  in  progress 
towards  the  accession  to  the  Common  Transit  Convention  of 
Ukraine,  Moldova,  Georgia,  Montenegro  and  Bosnia- 
Herzegovina,  with  all  five  countries  working  on 
the 
deployment  of  New  Computerised  Transit  System  (NCTS). 
Negotiations  enabling  these  and  other  non-EU  countries  to 
participate  in  the  new  EU  Customs  and  Fiscalis  programmes 
were launched in October 2021 for 10 countries (AL, BA, XK, 
ME,  MK,  RS,  TR,  MD,  GE  and  UA).  By  the  end  of  June 
2022,  negotiations  for  both  programmes  have  been  finalised 
for AL, GE, XK, MK, ME and USA. 

47  Develop  anti-fraud  measures  in  preferential  tariff 

OLAF 

arrangements. 

Negotiations  are  ongoing 
in  particular  with  Australia, 
Indonesia  and  Tunisia.  Agreement  has  been  reached  on  an 
anti-fraud clause with Chile and New Zealand. 

Done 
and 
continuous 

48 

Implement the 2nd Commission Action Plan to fight 
2018-202210,  
the 
with a view to: 

tobacco 

illicit 

trade 

OLAF 

Implementation  is  ongoing,  with  additional  key  initiatives 
completed or in progress. 43 actions out 49were completed.  

Partially 
done 

and 

2020 
then 
continuous 

Continuous 

- deepening engagement with key source and transit 

countries; 

- addressing the issue of non-branded ‘cheap whites’ 
cigarettes in particular. 

10  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee of 7 December 2018, COM (2018) 846 final. 

26 

 
  
 
                                                           
A.10 Revenue – Value added tax (VAT) 

Nr  Action 

Lead service 

Action taken (state-of-play) 

49 

Support  the  adoption  and  phasing-in  of  a  revamped 
VAT  system11,  under  which  cross-border  intra-EU 
transactions will be taxed in the customer’s country, 
while  reporting  and  payment  of  VAT  is  carried  out 
in the Member State of the supplier. 

TAXUD 

50 

on 

Support  the  implementation  of  the  amendments  to 
the  Council  Regulation 
administrative 
cooperation and combating fraud in the field of VAT 
(2010/904/EU),  in  particular  with  regard  to  data 
exchanges  and  cooperation  among  tax  authorities 
and  Eurofisc  and  with  OLAF,  Europol  and  the 
EPPO. 

Reinforce  Eurofisc’s  role  in  tackling  cross-border 

TAXUD, 

OLAF 

The last proposal for a Directive on the definitive VAT system 
has been discussed in Council but no progress has to date been 
made  to  move  towards  this  system.  The  latest  discussions 
focused on the possibility of including measures, additional to 
and  compatible  with  those  featuring  in  the  proposal,  to 
strengthen the fraud- proof character of that definitive system. 

The proposal on a definitive VAT system remains on the table 
of  the  Council.  In  addition    the  Commission  will  present  a 
proposal  on  “VAT  in  the Digital  Age”  in  the  second    half  of 
2022. Discussions in Council will go on well beyond 2023. 

The  2020  Tax  Action  Plan  on  fair  and  simple  taxation 
announced  a  legislative  proposal  in  2022  under  the  heading 
‘VAT in the Digital Age’. This initiative intends to elevate the 
use of IT as a tool for easier compliance and a more efficient 
fight against fraud by modernising VAT reporting obligations 
and  facilitating  e-invoicing.  It  will  also  include  an  update  of 
the VAT rules for the platform economy, an extension of the 
One  Stop  Shop  (OSS)  and  improvements  to  the  Import  One 
Stop  Shop  (IOSS).  This  initiative  is  expected  to  have 
comparable results to the definitive VAT regime. 

The  Commission  has  produced  a  guide  to  the cooperation  of 
the  Eurofisc  network  with  OLAF  and  Europol  to  fight  VAT 
fraud  based  on  the  new  legal  base  introduced  in  2018.  The 
guide has been endorsed by Eurofisc and is now being used by 
Member States. 

Exchanges of information with some Member States based on 
Regulation (EU) 904/2010 have already taken place as part of 
OLAF investigations, with encouraging results. 

Status 

Due date 

Ongoing 

Continuous 

Done 
and 
continuous 

Continuous 

11  Commission Proposal of 4 October 2017 for a Council Directive amending Directive 2006/112/EC as regards harmonising and simplifying certain rules in the value added tax system and 
introducing the definitive system for the taxation of trade between Member States, COM (2017) 569 final and Commission Proposal of  25 May 2018 for a Council Directive amending 
directive  2006/112/EC  as  regards  the  introduction  of  the  detailed  technical  measures  for  the  operation  of  the  definitive  VAT  system  for  the  taxation  of  trade    between  Member  States, 
COM(2018) 329 final. 

27 

 
                                                           
 
 
VAT fraud, particularly by  making better use of the 
information available within the network. 

51 

the 

Strengthen 
international  exchange  of  best 
practice.  Based  on  Council  mandates,  strengthen 
administrative co-operation and mutual assistance in 
the recovery of VAT claims with non-EU countries. 

TAXUD 

Ongoing 

Continuous 

The  Commission  is  working  on  streamlining  the  cross-
checking  of  customs  and VAT  data  on  VAT  exempt  imports 
(customs  procedure  42)  that  would  use  Eurofisc  and  OLAF 
capabilities. 

The  Commission  will  consider  international  cooperation  for 
the fight against VAT fraud and for recovery assistance based 
on  an  assessment  of  the  interests  of  the  EU.  Following  the 
Council’s endorsement to conclude a non-binding agreement, 
TAXUD  met  the  Chinese  State  Taxation  Administration 
(STA) in May 2021. The parties agreed to start the procedure 
to conclude a Memorandum of Understanding (MoU) between 
the  EU  and  China  on  VAT  administrative  cooperation  and 
exchanged  a  first  draft  in  July  2021.  The  negotiations  are 
currently on-hold due to the political context. 

to 

The  Commission 
improve  VAT 
is  also  working 
administrative  cooperation  and  recovery  of  claims  assistance 
with  other  third  countries  such  as  Canada,  Japan  and  New 
Zealand through exploratory talks. The exploratory talks with 
Canada  and  New  Zealand  have  not  given  any  results  until 
now.  With  Japan  exploratory  talks  are  ongoing  at  technical 
level.  

In view of also improving the VAT administrative cooperation 
the Commission has asked the Council for a mandate to revise 
the EU-Norway Agreement on administrative cooperation and 
recovery of claims in order to include the new tools for such 
introduced  by  amendments  of  Regulation 
cooperation 
904/2010.  On  17  June, 
the 
Commission  to  open  negotiations  on  the  agreement  with 
Norway.  The  Commission  is  ready  to  start  the  written 
procedure concerning the Decision of the Joint Committee to 
open  negotiations.  The  Commission  is  also  working  on  the 
full  implementation  of  the  VAT  Protocol  of  the  Trade  and 
Cooperation agreement with the UK. 

the  Council  authorised 

28 

 
 
 
 
 
B. Investigation 

B.1 European Public Prosecutor’s Office (EPPO) and PIF Directive 

Nr  Action 

Lead service 

Action taken (state-of-play) 

52 

Support  the  setting-up  of  the  EPPO  and  provide  it 
with administrative assistance in the start-up phase. 

JUST / OLAF 

Support: HR, 

BUDG, OIL 

53 

Cooperation with the EPPO: 

All services 

The Commission, like all EU institutions and bodies, 
and  national  competent  authorities,  must  without 
undue  delay  report  to  the  EPPO  any  criminal 
conduct in respect of which the EPPO could exercise 
its 
(Article  24  of  Regulation 
2017/193913). To comply with this obligation by the 
time the EPPO becomes operational, services should 
have  efficient  procedures  in  place  to  carry  out  a 
preliminary  evaluation  of  allegations  reported  to 

competence 

Support: 
OLAF 

OLAF and the Commission have been working on setting up 
the  EPPO  since  the  entry  into  force  of  the  Regulation 
(November 2017). 

Since  the  formal  constitution  of  the  EPPO  College  on  28 
September  2020,  the  Commission  has  almost  entirely  ceased 
to provide provisional administrative support to the EPPO, in 
accordance with Article 20(4) of the EPPO Regulation12. The 
EPPO  adopted  its own  financial  rules  on  13 January  2021  as 
part of the process towards financial autonomy. It has reached 
administrative  autonomy  and,  on  1  June  2021,  started  its 
operational activities. 

At  the  request  of  EPPO,  OIL  continues  to  support  the  EPPO 
by  providing  procurement  and  logistics  services,  based  on  a 
service-level agreement (SLA). 

Dedicated training on OWNRES and WOMIS databases (info 
available  and  use)  to  be  organised  by  BUDG  in  April/May 
2022. 

Shortly  after  the  entry  into  operation  of  the  EPPO  in  June 
2021, the Commission and the EPPO concluded an agreement 
on their mutual cooperation (lead service in the Commission: 
the  Secretariat-  General).  On  29  June  2021,  the  Corporate 
Management  Board  endorsed  the  internal  workflows  within 
the Commission to implement the agreement. 

These  envisage  that  OLAF,  as  Commission  service,  will 
transmit  notified  allegations  of  fraud  and  other  breaches 
potentially  falling  within  the  EPPO’s  competence  to  the 
EPPO, following a preliminary evaluation. 

Status 

Done  

Due date 

2019-2020 

Done 
and 
continuous 

2020 
and 
continuous 

12 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) 
13  Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the  establishment  of  the  European  Public  Prosecutor’s  Office  (‘the  EPPO’),  OJ  L  283, 

31.10.2017, p. 1. 

29 

 
 
 
 
 
                                                           
them. 

The  EPPO  Regulation  provides  that  EU  institutions 
and  bodies  may  make  use  of  OLAF  for  this 
preliminary  evaluation  (Recital  51).  Commission 
services 
should 
systematically  make  use  of  OLAF's  expertise  as  a 
final  quality  control  for  the  preliminary  evaluation 
of  allegations  and  put  in  place  the  necessary 
procedures for that to happen. 

executive 

agencies 

and 

OLAF will provide guidance and procedural rules for services 
on how to report fraud and how to work with OLAF and the 
EPPO.  In  addition,  the  relevant  horizontal  services  (SG,  LS, 
DG  BUDG,  HR.IDOC  and  OLAF)  are  developing  templates 
to  ensure  that  instances  of  alleged  fraud  detected  and/or 
notified  by  Commission  services  to  the  EPPO  under  the 
Commission-EPPO Agreement are clearly identified as such. 

The  Corporate  Management  Board  has  to  designated  OLAF, 
acting  as  Commission  service,  as  the  Commission‘s  contact 
point for most types of communication flows with the EPPO, 
whilst  designating  the  SG,  the  Legal  Service,  DG  BUDG 
and/or HR.IDOC as contact points or associated contact points 
for  specific  processes  (ie  the  opening,  results  or  dismissal  of 
EPPO 
investigations  concerning  Commission  staff  or 
members; requests for the participation of the Commission as 
a civil party in court proceedings; requests for the appearance 
of  Commission  members  or 
the  Secretary-General  as 
witnesses in EPPO proceedings; and requests for the waiver of 
immunity of Commission staff or members) 

In  parallel,  OLAF  continues 
complementarity with/support to the EPPO. 

its 

investigative  work 

in 

54 

Support  Member  States’ 
implementation of the PIF-Directive. 

transposition 

and 

JUST / OLAF 

Progress  on  transposition  was  discussed  in  meetings  of  the 
EPPO  Expert  Group  in  2020.  According  to  the  state  of 
transposition in the 26 Member States bound by the Directive, 
infringement 
of 
transposition  measures  were  opened,  brought  forward,  or 
closed in 2020. 

non-communication 

proceedings 

for 

and 
Done 
continuous 

and 

2019 
then 
continuous 

In  line  with  Art.  18(1)  of  the  PIF  Directive,  the Commission 
submitted  a  first  implementation  report  to  the  European 
Parliament  and  the  Council  two  years  after  the  transposition 
deadline in September 2021. 

Following  the  adoption  of  the  first  implementation  report, 
Letters  of  Formal  Notice  have  so  far  been  sent  to  seventeen 
Member States; to eight Member States in December 2021, to 
a further five Member States in February 2022 and to another 
four Member States in May 2022. 
According to Article 18(4) of the PIF Directive, in September 
second 
the  Commission  will  be  adopting  a 
2022 

30 

 
implementation  report,  assessing,  with  regard  to  the  general 
objective to strengthen the protection of the Union's financial 
interests, whether: 
(a) the VAT threshold indicated in Article 2(2) is appropriate; 
(b)  the  provisions relating  to  limitation  periods as  referred to 
in Article 12 are sufficiently effective; 
(c) the  PIF  Directive  effectively  addresses  cases  of 
procurement fraud. 

B.2 European Anti-Fraud Office (OLAF) 

Nr  Action 

Lead service 

Action taken (state-of-play) 

55  Negotiate the Commission's proposal for the review 

OLAF 

of the OLAF Regulation14 in order to: 

Regulation  (EU,  Euratom)  2020/2223  amending  Regulation 
883/2013 was published in the OJ on 28 December 2020 and 
entered into force on 17 January 2021. 

o  adapt  how  OLAF  operates  following  the 

establishment of the EPPO; 

o 

improve 
investigative role; and 

the  effectiveness  of  OLAF’s 

o  clarify and simplify the OLAF-Regulation. 

56  

a) 

Optimise  cooperation  between  services/other  EU 
bodies and OLAF by, among other actions: 

o  defining  the  role  and  responsibilities  of 
the  various 

in 

OLAF  contact  points 
services; 

o  making  the  reporting  of  information  of 
potential 
interest  more 
efficient  through  direct  channels  between 
the services and OLAF;  

investigative 

o  clarifying  as  necessary 

respective 
responsibilities of OLAF and the services at 
an operational level; 

the 

All services 

Coordination: 
OLAF 

Support:  SG, 
BUDG, partner 
DGs  of  other 
EU bodies  

The  OLAF  Correspondent  guidelines  were  adopted  on  14 
the  OLAF 
January  2021.  They  define 
Correspondent  in  Commission  DGs  and  executive  agencies 
more clearly and in a uniform way. 

role  of 

the 

An OLAF proposal to create a link to a ‘Fraud report’ page on 
the website of all DGs and services has been discussed within 
the  FPDNet 
shared 
management and direct management. 

sub-groups  on  external  actions, 

Status 

Done 

Due date 

2019-2020 

Done 
and 
continuous 

and 

2019 
then 
continuous 

14  Commission Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 883/2013 concerning investigations conducted by the European 

Anti-Fraud Office (OLAF) as regards cooperation with the European Public Prosecutor's Office and the effectiveness of OLAF investigations of 23 May 2018, COM (2018) 338. 

31 

 
 
 
 
                                                           
b) 

c) 

d) 

o 

o 

improving  OLAF’s  communication  on  its 
dismissal of cases reported by the services 

reinforcing  cooperation  between  the  shared 
management  DGs  and  OLAF  to  obtain 
investigative 
information  of  potential 
interest from Member State authorities; and 

o  encouraging the EEAS and other EU bodies 
better 

initiatives 

such 

for 

to 
join 
cooperation. 

OLAF  has  improved  the  level  of  explanation  given  to  EU 
institutions, bodies, offices and agencies for the dismissals of 
cases brought by them. 

Done 
and 
continuous 

The  OLAF  Correspondents  guidelines  clarify  the  reporting, 
the  cooperation  and  the  exchange  of  information  during  the 
selection process. 

Done 
and 
continuous 

EEAS is invited to the FPDNet meetings and is a member of 
the FPDNet sub-group on external actions. The EIB has been 
invited to FPDNet meetings on an ad hoc basis as observers. 

Done 

57 

Following  thorough  legal  analysis,  develop  criteria 
for  the  scope  of  possible  investigations  in  cases  of 
budget support. 

OLAF / SJ 

Support: 

A  legal  analysis  including  criteria  has  been  done  by  OLAF 
together with the Legal Service.  

Done 

2020 

INTPA, 
NEAR, ECFIN  

C. Corrective Measures and Sanctions; Follow-up of OLAF Recommendations 

Nr  Action 

Lead Service 

Action taken (state-of-play) 

58 

Evaluate  and  optimise 
including 
cooperation between OLAF and other actors, in the 
light of the recent IAS audit. 

the  EDES, 

BUDG / OLAF 

Integrate  information  about  how  to  consult  and 
operate the EDES into corporate anti-fraud training. 

59  Apply  OLAF’s  "Instructions  on  drafting  Financial 
Recommendations  and  related  sections  of  the  Final 
Report"  and  "Guidelines  on  Financial  Monitoring" 
and provide training if needed. 

OLAF 

Support: BUDG 

Following  an  agreement  between  OLAF  and  DG  BUDG  on 
the  use  of  OLAF  reports  within  EDES  procedures,  the 
corporate  guidelines  and  the  training  activities  have  been 
updated.  Information  on  how  to  consult  and  operate  the 
EDES is given in the dedicated training sessions. 

The  Commission  adopted  a  proposal  for  a 
targeted 
amendment  of  the  Financial  Regulation on  16  May  2022.  In 
this  context,  the  Commission  proposed  to  enhance  the 
protection  of  Union’s  financial  interests  by  extending  EDES 
to  shared  management  and  the  RRF  (proportionate  and 
targeted extension under limited conditions). 

Revised corporate guidance on recoveries related to suspected 
fraud  and  other  irregularities  was  issued  by  DG  BUDG,  in 
close  cooperation  with  OLAF,  in  February  2022.  There  is 
continuous cooperation  between OLAF  and the Commission 

Status 

Done 

Due Date 

2019 

Done 
and 
continuous 

Continuous 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60  Closely  monitor  Member  States’  follow-up  of 

OLAF’s financial recommendations. 

Coordination for the purposes of systemic follow-up 
in  the  FPDNet  and  by  the  Corporate  Management 
Board. 

REGIO,  EMPL, 
MARE,  AGRI, 
HOME 

OLAF  

61  Closely  monitor  services’  follow-up  of  OLAF’s 
administrative  recommendations,  to  feed  into  the 
general  monitoring  under 
the  Administrative 
Arrangements  between  the  Commission  and  OLAF 
(see Action Point 9). 

OLAF 

services  to  improve  the  follow-up  to  OLAF’s  financial 
recommendations. 

The Commission services monitor OLAF’s recommendations 
and report on them in their annual activity reports. 

and 
Done 
continuous  

Continuous 

In  collaboration  with  the  Commission  services,  OLAF  has 
conducted  a  comprehensive  stocktaking  exercise  on  the 
follow-up  to  financial  recommendations  issued  since  2012, 
which 
is  complemented  by  regular  annual  monitoring 
exercises.  Findings,  including  the  follow-up  to  financial 
recommendations  by  Member  States,  have  been  discussed 
with  the  Commission  departments  concerned.  Both  OLAF 
and  these  Commission  departments  continuously  strive  to 
optimise their practices of issuing and implementing financial 
recommendations. 

In  line  with  Action  9,  OLAF’s  monitoring  activities  are 
discussed  in  the  FPDNet  as  appropriate,  and  OLAF’s 
Director-General regularly presents the state of play in the 
Corporate Management Board. 

In  July  2021,  OLAF  launched  a  stocktaking  exercise  on  the 
follow-up of administrative recommendations issued between 
2016  and  2020,  including  recommendations  related  to  the 
Early  Detection  and  Exclusion  System  and  to  financial 
penalties  based  on  the  Financial  Regulation  even  when 
combined with a financial recommendation. 

Results  are  being  finalised  for  presentation  to  the  Corporate 
Management Board. 

for 

future  periodic  monitoring  of 
In  preparation 
administrative  recommendations,  Drafting  Instructions  and 
Monitoring  Guidelines  for  administrative  recommendations 
were adopted in January 2022.  

Done 
and 
continuous  

Continuous 

D. Reporting on the Implementation of the CAFS 

Nr  Action 

Lead Service 

Action taken (state-of-play) 

Status 

Due Date 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
62 

a) 

Refine:  

o 

reporting 
strategies through the annual activity reports;  

service-level 

about 

anti-fraud 

/  BUDG/ 

SG 
OLAF 

Following  OLAF’s  discussions  with 
the  Commission’s 
central  services,  the  templates  for  the  new  strategic  and 
management  plans  now  contain  a  separate  section  on  ‘fraud 
risk  management’  to  allow  for  more  specific  reporting  on 
anti-fraud measures. 

Done 

2019-2020 

b) 

o 

the  contents  of  the  Annual  Management  and 
Performance  Report  with  regard  to  anti-fraud 
action;  

c) 

o 

the role of other reporting channels; 

while  keeping  in  mind  that  documents  intended  for 
the institutions and the general public need to be of a 
reasonable length and easy to read. 

63 

In close cooperation with the Commission’s internal 
control and ethics functions, develop or refine result 
and  impact  indicators  for  the  CAFS  objectives, 
including  measuring  anti-fraud  awareness  among 
staff. Provide advice on the indicators to be used for 
service-level anti-fraud strategies. 

OLAF 

Support: SG/ 

BUDG/ 

HR/JRC 

OLAF  contributes  to  the  AMPR  with  a dedicated section  on 
the fight against fraud and on anti-fraud strategies. 

Done 

The  Commission  reports  in  its  Annual  Report  on  the 
Protection  of  the  Union’s  Financial  Interests  and  the  Fight 
against  Fraud  (PIF  Report)  on  the  progress  of  the  CAFS 
implementation. 

An  FPDNet  sub-group  on  CAFS  indicators  was  created  in 
November 2019 and met in February 2020. Indicators for the 
CAFS  objectives  have  been  developed  and  shared  with  the 
FPDNet. 

OLAF provides advice to Commission services on anti-fraud 
indicators in the context of the SPP cycle. 

Done 

Done 

Preliminary 
result 
indicators 
for  priority 
objectives 
by 2020 

34