COMMISSION STAFF WORKING DOCUMENT Measures adopted by the Member States to protect the EU's financial interests in 2021 Implementation of Art. 325 TFEU 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 budget, EU strategy, activity report, coronavirus disease, epidemic, fight against crime, financial control, fraud, fraud against the EU

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.9.2022  SWD(2022) 304 final  COMMISSION STAFF WORKING DOCUMENT Measures adopted by the Member States to protect the EU's financial interests in 2021 Implementation of Art. 325  TFEU 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) 305 final} - {SWD(2022) 306 final} - {SWD(2022) 307 final}  
 
 
TABLE OF CONTENTS 

1.  Protecting the EU’s financial interests ........................................................................ 7 

2.  Overview of the measures taken by Member States in 2021 ...................................... 7 

2.1.  Anti-fraud  measures  adopted  by  the  Member  States  and  the  anti-fraud 

cycle................................................................................................................... 9 

2.2.  Training  organised  by  Member  States  on  the  Irregularity  Management 

System (IMS) .................................................................................................. 14 

3.  Anti-Fraud Measures by Member States ................................................................... 16 

3.1.  Belgium ........................................................................................................... 16 

3.1.1.  Horizontal:  Transposition  of  Directive  (EU)  2017/1371  (‘PIF 

Directive’) into Belgian law .............................................................. 16 

3.1.2.  Expenditure  –  Cohesion  policy:  Cross-cutting  measure  to  clarify 

or consolidate existing rules .............................................................. 16 

3.1.3.  Expenditure  –  Agriculture:  Participation  in  the  SmartPro  CAP 
project  and  further  development  of  anti-fraud  policy  within  the 
Department of Agricultures and Fisheries ......................................... 17 

3.2.  Bulgaria ........................................................................................................... 17 

3.2.1.  Sectoral – all areas of Expenditure: Round table on increasing the 
effectiveness  of  criminal  and  administrative  proceedings 
concerning  offences  and  infringements  affecting  resources  from 
the European Structural and Investment Funds (ESIF) ..................... 17 

3.2.2.  Expenditure  –  Centralised  direct  management  and  Fund  for  the 

most deprived: To enhance existing rules ......................................... 18 

3.2.3.  Horizontal:  Organisation  and  coordination  of  Bulgaria’s 

participation in the EU Recovery and Resilience Facility ................ 18 

3.3.  Czechia ............................................................................................................ 19 

3.3.1.  Revenue  –  Customs:  Change  of  tariff  classification  at  release  for 

free circulation ................................................................................... 19 

3.3.2.  Horizontal  –  Cross-cutting  measure  and  to  enhance  existing 

measure .............................................................................................. 19 

3.3.3.  Horizontal  –  Transfer  of  criminal  cases  for  supervision  to  the 

European Public Prosecutor’s Office (EPPO) ................................... 20 

3.4.  Denmark .......................................................................................................... 20 

3.4.1.  Update on the paying agency’s fraud prevention .............................. 20 

3.4.2.  Follow-up to criticism from the National Audit Office .................... 20 

3.4.3.  Detection of double funding .............................................................. 21 

3.5.  Germany .......................................................................................................... 21 

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3.5.1.  Expenditure  –  Agriculture  and  Fisheries:  Uniform  strategy  for 

dealing with conflicts of interest ....................................................... 21 

3.5.2.  Cohesion  policy:    Updating  management  and  control  structures 

put in place by the Saarland ERDF managing authority ................... 22 

3.5.3.  Revenue  –  Tax  Fraud:  Amendments  and  new  provisions  of  the 

Turnover Tax Act to be in line with developments in EU law .......... 22 

3.6.  Estonia ............................................................................................................. 22 

3.6.1.  Expenditure  – Cohesion  policy:  To enforce the rules in  line with 

developments in EU law .................................................................... 22 

3.6.2.  Horizontal – Combating corruption in public sector and preventing 
conflicts  of  interest  involving  Ministers,  their  Advisers  and  for 
Officials in Liaison with Lobbyists ................................................... 23 

3.6.3.  Revenue – Customs and Tax fraud: New working group to tackle 

more efficiently alcohol and tobacco excise fraud ............................ 23 

3.7. 

Ireland .............................................................................................................. 24 

3.7.1.  Horizontal: To clarify or consolidate existing rules .......................... 24 

3.7.2.  Revenue  –  Customs:  808  additional  full-time  equivalent  staff  to 
safeguard  the  EU  border  and  protect  the  Customs  Union  from 
illegal trade ........................................................................................ 24 

3.8.  Greece .............................................................................................................. 25 

3.8.1.  Expenditure  –  Cohesion  policy:  establishment  of  a  Management 
and  Control  System  for  actions  and  projects  under  the  Recovery 
and Resilience Fund (RRF) ............................................................... 25 

3.8.2.  Horizontal: To clarify or consolidate existing rules .......................... 25 

3.8.3.  Horizontal:  Prevention  and  suppression  of  money  laundering  and 

terrorist financing .............................................................................. 26 

3.9.  Spain ................................................................................................................ 26 

3.9.1.  Horizontal: A National Anti-Fraud Strategy for Spain ..................... 26 

3.9.2.  Horizontal:  Enhanced  Cooperation  with  the  European  Public 

Prosecutor’s Office (‘EPPO’) ............................................................ 27 

3.9.3.  Expenditure – Centralised direct management: Establishment of a 
Recovery,  Transformation  and  Resilience  Plan  Management 
System ............................................................................................... 27 

3.10.  France 

 ........................................................................................................... 28 

3.10.1.  Sectoral  –  Revenue  (Customs  and  Tax  fraud)  and  Expenditure  – 
Agriculture,  Fisheries,  Cohesion  Policy  and  Centralised  direct 
management: A national anti-fraud strategy devoted to combating 
fraud affecting the financial interests of the EU ................................ 28 

3.10.2.  Revenue (Customs and Tax fraud) and Expenditure – Agriculture, 
Fisheries,  Cohesion  Policy  and  Centralised  direct  management: 
Updated guidelines on the anti-corruption policy framework ........... 29 

2 

 
 
3.11.  Croatia   ........................................................................................................... 29 

3.11.1.  Anti-Corruption Strategy for 2021-2030 ........................................... 29 

3.11.2.  Improvement of the anti-fraud legal framework and of the Paying 

Agency’s procedures ......................................................................... 30 

3.11.3.  Implementation of the project  ‘Acquiring of equipment  and tools 
for e-Forensics and training of officials’, funded by the European 
Social Fund ........................................................................................ 31 

3.12.  Italy 

 ........................................................................................................... 31 

3.12.1.  Horizontal: To enforce the rules in line with developments in EU 

law with regard to money laundering ................................................ 31 

3.12.2.  Horizontal: To enforce the rules in line with developments in EU 
law  with  regard  to  cooperation  on  the  establishment  of  the 
European Public Prosecutor’s Office (EPPO) ................................... 32 

3.12.3.  Sectoral:  Expenditure  –  Agriculture,  Fisheries  and  Cohesion 
policy:  Memorandum  of  Understanding  on  prevention, 
identification  and  prosecution  of  unlawful  activities  under 
programmes  covered  by  the  National  Recovery  and  Resilience 
Plan (NRRP) ...................................................................................... 32 

3.13.  Cyprus   ........................................................................................................... 33 

3.13.1.  Sectoral:  Expenditure  –  Agriculture:  Policies  on  Anti-Fraud, 

Conflict of Interest, Whistle-blower protection ................................ 33 

3.13.2.  Sectoral: Expenditure – Agriculture: Training and staff awareness .. 33 

3.13.3.  Sectoral:  Revenue  –  Customs:  Combating  the  smuggling  of  duty 

free goods .......................................................................................... 33 

3.14.  Latvia 

 ........................................................................................................... 34 

3.14.1.  Horizontal: To enforce the rules in line with developments in EU 

law 

 ........................................................................................... 34 

3.14.2.  Sectoral: Expenditure – Agriculture: New electronic tool to ensure 
transparency and to simplify the process of purchase of machinery 
and equipment by farmers ................................................................. 34 

3.14.3.  Sectoral:  Revenue  –  Tax  fraud:  Improved  detection  of  criminal 

offences in the area of tax fraud ........................................................ 35 

3.15.  Lithuania .......................................................................................................... 35 

3.15.1.  Horizontal:  Establishment  of  the  Centre  of  Excellence  in  the 

Prevention of Money Laundering (AML Centre) ............................. 35 

3.15.2.  Horizontal: To clarify or consolidate existing rules and to enforce 

the rules in line with developments in EU law .................................. 36 

3.15.3.  Horizontal:  Adapting  to  changing  circumstances  and  ensuring  a 

smooth process for the administration of EU funds .......................... 36 

3.16.  Luxembourg .................................................................................................... 36 

3.16.1.  Horizontal: Increase of human resources at AFCOS Luxembourg ... 36 
3 

 
 
3.17.  Hungary ........................................................................................................... 37 

3.17.1.  Horizontal:  Various  anti-corruption  activities  by  the  Public 

Procurement Authority ...................................................................... 37 

3.17.2.  Sectoral: Revenue – Customs: Measures in the field of customs by 

the National Tax and Customs Administration ................................. 37 

3.17.3.  Sectoral  –  Expenditure:  Agriculture,  Fisheries  and  Cohesion 
policy: Compilation of a case repository for cases of irregularities 
classified as ‘suspected fraud’ during the 2014–2020 ....................... 38 

3.18.  Malta 

 ........................................................................................................... 38 

3.18.1.  Horizontal:  Update  on  the  National  Anti-Fraud  and  Corruption 

Strategy (NAFCS) ............................................................................. 38 

3.19.  Netherlands ...................................................................................................... 39 

3.19.1.  Sectoral: Expenditure – Cohesion policy: Fraud Risk Assessment .. 39 

3.19.2.  Sectoral: Expenditure – Cohesion policy: Updating of checklists .... 39 

3.19.3.  Sectoral:  Revenue  –  Customs:  New  e-commerce  team  which 

assesses and processes all e-commerce declarations ......................... 40 

3.20.  Austria   ........................................................................................................... 40 

3.20.1.  Horizontal: Detection and deactivation of dummy companies ......... 40 

3.20.2.  Sectoral: Expenditure – Cohesion policy: Monitoring and ensuring 
the  proper  use  of  funds  and  the  notification  of  identified 
irregularities ....................................................................................... 40 

3.20.3.  Sectoral: Revenue – Fraud: Combating benefit fraud ....................... 41 

3.21.  Poland   ........................................................................................................... 41 

3.21.1.  Sectoral:  Expenditure  –  Cohesion  policy:  IT  application  that 

collects data about specific entities or individuals in one place ........ 41 

3.21.2.  Sectoral: Revenue – Tax Fraud: Introduction of warning letters by 

the Head of the National Revenue Administration ........................... 42 

3.21.3.  Sectoral:  Expenditure  –  Agriculture:  Recovery  procedure  under 

the Common Agricultural Policy ...................................................... 42 

3.22.  Portugal  ........................................................................................................... 42 

3.22.1.  Horizontal:  Implementation  of  the  National  Anti-Corruption 

Strategy 2020-2024 ........................................................................... 42 

3.22.2.  Horizontal:  Special  public  procurement  measures  to  improve 

transparency in pre-contractual procedures ....................................... 43 

3.22.3.  Horizontal:  Joining  the  early  detection  and  exclusion  system 

(EDES) 

 ........................................................................................... 43 

3.23.  Romania........................................................................................................... 43 

3.23.1.  Horizontal:  Institutional  framework  for  collaboration  with  the 

EPPO 

 ........................................................................................... 43 

4 

 
 
3.23.2.  Horizontal:  Establishment  of  measures  to  facilitate  the  use  of 
financial  information  and  financial  analysis  for  prevention, 
detection, investigation or prosecution of certain criminal offences . 44 

3.23.3.  Horizontal: Approval of National Anti-Corruption Strategy 2021-

2025 

 ........................................................................................... 44 

3.24.  Slovenia ........................................................................................................... 45 

3.24.1.  Sectoral:  Revenue  –  Customs  and  Tax  fraud:  Enhanced 

supervision on TOR and VAT losses ................................................ 45 

3.24.2.  Addition of red flags to the ARSKTRP’s Manual ............................ 45 

3.24.3.  Adoption  of  the  Rules  on  the  Register  of  providers  of  exchange 

services 

 ........................................................................................... 46 

3.25.  Slovakia ........................................................................................................... 46 

3.25.1.  Sectoral: Expenditure – Fisheries and Cohesion Policy: Protecting 

ESI funds through an amendment of the Act no. 292/2014 Coll. ..... 46 

3.25.2.  Sectoral: Revenue – Customs and Tax fraud: Launch of a software 

tool to improve the process and outputs of customs analysis ............ 47 

3.25.3.  Sectoral:  Expenditure  –  Agriculture:  Implementing  an  IT  system 

into Rural Development Program (RDP) projects ............................ 47 

3.26.  Finland   ........................................................................................................... 48 

3.26.1.  Horizontal: A national anti-corruption strategy ................................ 48 

3.27.  Sweden  ........................................................................................................... 48 

3.27.1.  Horizontal:  Annual  work  of  the  Swedish  Council  for  the 
Protection  of  the  European  Union’s  Financial  Interests  (SEFI 
council)   ........................................................................................... 48 

3.27.2.  Sectoral:  Revenue  –  Customs  and  Expenditure:  Agriculture  and 
Fisheries:  New  working  group  on  fraud  issues  in  the  Swedish 
Board  of  Agriculture  &  mandatory  training  for  employees 
working with distribution of EU funds .............................................. 48 

3.27.3.  Horizontal:  Inquiry  by  Swedish  Government  to  investigate  the 

efficiency of the management of EU related funds in Sweden ......... 49 

4.  Additional measures reported by the Member States ................................................ 50 

4.1.  Germany:  Performance  of  a  fraud  risk  assessment  and  support  for  the 

operational work of the EPPO ......................................................................... 50 

4.2.  Belgium ........................................................................................................... 50 

4.2.1.  Efforts regarding ERDF and ESF ...................................................... 50 

4.2.2.  Measures reported by the Department of Agriculture and Fisheries 

as well as the Federal Public Finance Service ................................... 51 

4.3.  Estonia: Public Procurement register possibilities and training programmes . 51 

4.4.  Spain:  Procedures  by 

the  Management  Authorities  of 

the  Shared 

Management Funds in the area of fraud prevention and conflict of interest ... 51 
5 

 
 
4.5.  Latvia ............................................................................................................... 52 

4.5.1.  Cooperation  with  the  European  Public  Prosecutor’s  Office  and 

Educational activities ........................................................................ 52 

4.5.2.  Other measures .................................................................................. 53 

4.6.  Hungary ........................................................................................................... 53 

4.6.1.  Enhanced  the  cooperation  within  the  National  Tax  and  Customs 
Administration’s  Criminal  Affairs  Directorate  and  updated 
training course ................................................................................... 53 

4.7.  Romania:  Approval  of  the  National  Strategy  against  Organised  Crime 
2021-2024  and  the  National  Strategy  for  the  recovery  for  criminal  assets 
for the period 2021-2025 ................................................................................. 53 

5.  Case Studies reported by Member States .................................................................. 55 

5.1.  Belgium: Cohesion policy, European Regional Development Fund: Failure 

to publicly advertise a procurement ................................................................ 55 

5.2.  Bulgaria:  ESIF  funds  –  misappropriation  of  EU  funds  in  connection  with 

improving the energy efficiency of a micro-enterprise ................................... 55 

5.3.  Estonia ............................................................................................................. 56 

5.3.1.  Combined cargo cigarette smuggling ................................................ 56 

5.3.2. 

Illegal cigarette trading as family income ......................................... 56 

5.4. 

Ireland: Irish Custom's operational response to the UK's exit from the EU ... 56 

5.5.  Greece:  Participation  of  the  Financial  Police  Directorate  in  Operation 
OPSON  organised  by  EUROPOL  and  INTERPOL,  with  the  support  of 
OLAF............................................................................................................... 57 

5.6.  Croatia:  Customs  case:  Detection  of  cigarette  smuggling  at  the  external 

border of the EU .............................................................................................. 57 

5.7. 

Italy .................................................................................................................. 58 

5.7.1.  Guardia  di  Finanza  -  Customs  and  VAT  fraud  on  imports  of 

healthcare equipment ......................................................................... 58 

5.7.2.  Guardia di Finanza - Cohesion, EAFRD: corruption, extortion and 

fraud relating to public funds ............................................................ 58 

5.7.3.  Customs and Monopolies Agency (ADM) - EREBO Project ........... 58 

5.8.  Latvia: Prohibited agreement (cartel) on the conditions for participation in 
public and private procurements in Latvia between ten largest construction 
companies ........................................................................................................ 58 

5.9.  Lithuania: One man's trash is another man's business ..................................... 59 

5.10.  Romania:  EAGF  funds:  Fraud  of  EUR  850 000  -  European  agricultural 

funds allocated to tomato production .............................................................. 60 

6 

 
 
 
 
 
1.  PROTECTING THE EU’S FINANCIAL INTERESTS 

The protection of the EU’s financial interests is a shared responsibility between the European 
institutions  and  the  Member  States,  which  contribute  to  the  largest  part  of  the  EU  budget, 
collect  the  Traditional  Own  Resources  on  behalf  of  the  EU,  but  also  manage  directly  about 
two thirds of its expenditure. 

Under  article  325,  paragraph  2,  of  the  Treaty  on  the  Functioning  of  the  European  Union 
(TFEU) “Member States shall take the same measures to counter fraud affecting the financial 
interests of the Union as they take to counter fraud affecting their own financial interests”.  

According to  paragraph  5 of the same Treaty  article, the  “Commission,  in cooperation with 
Member States, shall each year submit to the European Parliament and to the Council a report 
on the measures taken for the implementation of this Article”.  

To compile this document and gather the necessary information to prepare the aforementioned 
report, the Commission  has requested Member States to  report up to  three measures, which 
they  considered  as  the  most important  for the protection of the EU financial interests.  They 
were  reported  through  an  online  questionnaire  (‘the  PIF  Questionnaire’,  madeavailable  in 
every EU language) using the web platform EU Survey. Their replies are compiled in section 
3 of this document.  

Member States were also given the possibility to briefly describe additional measures, if they 
deemed necessary. Seven Member States did so. Such contributions are compiled in section 4 
of this document. 

Ten  Member  States  also  reported  case  studies  in  various  sector  of  the  protection  of  the  EU 
financial interests. They are collected in chapter 5. 

2.  OVERVIEW OF THE MEASURES TAKEN BY MEMBER STATES IN 2021 

Member States reported 73 measures in 2021 on the protection of the EU’s financial interests 
and  the  fight  against  fraud.  As  Member  States  were  invited  to  report  a  maximum  of  three 
(most  important)  anti-fraud  measures,  this  document  therefore  offers  a  good,  albeit  non-
exhaustive,  overview  of  trends  and  priorities  in  the  anti-fraud  measures  implemented  by 
Member  States.  The  number  of  measures  effectively  reported  would  be  higher,  if  one 
considers  that  Member  States  may  report  ‘single’  or  ‘package’  measures.  The  latter  usually 
encompasses  a  number  of  instruments  adopted  at  the  same  time  and  to  pursue  the  same 
objective.  On  the  total  number  of  reported  measures,  31  (42%)  consisted  of  ‘package’ 
measures. 

As a reflection of 2021’s key priorities, eight Member States1 reported measures with regard 
to the European Public Prosecutor’s Office (EPPO), either in relation to the implementation of 
the Council Regulation (EU) 2017/19392 or measures that will further strengthen and enhance 
future cooperation. 

1  Belgium, Czechia, Germany, Spain, France, Italy, Latvia and Romania. 

2  Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 

establishment of the European Public Prosecutor’s Office. 

7 

 
 
                                                 
Another  recurring  theme  was  the  Recovery  and  Resilience  Facility  (RRF).  Member  States 
reported  implementations  of  recovery  and  resilience  plans  and  measures,  which  ensure 
monitoring and controlling of the related funding. 

Furthermore,  six  Member  States3  reported  the  (further)  transposition  of,  in  particular,  three 
directives  Directive  (EU)  2017/1371  (‘PIF  Directive’),  Directive  (EU)  2018/1673  and 
Directive (EU) 2015/849. 

As showed in  figure 1,  Member States  reported  more measures, which  were newly  adopted 
than updated or amended measures. Some measures were both updated and new. 

Figure 1 - New Measures vs Updated Measures reported 

Reported  measures  are  categorised  under  four  different  groups:  legislative,  administrative, 
organisational and operational. 

A legislative measure is an act adopted by a legislative body or having legal force. 

An  administrative  measure  is  a  legal  act  adopted  by  an  administrative  body  to  implement 
actions provided for by legislative acts. 

An organisational measure is a decision or any other non-legislative act taken to change the 
organisational  setting  of  an  administration  or  body  whose  tasks  and  activities  related  to  the 
protection of the EU’s financial interests. 

An operational measure is any action undertaken by an administration or body whose tasks 
and  activities  related  to  the  protection  of  the  EU’s  financial  interests,  which  have  a  direct 
impact on its operations. 

In 2021, Member States the distribution of the reported measures by category is  more even 
than  in  previous  years.  Measures  focused  on  an  operational  level,  followed  closely  by 

3  Belgium, Estonia, Ireland, Greece, Italy and Lithuania. 

8 

 
 
 
                                                 
legislative measures (36%), were the most reported and were present in 40% of the reported 
initiatives4, as showed in Figure 2 with a comparison to the data from 2020. 

Figure 2 - Distribution of reported measures by type 

2.1.  Anti-fraud measures adopted by the Member States and the anti-fraud cycle 

The  fight  against  fraud  can  be  truly  effective  if  it  follows  a  holistic  and  comprehensive 
approach and covers all stages of the anti-fraud cycle, as the protection of the EU’s financial 
interests is ensured by a plurality of players and a multiplicity of processes and stages, which 
are deeply interconnected and influence one another. 

This approach towards fighting fraud is exemplified in Figure 3. 

4  When reporting a package of measures, more than one category can be included in that package. 

9 

 
 
 
                                                 
Figure 3 – The anti-fraud cycle 

In the PIF Questionnaire, Member States were asked to indicate which steps of the anti-fraud 
cycle are targeted by the reported measures. 

Member States measures covered the entire anti-fraud cycle, although, similarly to  previous 
years,  they  focussed  in  particular  on  fraud  prevention  (around  84%)  and  detection  (around 
70%).  Investigation  and  in  particular  reparation  (sanctions  and  recovery)  were  targeted  in 
fewer measures as showed in Figure 4. Although in comparison to last years, the number of 
measures, which covered investigations or sanctions and recovery, has been increasing. 

Figure 4 - Reported measures and steps of the anti-fraud cycle 

10 

 
 
 
 
Several of these measures are a direct consequence of rules and guidelines developed at EU 
level for the setting up of the management and control systems (MCS). The steps related to 
“investigation and prosecution” and “recovery and sanctions”, which fall into domains closely 
linked to the States’ sovereign sphere (law enforcement and justice), are usually less touched 
by  these  initiatives.  However,  in  comparison  to  previous  years,  measures  related  to 
“investigation  and  prosecution”  and  “recovery  and  sanctions”  have  increased  (direct 
comparison  to  the  data  from  2020).  One  cause  for  this  development  may  be  the  further 
implementation of enhanced cooperation with EPPO. 

When reporting the adopted measures, Member States also indicate specific areas, which they 
address. A measure can address more than one area at the same time. 

Figure 5 shows the areas addressed by the reported measures. 

Figure 5 - Measures by area addressed 

Similarly  to  previous  years,  most  reported  measures  concern  “Shared  management  and 
control  of EU funds”. Many measures reported in  2021 also  covered “Public Procurement”. 
Additionally,  particular  attention  was  given  to  “Antifraud  or  anticorruption  strategies”  and 
“Financial crime”. 

Figure 6 further breaks down the same information by Member State and by area concerned. 

11 

 
 
 
 
 
Figure 6 - Number of measures reported by area and by Member State 

Figure  7  shows  the  share  of  the  reported  measures,  which  cover  specific  sectors  of  the  EU 
budget, and the share that, on the other hand, have a cross-cutting nature. 

Figure 7 - Sectoral measures vs cross-cutting measures 

12 

 
 
 
 
Figure 8 breaks down this information by Member State. 

Figure 8 - Cross-cutting vs sectoral measures by Member State 

Among  the  sectoral  measures  reported,  29  relate  to  various  expenditure  sectors  and  16  to 
revenue.5 Figure 9 shows that the majority of adopted measures in expenditure sectors largely 
relates to agriculture, followed by cohesion and fisheries. 

5 Bearing in mind that some measures relate to various expenditure sectors and to revenue.  

13 

 
 
 
                                                 
Figure 9 - Sectoral measures: expenditure 

2.2.  Training  organised  by  Member  States  on  the  Irregularity  Management 

System (IMS) 

The  Irregularity  Management  System  (IMS)  is  an  IT  system  developed  and  maintained  by 
OLAF  on  behalf  of  the  Commission,  to  facilitate  the  reporting  by  Member  States  of 
irregularities in the area of shared management, in line with sectoral legislation. 

Such  reporting  is  one  of  the  main  information  sources  for  the  Commission  to  prepare  the 
annual report on the protection of the EU’s financial interests and the fight against fraud. 

As of 2016, OLAF implemented a ‘train the trainer’ policy. The PIF Questionnaire requests 
Member States to indicate how many training sessions have been organised in the reporting 
year, and how many people were trained in the use of the system. 

As  shown  in  Figure  10,  ten  Member  States  reported  having  organised  198  IMS  training 
sessions in their countries and indicated 276 participants. 

Figure 10 - IMS training in 2021 

Member State 

Number of training sessions 

Number of trainees 

Bulgaria 

Germany 

Croatia 

8 

175 

6 

10 

175 

16 

14 

 
 
 
Italy 

Hungary 

Poland 

Sweden 

TOTAL 

5 

1 

2 

1 

198 

12 

12 

48 

3 

276 

15 

 
 
 
 
 
3.  ANTI-FRAUD MEASURES BY MEMBER STATES 

3.1.  Belgium 

3.1.1.  Horizontal: Transposition of Directive (EU) 2017/1371 (‘PIF Directive’) 

into Belgian law 

In 2021, Belgium reported the Act of 17 February 2021 which lays down various provisions 
in  the  area  of  justice:  first,  Chapter  4,  which  transposes  Directive  (EU)  2017/1371  (‘PIF 
Directive’) into national law and, secondly, Section 2 of Chapter 2, which adds Chapter IVter 
‘The European Prosecutor and the European Delegated Prosecutors’ to the Code of Criminal 
Procedure.  

This measure ensures that the penalties for corruption are in line with the PIF Directive and 
that  the  powers  and  procedures  of  the  European  Prosecutor  and  the  European  Delegated 
Prosecutors are laid down in  the Code of Criminal  Procedure. The  anti-corruption measure, 
which ensures that the penalties are consistent with those applied in  the rest  of the EU, has 
been applied in the public sector of public procurement. 

The  Act  of  17  February  2021  also  added  Chapter  XXIV  bis  ‘European  Public  Prosecutor’s 
Office’ to the General Act on Customs and Excise Duties of 18 July 1977.  

This amendment to the national customs legislation ensures effective cooperation between the 
customs  authorities  and  the  European  Public  Prosecutor’s  Office  in  the  fight  against  fraud 
involving traditional own resources of the EU budget. 

3.1.2.  Expenditure  –  Cohesion  policy:  Cross-cutting  measure  to  clarify  or 

consolidate existing rules 

Belgium  reported  that  in  2021,  implementing  the  Recovery  and  Resilience  Facility  (RRF) 
involved  the  selection  of  20  investment  or  reform  projects  and  establishing  a  system  for 
monitoring  the  achievement  of  milestones  and  targets,  in  addition  to  the  absence  of  serious 
irregularities  (such  as  fraud,  corruption,  conflicts  of  interest  and  double  funding).  The 
managing authority for the Brussels-Capital Region ERDF Programme has set up a targeted 
risk  management  exercise  for  the  implementation  of  the  RRF  and  a  system  for  detecting, 
preventing and penalising serious irregularities among the projects selected. 

The RRF is a new fund involving large sums of money that risk being targeted by fraudsters, 
which would have a significant impact on the EU budget and its reputation. A handbook on 
the  implementation  of  the  RRF  has  been  drafted  and  distributed.  This  document  sets  out  to 
project  holders  their  duties  as  beneficiaries  of  the  fund  and  details  the  arrangements  for 
implementing  the  RRF  Regulation  (Regulation  (EU)  2021/241  of  12  February  2021 
establishing a Recovery and Resilience Facility). 

16 

 
 
 
3.1.3.  Expenditure  –  Agriculture:  Participation  in  the  SmartPro  CAP  project 
and  further  development  of  anti-fraud  policy  within  the  Department  of 
Agricultures and Fisheries 

The  Flemish  paying  agency  for  agricultural  funds  is  one  of  the  project  partners  of  the 
SmartPro  CAP  project  running  between  1  January  2021  and  31  March  2022  and  is  funded 
through Hercule III. The project focuses on the sound management of financial resources and 
the  fight  against  fraud  using  data  and  new  technologies  (such  as  Arachne,  data-driven  risk 
analyses, etc.) within the non-IACS rural measures.  

Participating in the SmartPro CAP project does not only provide inspiration and input for the 
further development of anti-fraud policy within the Department of Agriculture and Fisheries 
[Departement  Landbouw  en  Visserij],  it  also  creates  opportunities  for  cooperation,  initially 
with other project partners (Estonia, Veneto and Croatia), but  also, by extension, with other 
Member States following the publication of the final project manual in March 2022. 

3.2.  Bulgaria 

3.2.1.  Sectoral  –  all  areas  of  Expenditure:  Round  table  on  increasing  the 
effectiveness  of  criminal  and  administrative  proceedings  concerning 
offences  and  infringements  affecting  resources  from  the  European 
Structural and Investment Funds (ESIF) 

In 2021, Bulgaria reported a round table organised and held by the AFCOS Directorate. The 
event  was  attended  by  43  representatives  of  nine  regional  directorates  of  the  Bulgarian 
Ministry  of  the  Interior,  the  Directorate-General  for  Combating  Organised  Crime  and  the 
Directorate-General  for  the  National  Police,  as  well  as  representatives  of  managing 
authorities, the Supreme Prosecutor’s Office of Cassation, the European Public Prosecutor’s 
Office and the AFCOS Directorate. 

It  allowed staff of specialised bodies to exchange experiences, by presenting and discussing 
the European and national mechanisms for combating irregularities and fraud in the use of EU 
resources, and by sharing good practices for crime detection and investigation. 

17 

 
 
 
 
3.2.2.  Expenditure  –  Centralised  direct  management  and  Fund  for  the  most 

deprived: To enhance existing rules 

In 2021, Bulgaria reported about an update of the methodology for carrying out specific audit 
activities to verify procedures for the selection of contractors by beneficiaries and compliance 
with State aid rules.  

The measure is in line with the Guidance from the European Commission on using the public 
procurement framework in the emergency situation related to the COVID-19 crisis, published 
in OJ C 108, 1.4.2020. Including additional methodological guidance provides auditors with 
more detailed information on the circumstances to look out for when carrying out checks and 
guidelines for detecting irregularities and fraud. 

3.2.3.  Horizontal: Organisation and coordination of Bulgaria’s participation in 

the EU Recovery and Resilience Facility 

In  2021,  Bulgaria  reported  the  Council  of  Ministers  Decision  No  568/2021  on  the 
organisation and coordination of Bulgaria’s participation in the EU Recovery and Resilience 
Facility (RRF). It included the designation of the authorities and bodies responsible and of the 
central coordination unit for the facility at national level. A list of their main responsibilities 
and functions is included too.  

The RRF will support the actions taken by Member States to address the economic and social 
consequences  of  the  COVID-19  pandemic,  as  well  as  their  attempts  to  build  more  resilient 
public  systems  and  national  economies.  The  decision  designates  the  authorities  and  bodies 
responsible  for  matters  related  to  Bulgaria’s  participation  in  the  RRF,  and  sets  out  their 
powers. 

18 

 
 
 
 
3.3.  Czechia 

3.3.1.  Revenue  –  Customs:  Change  of  tariff  classification  at  release  for  free 

circulation 

In  2021,  Czechia  changed  the  tariff  classification  at  the  release  for  free  circulation.  They 
created  a  report  in  the  AVR  system,  a  report  on  customs  data.  Additionally,  a  new  risk 
identification tool to perform post-clearance checks war created. 

3.3.2.  Horizontal – Cross-cutting measure and to enhance existing measure 

In  2021,  Czechia  prepared  and  implemented  the  Methodological  Instruction  No  10  of  the 
Minister for Regional Development on the ‘Guidance document for managing calls for tender 
and  assessing  and  selecting  projects  for  the  2014-2020  programming  period’,  as  regards 
supplementing  the  procedures  for  verifying  the  eligibility  of  an  applicant  in  light  of  the 
limitations stemming from Act No 159/2006 on Conflicts of Interest. 

The  Methodological  Instruction  No  10  was  prepared  on  the  basis  of  European  Commission 
audit No REGC414CZ0133. In response to the Commission’s recommendation under Finding 
1,  the  Czech  Republic  undertook  as  an  addition  to  the  methodological  framework  an 
obligation  for  managing  authorities  to  comply  with  the  provisions  of  Section  4c  of  Act  No 
159/2006  on  conflicts  of  interest  when  granting  support  from  the  European  Structural  and 
Investment Funds, focusing particularly on trust funds. 

19 

 
 
 
 
 
3.3.3.  Horizontal  – Transfer of criminal  cases  for supervision to  the European 

Public Prosecutor’s Office (EPPO) 

In 2021, Czechia achieved synergies between the Public Prosecutor’s Office and the European 
Public  Prosecutor’s  Office  (EPPO)  by  transferring  criminal  cases  for  supervision.  They 
implemented the necessary action to ensure activities of the EPPO and exercise of its powers 
in  the  Czech  Republic  as  of  June  2021.  The  Public  Prosecutor’s  Office  has  ensured  that 
ongoing criminal cases related to protecting the EU’s financial interests are submitted to the 
EPPO  for  decisions  to  be  taken  on  transferring  them  to  the  relevant  EPPO  Delegated 
Prosecutors. 

3.4.  Denmark 

3.4.1.  Update on the paying agency’s fraud prevention 

In 2021, Denmark, in connection with the Common Agricultural Policy, has brought together 
both  the  paying  agency’s  own  experiences  and  external  analyses.  In  this  context,  internal 
documents and work procedures have been updated and adjusted. It also included revising a 
list of red flags. This process has resulted in an updated overview over the paying agency’s 
fraud prevention and serves as a conclusion. 

3.4.2.  Follow-up to criticism from the National Audit Office 

In spring 2021, the Danish Fisheries Agency [Fiskeristyrelsen] reviewed a number of cases in 
which the legal  adviser to the Danish  Government  [Kammeradvokaten]  had identified signs 
that could  indicate  fraud. Two cases were  reported to  the police,  but  concerned breaches of 
Section 12 of the Act on the Maritime and Fisheries Fund rather than fraud. The measure is a 
follow-up to criticism from the National Audit Office of Denmark. 

20 

 
 
 
 
3.4.3.  Detection of double funding 

In 2021, Denmark reported the integration of data from the compensation schemes with data 
from  the  Agency’s  reporting  data  with  a  view  to  detecting  double  funding  (due  to  COVID 
19). The administrative checks have been expanded with  additional questions to  ensure that 
participating. 

3.5.  Germany 

3.5.1.  Expenditure  –  Agriculture  and  Fisheries:  Uniform  strategy  for  dealing 

with conflicts of interest 

In  2021,  Germany  set  up  a  working  group  on  conflicts  of  interest  to  formulate  a  uniform 
strategy for dealing with conflicts of interest. The working group on conflicts of interest for 
the 14 EAFG/EAFRD paying agencies in Germany was set up, with the involvement of the 
coordinating  body  in  the  Federal  Ministry  of  Food  and  Agriculture  (BMEL),  in  order  to 
formulate  a  uniform  strategy  for  dealing  with  conflicts  of  interest.  Planned  adoption  of  the 
strategy by the managing authorities for the Fisheries Fund. The working group on conflicts 
of  interest  for  paying  agencies  aims  to  formulate  a  common  strategy  for  preventing  and 
detecting  conflicts  of  interest,  which  will  be  implemented  internally  by  the  paying  agencies 
taking into account  Germany’s federal  system.  The strategy is  based among other things on 
the Commission Guidance on the avoidance and management of conflicts of interest under the 
Financial  Regulation.  Adoption  of  the  strategy  by  the  managing  authorities  of  the  Fisheries 
Fund is also planned. 

21 

 
 
 
 
 
3.5.2.  Cohesion  policy:    Updating  management  and  control  structures  put  in 

place by the Saarland ERDF managing authority 

In  2021,  Germany  updated  the  management  and  control  structures  put  in  place  by  the 
Saarland  ERDF  managing  authority  (notification  of  this  measure  as  representative  of  the 
measures  taken  by  the  German  ERDF  managing  authorities)  in  order  to  be  in  line  with  the 
Commission  Guidance  on  the  avoidance  and  management  of  conflicts  of  interest  under  the 
Financial Regulation (2021/C 121/01) of 9 April 2021. 

3.5.3.  Revenue  –  Tax Fraud: Amendments  and new provisions of  the Turnover 

Tax Act to be in line with developments in EU law 

In 2021, Germany reported regarding the Turnover Tact Act (UStG): 

(1) 

(2) 

Amendment of the existing provisions on the liability of electronic interface operators 
with regard to online trading of goods, and of record-keeping obligations (§§ 25e and 
22f  UStG).  The  purpose  of  the  rules  is  to  protect  honest  traders  from  distortions  of 
competition and safeguard VAT revenue. 

Restriction  of  a  VAT  identification  number  issued  where  a  risk  to  VAT  revenue  is 
suspected,  including  in  other  EU  Member  States  (§  27a(1),  first  to  third  sentences, 
UStG). 

3.6.  Estonia 

3.6.1.  Expenditure  –  Cohesion  policy:  To  enforce  the  rules  in  line  with 

developments in EU law 

In 2021, Estonia reported arrangements for implementing the recovery and resilience plan and 
general  conditions  for  granting  support.  The  regulation  adopted  establishes  the  national 
implementation  rules  of  the  recovery  and  resilience  plan  referred  to  in  Article  18  (1)  of 
Regulation (EU) No 2021/241 of the European Parliament and of the Council. It  established 
clear  grounds  for  recovery  upon  the  detection  of  fraud,  a  right  to  recover  if  there  has  been 
fraud,  corruption,  or  a  conflict  of  interest.  The  regulation  also  ensures  the  requirements  of 
Directive 2015/849 on the beneficial owners.  

When  implementing  the  RRF,  the  obligation  to  assess  possible  risks  in  the  project 
implementation in the following categories: double funding, target group risks including fraud 

22 

 
 
 
 
and conflict of interest, state aid, and ensuring competition, must be met. To assess the risks, 
the  Managing  Authority  has  prepared  a  separate  risk  table  with  an  assessment  model.  The 
completed  risk  assessment  together  with  the  mitigating  activities  is  an  important  input  in 
coordinating the conditions for granting support/contract conditions. 

3.6.2.  Horizontal  –  Combating  corruption  in  public  sector  and  preventing 
conflicts of interest involving Ministers, their Advisers and for Officials in 
Liaison with Lobbyists 

The government of Estonia approved on 18 March 2021 the Ministry of Justice's Guidelines 
for the prevention of conflicts of interest for ministers and their advisers and for officials in 
liaison  with  lobbyists.  Ministers  and  their  advisers  are  senior  officials  entrusted  with  the 
formulation of state policy, in the case of ministers, with the functions of the executive branch 
of  the  government,  including  the  appointment  and  supervision  of  persons  for  important 
positions in the state. Therefore, it is crucial that ministers and those who advise them have 
high ethical standards and the ability to avoid situations of corruption and conflicts of interest. 

3.6.3. Revenue  –  Customs  and  Tax  fraud:  New  working  group  to  tackle  more 

efficiently alcohol and tobacco excise fraud 

In 2021, Estonia reported the establishment of a separate working group within the Tax and 
Customs  Board  to  tackle  more  efficiently  alcohol  and  tobacco  excise  fraud.  The  Working 
group  consists  of  staff  from  different  departments  (intelligence,  customs,  investigation,  tax, 
and  tax  audit).  The  aim  of  the  working  group  is  to  coordinate  national  supervision,  tax 
compliance, and investigative activities. 

23 

 
 
 
 
 
3.7. 

Ireland 

3.7.1.  Horizontal: To clarify or consolidate existing rules 

In  2021,  Ireland  reported  the  enactment  of  the  Criminal  Justice  (Theft  and  Fraud  Offences 
(Amendment)  Act  2021  on  18  March  2021,  which  came  into  effect  on  14  April  2021.  This 
Act  gives  full  effect  to  Directive  (EU)  2017/1371  of  the  European  Parliament  and  of  the 
Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of 
criminal  law.  The  offences  of  money  laundering  and  corruption  are  provided  for  in  the 
Criminal  Justice  (Money  Laundering  and  Terrorist  Financing)  Act  2010  &  Criminal  Justice 
(Corruption Offences) Act 2018. 

Directive 2017/1371 replaces the 1995 Convention and 1996 & 1997  Protocols, which were 
given effect in Part 6 of the Criminal Justice (Theft and Fraud Offences) Act 2001. The 2021 
Act updates the 2001 legislation in line with the 2017 Directive. Regarding criminal sanctions 
(g) the Criminal Justice (Theft and Fraud Offences) (Amendment) Act 2021 amended existing 
provisions  and  provided  for  an  expanded  definition  of  fraud  affecting  the  Union's  financial 
interests  and  a  new  offence  of  misappropriation.  The  maximum  penalties  did  not  require 
amendment. 

3.7.2.  Revenue – Customs: 808 additional full-time equivalent staff to safeguard 
the EU border and protect the Customs Union from illegal trade 

In  2021,  Ireland  reported  that  between  2018  and  2021,  808  additional  full-time  equivalent 
staff were sanctioned and assigned to  Brexit-related roles at  Ireland’s frontiers to, inter alia, 
safeguard the EU border and protect the Customs Union from illegal trade while facilitating 
legitimate business activity. In addition, revenue invested significantly in the same period in 
infrastructure, IT systems and customs capability building. This measure relates to the ‘areas’ 
of smuggling/illicit trade and organised crime. 

Due to  the UK departure from  the EU, investment  was needed in  infrastructure,  IT systems 
and in HR to manage the significant increase in third country trade and to facilitate legitimate 
trade,  increase  EU  border  protection,  address  the  heightened  risk  to  the  EU’s  financial 
interests and help  prevent  and detect  any potential fraud. The deployment  of 808 additional 
staff  to  frontier  management  posts,  160  of  which  were  deployed  in  2021,  ensures  that  the 
necessary  increased  customs  controls  can  be  carried  out  on  new  third  country  routes, 
protecting the EU financial interests. 

24 

 
 
 
3.8.  Greece 

3.8.1.  Expenditure  –  Cohesion  policy:  establishment  of  a  Management  and 
Control  System  for  actions  and  projects  under  the  Recovery  and 
Resilience Fund (RRF) 

In 2021, Greece reported the establishment of a Management and Control System for actions 
and  projects  under  the  Recovery  and  Resilience  Fund  (RRF),  pursuant  to  Regulation  (EU) 
2021/241. It provides proportionate measures to combat fraud, corruption and double funding 
and the effective avoidance of conflicts of interest. Additionally, they prepared a Manual of 
Procedures  and  an  Anti-Corruption  and  Anti-Fraud  Strategy,  approved  by  Decision 
139614/10-11-2021 of the Director of the Special  Service for the Coordination  of the RRF. 
The main pillars of the strategy are prevention, detection and effective response. The strategy 
also sets targets and is specified by means of further actions where necessary. 

3.8.2.  Horizontal: To clarify or consolidate existing rules 

In  2021,  Greece  reported  the  Ministerial  Decision  No  126082/11-10-2021  which  lays  down 
the  procedures  for  carrying  out  audits  within  the  remit  of  the  Independent  Department  for 
Extraordinary Audits of Co-financed Programmes, which falls under the Directorate-General 
for  Audit  of  Co-financed  Programmes,  Secretariat-General  for  Fiscal  Policy,  Ministry  of 
Finance (Greek Government Gazette, Series II, No 4897/22-10-2021). Issuing by the National 
Transparency Authority/AFCOS of a manual for handling complaints relating to programmes 
involving EU funds. 

The purpose of the Ministerial Decision is to lay down the rules for the conduct of audits by 
the  Independent  Department  for  Extraordinary  Audits  of  Co-financed  Programmes,  which 
falls  under  the  Directorate-General  for  Audit  of  Co-financed  Programmes.  The  Independent 
Department  for  Extraordinary  Audits  of  Co-financed  Programmes  carries  out  extraordinary 
audits to investigate irregularities in OPs or actions co-financed by the EU or the EEA Grants. 
The  audits  are  conducted  following  a  complaint  (if  the  complaint  is  assessed  as  requiring 
investigation)  or  following  an  audit  order  issued  by  the  Minister  for  Finance,  the  National 
Transparency Authority or the European Commission. 

25 

 
 
 
 
3.8.3.  Horizontal:  Prevention  and  suppression  of  money  laundering  and 

terrorist financing 

In  2021,  Greece  reported  the  adoption  of  a  new  law,  Law  4816/2021  on  prevention  and 
suppression  of  money  laundering  and  terrorist  financing  and  the  amendment  of  Law 
4557/2018  –  Transposition of Directive  (EU) 2018/1673  of the European Parliament and of 
the Council of 23 October 2018 on combating money laundering by criminal law, acceleration 
of the administration of justice and other urgent provisions. 

The purpose of Chapter B is to improve and streamline the existing legislative framework to 
combat money laundering through criminal law by transposing Directive (EU) 2018/1673 of 
the  European  Parliament  and  of  the  Council  of  23  October  2018  on  combating  money 
laundering  by  criminal  law  (OJ  L  284).  Chapter  C  aims  to  speed  up  the  administration  of 
justice and to make it easier for citizens to seek judicial protection. 

3.9. 

Spain 

3.9.1.  Horizontal: A National Anti-Fraud Strategy for Spain 

In 2020, Spain (AFCOS) prepared and presented to the Commission the project “A National 
Anti-Fraud Strategy for Spain”. The Commission pre-selected the project on 4 January 2021 
and approved it for financing by the Technical Support Instrument on 2 March 2021.  

This project aims to comply with the recommendations made by the European Commission in 
the 2018 and in the 2020 PIF Report, and by the Special Report No. 6/2019 of the European 
Court of Auditors. The project, kick-off meeting of which took place on 22 October 2021, is 
currently  ongoing  with  technical  assistance  of  the  OECD.  It  has  an  execution  period  of  19 
months and aims to prepare a National Anti-Fraud Strategy that comprehensively includes the 
four steps of the anti-fraud cycle (prevention, detection, investigation and recovery/sanction). 

26 

 
 
 
 
 
3.9.2.  Horizontal:  Enhanced  Cooperation  with 

the  European  Public 

Prosecutor’s Office (‘EPPO’) 

In 2021, Spain reported the approval of Organic Law 9/2021, of 1 July, on the application of 
the  Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced 
cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’). As 
one of the 22 countries that participates in the work of protecting the EU budget against fraud, 
using  the  so-called  "Enhanced  Cooperation  Procedure",  Spain  approved  in  2021  the  above-
mentioned Organic Law. It contains rules of application of Regulation (EU) 2017/1939 to the 
Spanish  legal  system,  completing  its  provisions  and  regulating  a  special  procedure  for 
investigations  by  the  delegated  European  Prosecutors  for  those  crimes  whose  competence 
corresponds to them according to the European rules. 

3.9.3.  Expenditure  –  Centralised  direct  management:  Establishment  of  a 
Recovery, Transformation and Resilience Plan Management System 

In  2021,  Spain  approved  a  Ministerial  Order  (HFP/1030/2021)  establishing  the  Recovery, 
Transformation  and  Resilience  Plan  Management  System,  and  a  Ministerial  Order 
(HFP/1031/2021)  establishing  the  procedure  and  format  of  the  information  which  will  be 
provided  by  the  Entities  of  the  State,  Autonomous  Community  and  Local  Public  Sector.  It 
enables  monitoring  compliance  with  milestones  and  objectives,  budget  and  accounting 
execution of the measures of the components of the Recovery, Transformation and Resilience 
Plan. 

  Article 6 of the Ministerial Order HFP/1030/2021 reinforces mechanisms for prevention, 
detection  and  correction  of  fraud,  corruption  and  conflicts  of  interests.  Additionally,  it 
establishes  an  obligation  for  all  entities  participating  in  the  execution  of  measures  of  the 
plan to have an “Anti-fraud Measures Plan”. 

  The  Ministerial  Order  HFP/1031/2021  aims  to  design  a  system  of  management  and  to 
monitor  information  in  order  to  comply  efficiently  and  with  legal  certainty  to  the 
requirements that the Recovery, Transformation and Resilience Plan entails. 

3.10.  France 

3.10.1. Sectoral  –  Revenue  (Customs  and  Tax  fraud)  and  Expenditure  – 
Agriculture,  Fisheries,  Cohesion  Policy  and  Centralised  direct 

27 

 
 
 
 
management:  A  national  anti-fraud  strategy  devoted  to  combating  fraud 
affecting the financial interests of the EU 

In 2021, France reported that it has drawn up a national anti-fraud strategy that, for the first 
time,  is  exclusively  devoted  to  combating  fraud  affecting  the  financial  interests  of  the 
European  Union.  In  line  with  the  European  Commission’s  recommendations,  France  has 
adopted  a  strategy  laying  down  the  main  areas  which  the  national  policy  combating  fraud 
against the EU budget  will focus on for the next six years.  It was drawn up in coordination 
with the national institutions concerned (directorates of central authorities, the management, 
audit  and  control  authorities  for  European  funds,  administrative  and  judicial  investigative 
offices,  judicial  authorities  and  courts  of  auditors).  The  European  institutions  and  the 
European Public Prosecutor’s Office also took part in drawing up the measures concerned. 

The strategy is based on three objectives: 

(1) 

 preventing fraud through improved risk management; 

(2) 

(3) 

 detecting fraud by enhanced data collection, sharing and processing; 

 prosecuting and punishing fraud by improved administrative and judicial coordination. 

It  is  backed  up  by  a  road  map  that  lays  down  for  the  next  three  years  (2022-2024)  the  39 
specific  measures  that  will  be  carried  out  by  the  authorities  and  public  bodies.  They  will 
concern  in  terms  of  prevention,  factoring  the  risk  of  fraud  into  internal  control  policies, 
making staff responsible for combating fraud more professional  and raising awareness  as to 
corruption risks. In terms of detection, they will concern enhancing the collection, sharing and 
processing of available data.  In terms of the prosecution and punishment of fraud, measures 
will enhance the effectiveness of OLAF’s investigations, improve the effectiveness of judicial 
investigations by a better understanding of the issues involved in combating fraud against the 
EU  budget.  Regular  exchanges  with  the  European  Public  Prosecutor’s  Office  will  be 
organised aiming for a more effective response to reporting of fraud, raising awareness of the 
risks of fraud against the interests of the EU in courts of auditors and boosting collection of 
amounts owed. 

The  Mission  interministérielle  de  coordination  anti-fraude  (MICAF,  the  Inter-Ministerial 
Anti-fraud Coordination Office) will monitor implementation of the road map. 

3.10.2. Revenue  (Customs  and  Tax  fraud)  and  Expenditure  –  Agriculture, 
Fisheries, Cohesion Policy and Centralised direct management: Updated 
guidelines on the anti-corruption policy framework 

In  2021,  France  reported  that  the  Agence  française  anticorruption  (AFA,  the  French  Anti-
corruption  Agency)  has  published  new  guidelines  updating  the  anti-corruption  policy 
framework.  The  AFA  is  responsible  for  drawing  up  guidelines  to  help  public  and  private-
sector  entities  prevent  and  detect  corruption  risks.  These  guidelines  were  published  in  the 

28 

 
 
 
Official Journal of the French Republic on 12 January 2021 and are available on the Agency’s 
website. The AFA’s first guidelines were published on 22 December 2017. 

The AFA has  published new  guidelines updating the anti-corruption policy  framework. The 
recommendations break down into three parts: 

(1) 

(2) 

(3) 

the first part consists of general provisions concerning the anti-corruption programme 
as  it  applies  to  all  players,  focused  on  three  areas:  the  management  team’s 
commitment,  awareness  of  the  corruption  risks  to  which  the  entity  is  exposed 
(mapping  the  entity’s  risks),  and  management  of  those  risks  by  way  of  prevention, 
detection and corrective measures;  

the  second  part  concerns  companies:  the  guidelines  encourage  the  companies 
concerned  to  set  up  a  single  whistleblowing  report  reception  system  and  explain  the 
role of internal control and accounting controls;  

the  third  part  addresses  public-sector  entities:  a  section  on  prevention  lists  what  is 
expected  of  an  anti-corruption  code  of  conduct  and  emphasises  the  importance  of 
training  and  awareness  raising;  the  sections  on  detection  and  corrective  action 
highlight  the  need  to  direct  existing  programmes  towards  combating  risks  of 
corruption. 

3.11.  Croatia 

3.11.1. Anti-Corruption Strategy for 2021-2030 

In 2021, Croatia laid down their Anti-Corruption Strategy for 2021-2030, which sets out the 
strategic  objectives  in  the  area  of  the  fight  against  corruption  for  the  period  concerned  and 
focuses  in  particular  on  the  prevention  of  corruption.  Each  of  the  strategic  objectives  is 
accompanied by a range of measures which concern different priority sectoral areas such as 
public  administration,  the  political  system,  the  judiciary,  economy,  public  finance,  health, 
science, etc. The Strategy sets out 95 measures, which are elaborated in Action Plans. 

The Strategy is divided into five main specific objectives: 

(1) 

(2) 

Strengthening the institutional and normative anti-corruption framework; 

Increasing the transparency and openness of the work of public authorities; 

(3) 

Improving integrity and conflict management systems; 

(4) 

(5) 

Strengthening the anti-corruption potential of the public procurement system; 

Raising public awareness of the harms of corruption, the need to report irregularities 
and enhance transparency. 

29 

 
 
 
The measures under the objectives relate inter alia to the protection of whistle-blowers and the 
prevention of irregularities and fraud in the use of ESI Funds. 

3.11.2. Improvement  of  the  anti-fraud  legal  framework  and  of  the  Paying 

Agency’s procedures 

In 2021, Croatia improved the anti-fraud legal framework and amended as well as improved 
the  Paying  Agency’s  procedures  and 
the 
implementation  of  measures  under  the  Rural  Development  Programme  of  the  Republic  of 
Croatia for 2014-2020 were updated, and a provision was adopted under which, in the event 
of confirmation of charges of suspected fraud, the beneficiary’s application is rejected.  

internal  control  system.  The  Rules  on 

Where  a  judicial  authority  confirms  fraud  charges,  the  Paying  Agency  is  to  reject  the 
beneficiary’s  application  and  exclude  the  beneficiary  from  participating  in  the  aid  award 
procedure in the calendar year in which the grounds for exclusion were established and in the 
following  calendar  year.  In  case  of  falsified  documents,  submission  of  false  information, 
artificial  creation  of  conditions  or  confirmed  suspicion  of  fraud  by  the  competent  (judicial) 
authority. 

With  regard  to  the  Paying  Agency,  it  amended  its  procedures  and  working  methods  for 
internal  controls  relating  to  the  detection,  prevention  and  sanctioning  of  irregularities  and 
fraud. The Paying Agency’s checklists for verification of the eligibility  of beneficiaries and 
projects have been amended in accordance with the amendments to the Rules. 

3.11.3. Implementation  of  the  project  ‘Acquiring  of  equipment  and  tools  for  e-
Forensics and training of officials’, funded by the European Social Fund 

In  2021,  Croatia  reported  with  the  development  of  IT  business  support  services,  a  growing 
need  for  e-forensic  tools  in  tax  supervision  and  the  fight  against  tax  fraud,  as  there  is  an 
increase  in  data  manipulation  through  specially  designed  (malicious)  programmes  aimed  at 
reducing  revenue and tax obligations. The plan  is  to  buy  four sets  of specialised equipment 
and software tools as well as carry out training on methods and techniques for the use of e-
forensic equipment and tools in the process of monitoring and combating tax fraud. 

30 

 
 
 
 
3.12.  Italy 

3.12.1. Horizontal: To enforce the rules in line with developments in EU law with 

regard to money laundering 

In  2021,  Italy  reported  the  Legislative  Decree  No  195  of  8  November  2021,  which  entered 
into  force  on  15  December  2021.  It  transposed  Directive  (EU)  2018/1673  on  combating 
money laundering by criminal law. Now due to amendments to the Criminal Code introduced 
by the Decree, criminal negligence and minor offences (where such offences are punishable 
by a term of imprisonment of between six months and one year) may also constitute predicate 
offences for the offences of money laundering (Article 648-bis of the Criminal Code (CC)), 
self-laundering (Article 648-ter.1 CC), use of money, property or benefits of unlawful origin 
(Article 648-ter CC) and handling the proceeds of crime (Article 648 CC). 

3.12.2. Horizontal: To enforce the rules in line with developments in EU law with 
regard  to  cooperation  on  the  establishment  of  the  European  Public 
Prosecutor’s Office (EPPO) 

In 2021, Italy reported another Legislative Decree the Legislative Decree No 9 of 2 February 
2021,  ‘Provisions  to  align  national  law  with  Council  Regulation  (EU)  2017/1939  of  12 
October  2017  implementing  enhanced  cooperation  on  the  establishment  of  the  European 
Public  Prosecutor’s  Office  (EPPO).  It  was  published  in  the  Official  Gazette  of  5  February 
2021 and  entered into force on 6  February  2021. The Decree contains  rules on determining 
the number of European Delegated Prosecutors (EDPs), defining the division of tasks and the 
geographical distribution of the EDPs’ work, and making changes to the organisation of the 
judiciary with regard to the appointment and operation of the EDPs. As regards cooperation 
with EPPO, the Guardia di Finanza has issued its operational units with specific guidance. 

Regarding  the  prevention  of  corruption  in  public  procurement  persons  performing  duties  or 
activities corresponding to those of public officials and persons entrusted with a public service 
in countries that are not part of the European Union if the act harms the financial interests of 
the  European  Union,  were  included  in  the  category  of  persons  punishable  for  international 
corruption. 

31 

 
 
 
 
3.12.3. Sectoral:  Expenditure  –  Agriculture,  Fisheries  and  Cohesion  policy: 
identification  and 
Memorandum  of  Understanding  on  prevention, 
prosecution  of  unlawful  activities  under  programmes  covered  by  the 
National Recovery and Resilience Plan (NRRP) 

In 2021, Italy enacted the Decree-Law No 77 of 31 May 2021 on ‘Governance of the National 
Recovery and Resilience Plan and initial measures to reinforce administrative structures and 
speed up and streamline procedures’. On the basis of this Decree-Law, on 17 December 2021, 
the  Guardia  di  Finanza  signed  a  Memorandum  of  Understanding  with  the  General  National 
Accounts  Department  on  preventing,  identifying  and  prosecuting  unlawful  activities  under 
programmes covered by  the National  Recovery  and Resilience Plan (NRRP). Guidance was 
sent to the operational units by means of Circular No 363288 dated 18 December 2021. 

Public authorities managing activities under the NRRP can now sign specific memoranda of 
understanding with the Guardia di Finanza with the intention to increase activities to monitor, 
prevent  and  fight  corruption  and  fraud,  amongst  other  things.  These  authorities  are  also 
responsible for recovering sums that have been unduly used or subject to fraud. 

3.13.  Cyprus 

3.13.1. Sectoral: Expenditure  –  Agriculture: Policies on  Anti-Fraud, Conflict of 

Interest, Whistle-blower protection 

In 2021, Cyprus established procedures for reporting and managing the fight against fraud. In 
addition, they established measures to protect the witness of public interest and/or the persons 
involved, as well as against retaliation in the workplace. 

32 

 
 
 
 
3.13.2. Sectoral: Expenditure – Agriculture: Training and staff awareness 

In 2021, Cyprus organized various trainings aimed at  raising awareness  of the risk of  fraud 
among staff, make them recognize red flags and what actions to take. 

3.13.3. Sectoral:  Revenue  –  Customs:  Combating  the  smuggling  of  duty  free 

goods 

In 2021, the Customs & Excise Department in Cyprus increased and intensified the controls at 
the entry and exit points of the Republic of Cyprus in the ports and airports. In addition, they 
also  intensified  controls  at  the  crossing  points  from  the  occupied  to  the  free  areas  and 
conducted controls in premises, warehouses and houses for the seizure of duty free goods or 
any other goods infringing customs legislation. 

3.14.  Latvia 

3.14.1. Horizontal: To enforce the rules in line with developments in EU law 

In 2021, Latvia reported the adoption of the law on assistance to OLAF and a corresponding 
manual  of  procedures  for  implementation  of  this  law.  The  purpose  is  to  ensure  effective 
assistance  to  OLAF  in  administrative  investigations.  The  law  stipulates  that  the  Ministry  of 
Finance  as  AFCOS  shall  provide  assistance  to  OLAF  in  the  capacity  of  the  competent 
authority within the meaning of Regulation No 883/2013. The Ministry of Finance as AFCOS 
is also responsible for providing information on bank accounts to OLAF.  

33 

 
 
 
 
 
The  relevant  law  gives  AFCOS  rights  to  participate  and  provide  assistance  in  on-the-spot 
checks  carried  out  by  OLAF,  rights  to  request  information  or  documents  at  the  disposal  of 
private persons within the scope of the administrative investigation case, and rights to request 
and receive information on bank accounts within the scope of the administrative investigation 
case. It also foresees possibility to impose a legal obligation on the private person in case of 
refusal to cooperate. 

3.14.2. Sectoral:  Expenditure  –  Agriculture:  New  electronic  tool  to  ensure 
transparency  and  to  simplify  the  process  of  purchase  of  machinery  and 
equipment by farmers 

In 2021, Latvia reported the development of an electronic tool  – a “Catalogue of machinery 
and  equipment"  –  which  ensures  transparency  and  simplifies  the  process  of  purchasing 
machinery  and  equipment  by  farmers  with  regard  to  the  measure  “Investments  in  tangible 
assets”  financed  by  the  EAFRD.  A  catalogue  replaces  the  procurement  procedure.  Its 
application will reduce the possibility of fraudulent procurement, including the risk of conflict 
of  interest.  The  main  information  contained  in  the  catalogue  (technical  offers  with 
specifications  and  prices)  are  authorized  representatives  of  manufacturers  or  manufacturers 
themselves. 

3.14.3. Sectoral: Revenue – Tax fraud: Improved detection of criminal offences in 

the area of tax fraud 

In  2021,  Latvia  reported  amendments  to  the Criminal  Law:  a  separate  legal  qualification  of 
fraud cases when a non-executed transaction is included in a VAT declaration. In addition, the 
purchase of special equipment and software by the Tax Compliance Incentive Department to 
retrieve data from storage devices sufficient for initiating criminal proceedings. Consequently, 
the number of initiated criminal  proceedings in  the area of tax fraud will increase;  the state 
will be able to recover the amount of damage caused and start a criminal prosecution. 

34 

 
 
 
 
 
3.15.  Lithuania 

3.15.1. Horizontal:  Establishment  of  the  Centre  of  Excellence  in  the  Prevention 

of Money Laundering (AML Centre) 

In  2021,  Lithuania  reported  following  the  recommendations  of  the  International  Monetary 
Fund, the European Commission, the Committee of Experts on the Evaluation of Measures to 
Combat  Money  Laundering  and  the  Financing  of  Terrorism  and  MONEYVAL,  the 
establishment  of  the  Centre  of  Excellence  in  the  Prevention  of  Money  Laundering  (AML 
Centre) on 17 May 2021. On 14 October 2021, the Prosecutor General 's Office, Ministry of 
the  Interior,  Financial  Crime  Investigation,  Service,  Police  Department,  State  Tax 
Inspectorate  and  Special  Investigation  Service  and  the  AML  Centre  signed  cooperation 
agreements aimed at strengthening the protection of the national financial system against its 
use for money laundering and other financial crimes. 

3.15.2. Horizontal:  To  clarify  or  consolidate  existing  rules  and  to  enforce  the 

rules in line with developments in EU law 

In 2021, Lithuania reported amendments to the Criminal Code of the Republic of Lithuania to 
be in line with the requirements of Directive (EU) 2017/1371 and Directive (EU) 2015/849. 
Under Article 216 of the Criminal Code (CC) two additional elements have been included - 
participation  in  criminal  activity  and  the  intention  to  facilitate  another  person  to  avoid  the 
legal consequences of a criminal activity. Article 189 (Acquisition or realisation of proceeds 
of crime) was amended too. 

3.15.3. Horizontal:  Adapting to  changing  circumstances  and  ensuring  a  smooth 

process for the administration of EU funds 

In  2021,  Lithuania  reported  amendments  to  its  legislation  in  order  to  allocate  functions 
between  the  institutions  "On  the  division  of  responsibilities  and  functions  between  the 
institutions in the implementation of the Operational Programme for Investments of European 

35 

 
 
 
 
Union  Funds  2014-2020  and  in  preparation  for  the  implementation  of  the  European  Union 
Funds Investment Programme 2021-2027". This amendment will ensure more efficient work 
and encourages a full understanding of the issue in order to make the right decisions. 

3.16.  Luxembourg 

3.16.1. Horizontal: Increase of human resources at AFCOS Luxembourg 

In  2021,  Luxembourg  reported  an  increase  of  human  resources  at  AFCOS  Luxembourg  to 
strengthen  the  team.  The  Luxembourg  AFCOS  team  needed  to  be  reinforced  to  ensure 
adequate coordination in the fight against fraud and the protection of EU financial interests. 

3.17.  Hungary 

3.17.1. Horizontal: Various anti-corruption activities by the Public Procurement 

Authority 

In 2021, Hungary reported anti-corruption activities by the Public Procurement Authority.  

Activities covered the public procurement market, in particular, 

  helping to put e-procurement into action; 

  examining the legality of public procurements: verifying the legality of notices; verifying 
the  legality  of  negotiated  procedures  without  publication;  verifying  the  performance  and 
amendment of the public procurement contracts concluded; 

  providing information and organising training; 

  actions to increase transparency, e.g. code of ethics; 

  and organizational measures by the Authority. 

The  Public  Procurement  Authority’s  control  activities  play  a  key  role  in  increasing  the 
transparency of public procurements, aiming at a transparent use of public money, including 
EU funds. 

36 

 
 
 
 
3.17.2. Sectoral:  Revenue  –  Customs:  Measures  in  the  field  of  customs  by  the 

National Tax and Customs Administration 

In 2021, Hungary undertook various measures in the field of customs by the National Tax and 
Customs Administration: 

  Publication of the 2022 plan for post-release checks and the definition of the 2022 annual 

audit exercise. 

  Reorganization of the Customs Department, creation of the Coordination and Methodology 
Unit (VFO-KMO), which will conduct real time interventions and analysis of risk factors. 

  Patrolling  activities  have  been  regrouped  into  a  single  organizational  unit  as  part  of  the 
Law  Enforcement  Plan.  The  unit  has  also  been  given  the  powers  to  perform  customs 
checks. 

  Plan  for  the  development  of  video-surveillance  and  imaging  systems  at  the  Schengen 

border crossing points. 

By  securing  EU  and  domestic  budget  revenues  and  strengthening  the  deterrent  effect, 
organised,  centrally  coordinated,  risk  assessment-based  control  activities  will  contribute 
greatly towards the protection of the Union’s financial interests and the fight against fraud. 

3.17.3. Sectoral  –  Expenditure:  Agriculture,  Fisheries  and  Cohesion  policy: 
Compilation  of  a case repository for  cases of  irregularities classified as 
‘suspected fraud’ during the 2014–2020 

In  2021,  Hungary  reported  the  compilation  of  a  case  repository  for  cases  of  irregularities 
classified  as  ‘suspected  fraud’  during  the  2014-2020  programming  period,  illustrating  the 
experiences of the managing authorities and the good practices to be applied. 

The  case  repository  assists  the  work  of  staff  dealing  with  irregularities  and  checks  so  as  to 
increase the effectiveness of the Member State’s anti-fraud activities and ensure that as much 

37 

 
 
 
 
support  as  possible  is  used  in  line  with  the  rules  and  with  the  objectives  of  the  operational 
programmes.  The  case  repository  contains  cases  of  irregularities  classified  as  ‘suspected 
fraud’  during  the  2014–2020  programming  period,  the  experiences  of  the  managing 
authorities, and examples of AFCOS cases. 

3.18.  Malta 

3.18.1. Horizontal: Update on the National Anti-Fraud and Corruption Strategy 

(NAFCS) 

In 2021, Malta finalized the update to the 2008 NAFCS. The updated NAFCS was tabled in 
parliament  in  the  second  half  of  H1-2021.  The  updated  strategy  includes  23  action  points 
related to strengthening the fight against fraud and corruption through, amongst others: 

  Training; 

  Communication campaigns; 

  Information Technology tools; 

  A risk assessment on a national level; and 

  The  enhancement  of  networks  for  collaboration  between  national  authorities  and  with 

international partners. 

Its aim is to continue to provide for a normative, institutional and operational framework for 
the effective and efficient fight against fraud and corruption. The action plan, spanning over 
three  years,  with  specific  time  frames  for  the  implementation  of  each  action  point,  aims  to 
enhance the strategic objectives of the NAFCS, namely: 

(1) 

Capacity building; 

(2) 

Communication strategy; 

(3)  Maximization of national co-operation; and 

(4)  Maximization of EU and international co-operation. 

38 

 
 
 
3.19.  Netherlands 

3.19.1. Sectoral: Expenditure – Cohesion policy: Fraud Risk Assessment 

In 2021, the Netherlands reported a Fraud Risk Assessment carried out on 14 June 2021. The 
results were recorded in a final note, which was discussed and adopted on 8 July 2021. 

Arachne  is  primarily  designed  to  review  parties’  cohesiveness  using  ‘surrounding  view’. 
Check  for  financial  difficulties  (inter  alia  bankruptcy).  Matching  with  other  funds  is 
constrained by limited use by other entities. The Netherlands Chamber of Commerce (KvK) 
and Company Info are used as additional sources of information. 

3.19.2. Sectoral: Expenditure – Cohesion policy: Updating of checklists 

In  2021,  the  Netherlands  reported  that  checklists have  been  updated  and  adjusted.  They  are 
used to implement project grants to reflect REACT-related aspects. 

3.19.3. Sectoral: Revenue – Customs: New e-commerce team which assesses and 

processes all e-commerce declarations 

The Netherlands  reported that a new dedicated e-commerce team was set up by Customs in 
2021 to assess and process all e-commerce declarations. E-commerce is an important element 
which requires a  good overview. This  is  done by  a dedicated team  which focuses solely on 
this task. 

39 

 
 
 
 
 
3.20.  Austria 

3.20.1. Horizontal: Detection and deactivation of dummy companies 

3.20.2. Sectoral:  Expenditure  –  Cohesion  policy:  Monitoring  and  ensuring  the 
proper use of funds and the notification of identified irregularities 

In  2021,  Austria  reported  an  update  to  their  administrative  measures:  The  high  density  of 
verifications  pursuant  to  Article  125(4)  of  Regulation  1303/2013  for  the  2014-2020 
programming  period  serves  to  prevent  irregularities.  The  verification  procedure  allows  the 
administrative bodies to check all the expenditure submitted by the beneficiary.  In addition, 
the entire funding process is depicted in a central database, including the settlement process. 
The Arachne data-mining pool, provided by the Commission, is also used for risk evaluation 
and risk analysis. 

3.20.3. Sectoral: Revenue – Fraud: Combating benefit fraud 

In  2021,  Austria  reported  combating  social  benefit  fraud  through  the  task  force  on  social 
benefit fraud (‘TF SOLBE’) BK (‘Federal Criminal Police Office’) Department 7. Results in 
the fight against social benefit fraud depend on the respective human resources. 

40 

 
 
 
 
 
3.21.  Poland 

3.21.1. Sectoral: Expenditure – Cohesion policy: IT application that collects data 

about specific entities or individuals in one place 

In 2021, Poland reported a new IT application called SKANER, enabling the user to search 
information about specific entities and persons with regard to personal and capital links in one 
place. The purpose of this IT application is to obtain information on entities and individuals 
from different data sources. Access to information through a single application helps to better 
protect the EU’s financial interests and fight fraud, as it significantly improves the verification 
process when selecting projects for co-financing, concluding grant agreements and addenda to 
those agreements, as well as carrying out the final accounting for projects and controls. 

3.21.2. Sectoral:  Revenue  –  Tax  Fraud:  Introduction  of  warning  letters  by  the 

Head of the National Revenue Administration 

In  2021,  Poland  reported  a  new  competence  of  the  Head  of  the  National  Revenue 
Administration: the ability to send warning letters informing taxpayers that goods or services 
supplied  to  them  or  to  their  trading  partners  may  involve  at  least  one  supplier  acting  as  a 
‘missing  trader’.  The  warning  letters  will  be  a  tool  to  combat  VAT  fraud  (carousel  fraud). 
This tool complements other solutions already in place (e.g. the right to block the account of a 
qualified entity in order to safeguard the financial interests of the state). It will tighten up the 
tax system,  safeguard the financial interests of the State, improve the certainty of  economic 
transactions and increase the competitiveness of goods supplied by honest entrepreneurs. 

41 

 
 
 
 
 
3.21.3. Sectoral:  Expenditure  –  Agriculture:  Recovery  procedure  under  the 

Common Agricultural Policy 

In  2021,  Poland  reported  the  adoption  of  a  recovery  procedure  under  the  Common 
Agricultural Policy. The introduction of periodic lists of cases registered in the debtor’s ledger 
whose balance exceeds EUR 1.000.000 and cases if the limitation period expires in the course 
of the respective year. The list will be sent every three months to recovery units who can take 
the  necessary  measures  to  suspend  the  limitation  period  and  recover  undue  payments  or 
overpayments. 

3.22.  Portugal 

3.22.1. Horizontal:  Implementation  of  the  National  Anti-Corruption  Strategy 

2020-2024 

In 2021, Portugal reported the adoption of measures set out in the 2020-2024 National Anti-
Corruption Strategy, approved by the Resolution of the Council of Ministers No 37/2021 of 6 
April  2021.  The  Law  No  94/2021  of  21  December  2021  approves  measures  set  out  in  the 
National  Anti-Corruption  Strategy.  It  amends  the  Criminal  Code,  the  Code  of  Criminal 
Procedure and related laws with regard to offences committed by holders of political office in 
the  exercise  of  their  duties  (crimes  de  responsabilidade).  The  aim  is  to  strengthen  the 
criminalisation of corruption committed by holders of political  office. The strategy includes 
amendments  to  the  Criminal  Code,  the  Code  of  Criminal  Procedure  and  related  laws  with 
regard to offences committed by holders of political office in exercise of their duties. 

3.22.2. Horizontal:  Special  public  procurement  measures 

to 

improve 

transparency in pre-contractual procedures 

In  2021,  Portugal  reported  the  creation  of  an  independent  committee  that  assesses  pre-
contractual  procedures  relating  to  the  implementation  of  projects  financed  using  European 
funding. Now contracts concluded as a result of any procedures covered by the special public 
procurement measures, and if the contract value is less than EUR 750.000 must be submitted 
in  electronic  format  to  the  Court  of  Auditors  within  10  days  after  the  contract  was  signed, 

42 

 
 
 
 
accompanied by the respective administrative file. The submission is a pre-requisite that the 
contract comes into effect. 

3.22.3. Horizontal: Joining the early detection and exclusion system (EDES) 

In  2021,  Portugal  reported  that  the  MA  of  the  OP  for  the  North  region  (NORTE  2020)  has 
indicated that, in accordance with Article 135 of Regulation No 2018/1046 of the European 
Parliament and of the Council, it joined the early detection and exclusion system in 2021. The 
aim of the system is to identify persons or entities that pose a risk to the financial interests of 
the European Union or that are in one of the exclusion situations referred to in Article 136 of 
the same Regulation. 

3.23.  Romania 

3.23.1. Horizontal: Institutional framework for collaboration with the EPPO 

In 2021, Romania adopted the Law No 6/2021 establishing measures for the implementation 
of  Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced 
cooperation  on  the  establishment  of  the  European  Public  Prosecutor’s  Office  (EPPO).  This 
legislative act implements the EPPO Regulation by means of measures for the organisation of 
the relevant national institutions through measures for detecting, investigating and prosecuting 
PIF offences. 

43 

 
 
 
 
 
3.23.2. Horizontal:  Establishment  of  measures  to  facilitate  the  use  of  financial 
information and financial analysis for prevention, detection, investigation 
or prosecution of certain criminal offences 

In  2021,  Romania  reported  the  Government  Ordinance  No  9/2021,  which  establishes 
measures  to  facilitate  the  use  of  financial  information  and  financial  analysis  for  the 
prevention,  detection,  investigation  or  prosecution  of  certain  criminal  offences.  This  Order 
facilitates  access  for  competent  authorities  to  financial  information,  financial  analysis  and 
bank account information and cooperation between the National Office for the Prevention and 
Combating of Money Laundering and the Financial Intelligence Units of other Member States 
of the European Union. 

3.23.3. Horizontal: Approval of National Anti-Corruption Strategy 2021-2025 

In  2021,  Romania  reported  the  enactment  of  the  Government  Decision  No  1269/2021 
approving the National Anti-Corruption Strategy 2021-2025 and related documents. The NAS 
2021-2025 is a continuation of the criminal policy in the fight against corruption developed in 
Romania  since  2001.  It  creates  inter-institutional  collaboration  mechanisms  and  specific 
objectives  to  fight  corruption  affecting  the  EU’s  financial  interests.  In  this  context,  the  new 
programmatic  document  preserves  and  promotes  the  approach  and  mechanisms  created  by 
previous anti-corruption strategies. 

3.24.  Slovenia 

3.24.1. Sectoral:  Revenue  –  Customs  and  Tax  fraud:  Enhanced  supervision  on 

TOR and VAT losses 

In  2021,  Slovenia  reported  two  measures  from  the  Financial  Admin  of  the  Republic  of 
Slovenia  (FARS).  Firstly,  the  enhanced  supervision  on  TOR  and  VAT  losses,  due  to 
undervaluation of import goods in connection with the customs procedure 42. Abuse happens 
when importer declare lower value of goods on import in order to pay less custom duties and, 

44 

 
 
 
 
at the same time importer also abuse custom procedures 42 by not paying VAT on the supply 
of  goods  to  another Member State. Secondly, an update on risk management in  the field  of 
customs, excise and environmental regulations (No.5/2021) has been conducted. 

3.24.2. Addition of red flags to the ARSKTRP’s Manual 

In 2021, Slovenia reported that the Agency for Agricultural Markets and Rural Development 
(ARSKTRP)  introduced  new  indicators  of  fraud  (red  flags)  as  well  as  artificial  creation  of 
conditions for the three areas in the ARKSTRP’s Manual of indicators of fraud and artificial 
creation  of  conditions.  Definitions  of  ex-ante  controls  for  preventing  the  same  have  been 
entered and a provision for assessments of gross, net and target risk too. The red flags mainly 
relate  to  areas  of  forged  documents  (including  bills  etc.),  false  declarations  by  beneficiaries 
and various ways of creating artificial conditions with a view to receiving undue funds from 
the  Government  Office  for  Development  and  EU  Cohesion  Policy:  reports  on  operational 
measure-institutional cooperation [sic]. 

The  introduction  of  red  flags  for  fraud  and  artificial  creation  of  conditions  for  the  missing 
areas  of  work,  together  with  the  definition  of  ex-ante  (preventive)  controls,  significantly 
reduces the risk that fraud and artificial creation of conditions will occur. They form part of 
the checklists of verifications. They are ex-ante controls before authorisation is granted for the 
disbursement of funds to beneficiaries, and are designed to check the most likely scenarios for 
fraud  and  artificial  creation  of  conditions,  which  makes  them  highly  effective.  The 
implementation  of  ex-ante  (preventive)  controls  on  the  basis  of  red  flags  means  that  the 
eligibility of disbursements is monitored and damage to the EU budget is prevented, i.e. the 
EU’s financial interests are protected. 

3.24.3. Adoption of the Rules on the Register of providers of exchange services 

In 2021, the Office for Money Laundering Prevention in Slovenia reported the adoption of the 
Rules  on  the  register  of  providers  of  exchange  services  between  virtual  currencies  and  fiat 

45 

 
 
 
 
currencies as well as custodian wallet providers. In addition, this register was also established. 
The  Ministry  of  the  Interior  –  European  Fund  Service  reported  on  Public  Procurement 
measures. It should enhance more effective monitoring of the implementation of measures to 
prevent  money  laundering  and  the  financing  of  terrorism  at  providers  of  exchange  services 
between virtual currencies and fiat currencies as well as custodian wallet providers. 

3.25.  Slovakia 

3.25.1. Sectoral:  Expenditure  –  Fisheries  and  Cohesion  Policy:  Protecting  ESI 

funds through an amendment of the Act no. 292/2014 Coll. 

In  2021,  Slovakia  reported  the  Amendment  of  the  Act  no.  292/2014  Coll.  on  the  shares 
received  from  European  Structural  and  Investment  Funds  (ESI  funds).  It  sets  the  rules  for 
provision  of  received  shares  from  ESI  funds.  The  aim  of  the  amendment  is  to  reduce  the 
administrative  burden  on  beneficiaries  and  bodies  involved  in  the  management  and  control 
system of ESI funds and in addition, to increase the transparency by extending the scope of 
data which is  going to be gathered and then published. Another element introduced through 
this amendment  with  regard to  the protection of the EU´s  financial interests  is  an improved 
protection of the confidential information on proceedings contained in the reports on detected 
irregularities. 

3.25.2. Sectoral: Revenue – Customs and Tax fraud: Launch of a software tool to 

improve the process and outputs of customs analysis 

In  2021,  Slovakia  launched  software  tool  to  improve  the  process  and  outputs  of  customs 
analysis  with  an  impact  to  more  effective  performance  of  post-release  controls  and  the 
introduction  of  targeted  pre-release  measures.  The  effective  and  targeted  pre/post  -  release 
controls  have  a  positive  impact  on  the  customs  payments  assessment  and  thus  on  a  better 
protection of the EU´s financial interests. 

46 

 
 
 
 
3.25.3. Sectoral:  Expenditure  –  Agriculture:  Implementing  an  IT  system  into 

Rural Development Program (RDP) projects 

In  2021,  Slovakia  reported  the  implementation  of  elements  of  an  IT  system  into  Rural 
Development  Program  (RDP)  projects.  The  following  activities  are  already  carried  out 
electronically:  submission  of  an  application  for  the  Non-repayable  Financial  Contribution 
(NFC),  public  procurement,  evaluation  of  applications  for  NFC,  verification  of  conflicts  of 
interest.  The  digitalisation  and  introduction  of  independent  controls  greatly  limits  the 
possibilities  for  manipulation  in  processes,  which  have  thus  been  significantly  made  more 
transparent. 

3.26.  Finland 

3.26.1. Horizontal: A national anti-corruption strategy 

In  May  2021,  the  Finnish  government  adopted  an  anti-corruption  strategy  for  2020-2023, 
which  aims  at  engaging  public  administration  and  political  players  in  fighting  corruption 
efficiently,  encouraging  the  identification  of  corruption  and  the  transparency  of  decision-
making, improving authorities’ possibilities of holding accountable those guilty of corruption 
and  making  it  easier  to  draw  up  a  national  corruption  report.  The  strategy  contains  six 
development areas  and 77 measures. It will also  protect public funds against corruption and 
concerns all ministries, regional administration and political players. 

47 

 
 
 
 
 
3.27.  Sweden 

3.27.1. Horizontal: Annual work of the Swedish Council for the Protection of the 

European Union’s Financial Interests (SEFI council) 

In 2021, Sweden reported on the annual work of the Swedish Council for the Protection of the 
European Union’s Financial Interests (SEFI council). It is an ongoing measure to protect EU 
financial  interests  in  Sweden  and  responsible  for  coordinating  initiatives  in  Sweden  against 
fraud  and  other  abuse  of  EU-related  funds.  The  Swedish  Economic  Crime  Authority  is 
responsible for the Council’s offices. The Council enhances the cooperation between the 20 
agencies  that  are  implementing  EU-programmes  in  Sweden  and  that  are  responsible  for  the 
NGEU measures. The Council has also organised seminars on a number of anti-fraud issues to 
increase awareness and knowledge in the agencies. 

3.27.2. Sectoral:  Revenue  –  Customs  and  Expenditure:  Agriculture  and 
Fisheries:  New  working  group  on  fraud  issues  in  the  Swedish  Board  of 
Agriculture  &  mandatory 
for  employees  working  with 
distribution of EU funds 

training 

In  2021,  the  Swedish  Board  of  Agriculture  has  set  up  a  working  group  on  fraud  issues  and 
also  initiated  a  mandatory  training  for  employees  working  with  distribution  of  EU  funds 
within the agency’s area of responsibility. Additional agencies have been invited to participate 
in the training measures and in total around 430 employees have attended. 

It  is  important  that the national  agencies responsible for the management  of EU funds have 
the  necessary  knowledge  both  on  agency  and  individual  level  to  be  able  to  prevent  and 
discover potential fraud against EU financial interests, and one of the measures to reach that 
knowledge  is  to  educate  employees  at  relevant  positions  within  the  agency.  Also,  to 
coordinate the work on the fight against fraud is an important step to strengthen the agency's 
work on a macro level and make it more efficient. 

48 

 
 
 
3.27.3. Horizontal:  Inquiry  by  Swedish  Government  to  investigate  the  efficiency 

of the management of EU related funds in Sweden 

In  December  2020  the  Swedish  Government  initiated  a  public  inquiry  (dir.  2021:109)  to 
investigate  if  the  management  of  EU  related  funds  in  Sweden  are  effective  and  efficient 
regarding  organisational  structures,  shared  responsibilities  etc.  The  inquiry  is  charged  with 
proposing  measures  to  strengthening  the  organisational  structures  and  the  efficient 
management of EU funds in Sweden. 

The evaluation of how Swedish authorities ensure an effective and efficient use of EU funds 
in Sweden is expected to generate proposals on how to further strengthen the protection of EU 
financial interests in Sweden and increase the efficiency and transparency of the management 
of EU-funds in Sweden. 

49 

 
 
 
 
 
 
4.  ADDITIONAL MEASURES REPORTED BY THE MEMBER STATES 

4.1.  Germany:  Performance  of  a  fraud  risk  assessment  and  support  for  the 

operational work of the EPPO 

The  ‘BMAS’  (Federal  Ministry  of  Labour  and  Social  Affairs)  performed  the  fraud  risk 
assessment recommended in the Commission Guidance Note on Fraud Risk Assessment and 
Effective  and  Proportionate  Anti-Fraud  Measures  by  the  ESF  managing  authority  (MA)  for 
the  federal  ESF  programme.  As  part  of  the  fraud  risk  assessment  exercise,  the  impact  of 
common  fraud  risks  and  the  likelihood  of  them  occurring  are  assessed  and  the  measures 
required  to  assess  the  risks  are  described.  This  measure  was  already  notified  for  2020  and 
finalized in 2021. 

The ’BMF’ (Federal Ministry of Finance) was in charge of preparation of and support for the 
operational  work  of  the  European  Public  Prosecutor’s  Office  in  Germany  by  establishing 
contacts between the European Delegated Prosecutors and the competent national authorities 
to  clarify  future  cooperation  issues  (including  contact  persons,  reporting  channels,  IT 
interfaces). 

4.2.  Belgium 

4.2.1.  Efforts regarding ERDF and ESF 

ERDF  and  ESF  in  Wallonia:  As  part  of  the  implementation  of  the  RRF,  an  inter-federal 
monitoring  committee,  in  which  Wallonia  takes  part,  and  a  working  group  (involving  the 
Ministry of the Wallonia-Brussels Federation [Ministère de la Fédération Wallonie-Bruxelles] 
and  the  ESF  Agency  [Agence  FSE])  have  been  set  up.  They  shall  share  experiences, 
information  and best  practices (in particular in  terms  of anti-fraud  and control  strategy) and 
ensure proper coordination between their constituent bodies. 

ESF in the German-speaking Community: The Ministry of the German-speaking Community 
[Ministerium  der  Deutschsprachigen  Gemeinschaft]  has  drawn  up  a  manual  on  the  internal 
control  system  that  ensures  the  effectiveness  of  risk  management  and  safeguards  the 
Ministry’s  budget.  Using  this  manual,  the  Ministry  audited  IT  systems  (SAP,  etc.), 
procurement  processes  (procurement,  public  procurement,  etc.)  and  payment  and  closing 
procedures  in  2021.  These  measures  systematically  apply  to  the  financial  management  of 
European funds (such as the ESF). In 2021, the ESF managing authority carried out checks on 
copies of the supporting documents for each project. In 2021, the ESF audit authority carried 
out  on-the-spot  checks  relating  to  the  2019  and  2020  expenditure  of  ESF  projects  and  the 
2019 financial year of the ESF managing authority. 

ESF in Brussels-Capital Region: Training was given to the team of front-line inspectors and 
the managers of the management and control system of the managing authority (audit, good 
practice, ethics and risk management), organised by BDO (November 2021). The integration 
of  partner  declaration  and  controls  into  a  computerised  management  tool  –  Mon  Actiris 
Partenaires / Mijn Actiris Partners (MAP) was reported with the aim of simplification of the 
monitoring of qualitative and financial data. 

ESF  in  Flanders:  A  referral  to  inspection  services  if  necessary  was  introduced  and  a  web 
application for time recording with built-in checks reported. 

50 

 
 
4.2.2.  Measures  reported  by  the  Department  of  Agriculture  and  Fisheries  as 

well as the Federal Public Finance Service 

The  department  of  Agriculture  and  Fisheries  relaunched  a  newsletter  on  risk  management, 
integrity and the fight against fraud within the Department of Agriculture and Fisheries. 

The  Federal  Public  Service  Finance  (Service  Public  Fédéral  Finances 
/  Federale 
Overheidsdienst  Financien)  reported  the  addition  of  subparagraph  5  to  Article  61(1)  of  the 
VAT  Code  (Code  de  la  taxe  sur  la  valeur  ajoutée  /  Wetboek  van  de  belasting  over  de 
toegevoegde  waarde).  In  accordance  with  which  invoices,  copies  of  invoices  and  other 
documents  held  electronically  by  the  taxable  person  may  be  sent  directly  via  an  electronic 
platform when required by the tax authorities during an inspection. This facilitates checks by 
officials, who are no longer obliged conduct on an on-the-spot visit to retrieve this data. 

4.3.  Estonia: Public Procurement register possibilities and training programmes 

Within  the  framework  of  the  supervision  of  public  procurement  (PP),  in  the  supervision 
inspection reports prepared in 2021, the officials of the Ministry of Finance have informed the 
contracting authorities of the possibility to organize small procurements in the PP register. It 
regards  small  contracts,  which  are  below  the  PP  simple  threshold  in  terms  of  value  and 
therefore are not required by law to be published in the PP register.  

Within  the  PP  supervision  and  PP  training  framework,  the  Ministry  of  Finance  has 
recommended  the  use  of  this  option.  The  measure  will  increase  transparency  and 
controllability in PPs. 

Starting from 2021 the supplementing of the search for contracts in the PP register will make 
it  easier  to  search  in  the  register  for  data  on  procurement  contracts,  including  the  data  on 
breaches of contracts – i.e. transparency increases. There is now the possibility for contracting 
authorities  to  confirm  the  absence  of  conflict  of  interest  in  the  PP  register  -  the  aim  is  to 
simplify the work of the contracting authority and reduce bureaucracy. The PP subpage on the 
Ministry of Finance's website contains the guidelines for procuring audit services published in 
2021. 

Estonia reported, in addition, that it participates together with Latvia and Lithuania in a three-
year  training  program  for  investigators,  prosecutors,  and  judges  dealing  with  financial  and 
economic  crimes.  The  Tax  and  Customs  Board  organized  another  training  on  anti-fraud  - 
CEPOL’s  excise  fraud  training  -  in  cooperation  with  the  Academy  of  Security  Sciences.  It 
took  place  in  Estonia  and  30  officials  from  different  EU  countries  participated.  The  overall 
aim of the training was to enhance the fight against excise fraud by improving the knowledge 
on  the  existing  patterns  in  excise  fraud  in  general,  by  exchanging  good  practices  of  excise 
investigations, and by facilitating the use of financial investigative techniques in excise cases. 
Particular attention was brought to the illegal tobacco trade. 

Furthermore, the Customs Department of Tax and Customs Board started regular follow-up 
analysis  of  X-ray  pictures.  The  focus  of  the  activity  is  to  identify  knowledge  caps  of  X-ray 
operators and find additional suspicious vehicles/goods. Risk mitigating activities are planned 
according to key findings of the analysis. 

4.4. 

Spain:  Procedures  by  the  Management  Authorities  of  the  Shared 
Management Funds in the area of fraud prevention and conflict of interest 

Some  of  the  main  measures  that  have  been  adopted  by  the  Management  Authorities  of  the 
Shared Management Funds during 2021 are highlighted below: 

51 

 
 
  The ERDF Management Authority has established a system for communicating alerts by e-
mail to the Intermediate Bodies, in those cases in which the MA receives information from 
other Intermediate Bodies about cases of fraud that could be of interest to the rest. 

  The  Responsible  Authority  of  the  AMIF  and  Intermediate  Body  of  the  ISF,  has  taken 
measures in the area of conflicts of interest, by means of expanding the people that must 
sign the declaration of no conflict of interest, as well as the description of the procedure to 
be followed when a risk of conflict of interest is detected. This Authority is also working 
on defining an Anti-Fraud Strategy for AMIF and ISF. 

  The Responsible Authority of the ISF and Delegated Authority of the AMIF has developed 

a tool for the self-evaluation of fraud risk. 

  Regarding  agricultural  funds  (EAFG  and  EAFRD),  regulations  on  fraud  and  conflict  of 

interest have been developed and training in this area is provided. 

  The  Management  Authority 

for  European  Territorial  Cooperation  Programs 

is 
implementing  a  system  of  alert  indicators,  common  to  all  programmes.  Among  other 
additional  requirements,  it  has  included  administrative  verifications  on  100%  of  the 
expenses,  the  obligation  of  at  least  one  on-the-spot  check  in  the  life  of  the  project  and  a 
quality control plan that allows verifying the functioning of the control systems. 

4.5.  Latvia 

4.5.1.  Cooperation  with 

the  European  Public  Prosecutor’s  Office  and 

Educational activities 

AFCOS,  EPPO  and  EU  funds  authorities  together  elaborated,  “Methodology  on  reporting 
suspected  fraud  cases  to  the  EPPO”,  which  allowed  EU  funds  administration  authorities  to 
cooperate with the EPPO during investigations and in the framework of initial consultations, 
thus  working  preventively  on  fraud  risk  assessment.  In  addition,  AFCOS,  EPPO,  EU  funds 
authorities  and  law  enforcement  authorities  worked  together  on  the  development  of 
“Methodology on typologies of crimes that can cause damage to the EU's financial interests”. 
The  document  will  provide  an  update  on  red  flags  of  fraud,  which  will  allow  for  a  more 
effective prevention of fraud. 

Educational activities: 

  The  Competition  Council  educated  EU  fund  supervisors  about  compliance  within 

competition law in two educational events in 2021. 

  The State Administration School, in cooperation with the Procurement Monitoring Bureau, 
Ministry  of  Finance  Audit  body,  Corruption  Prevention  and  Combating  Bureau  and  the 
Competition  Council  developed  the  e-learning  training  course  “Conflict  of  Interest  and 
Cartels in Public Procurement”.  

  AFCOS organized trainings for the AFCOS network on the anti-fraud topic and organized 

the conference "Building anti-fraud crowd immunity". 

  The  Corruption  Prevention  and  Combating  Bureau  organized  two  trainings  -  “Financial 
Investigation”  and  “Financial  Analysis”  in  which  national  law  enforcement  and 
prosecution institutions participated. 

  Central  Finance  and  Contracting  Agency  has  conducted  trainings  for  beneficiaries  and 
officials on the issues of conflict of interest, irregularities, fraud prevention and breaches of 
completion regulations. 

52 

 
 
4.5.2.  Other measures 

In 2021, the Prosecutor's Office transferred three criminal cases to the court: 

  Case  on  charges  against  six  persons  for  fraudulent  activities  committed  by  an  organized 
group  by  misleading  EU  funds  authorities  and  illegally  receiving  EUR  4 268 615.44 
(OLAF assisted the national investigation). 

  Case  on  charges  against  three  persons  on  fraudulent  activities,  illegally  receiving  EUR 
238,353.51  from  EU  funds,  as  well  as  the  provision  of  false  information  about  the  final 
beneficiary. 

  Case on charges against one person for attempt to receive the amount of EUR 35 026.78 

from EU funds. 

In  addition,  Latvia  reported  that  the  State  Audit  Office  published  the  audit  report 
“Effectiveness  of  investigations  and  trials  of  the  criminal  offences  in  the  economic  and 
financial  area”.  The  reports  provide  recommendations  to  improve  the  investigation  of 
financial and economic crimes and to reduce the length of criminal proceedings.  

4.6.  Hungary 

4.6.1.  Enhanced  the  cooperation  within  the  National  Tax  and  Customs 
Administration’s  Criminal  Affairs  Directorate  and  updated  training 
course 

The  effectiveness  of  operational  cooperation  within  the  remit  of  the  National  Tax  and 
improved.  Developing 
Customs  Administration’s  Criminal  Affairs  Directorate  was 
communication  and  the  exchange  of  information  so  as  to  improve  the  effectiveness  of 
cooperation between the bodies and authorities involved in performing checks on EU support, 
and  to  that  end  improving  the  effectiveness  of  operational  cooperation  by  developing  the 
evaluation  and  analytical  skills  of  financial  investigators.  In  addition,  Hungary  reported  the 
update of an e-learning curriculum for the training course on fraud recognition and prevention 
to be attended every 3 years by staff working in field of the paying agency of the Hungarian 
State Treasury’s central office and the Government Offices, entitled ‘From stupidity to fraud 
– Anti-fraud refresher training’. 

4.7.  Romania: Approval of the National Strategy against Organised Crime 2021-
2024  and  the  National  Strategy  for  the  recovery  for  criminal  assets  for  the 
period 2021-2025 

The Government Decision No 930/1 September 2021 approved the National Strategy against 
Organised  Crime  2021-2024,  is  a  horizontal,  legislative  and  single  measure.  The  decision 
covers  the  fraud  prevention,  fraud  detection,  research  and  prosecution,  recovery  and 
sanctioning of the anti-fraud cycle. It shall effectively prevent and counter risks, threats and 
vulnerabilities within organised crime. The strategy includes strategic objectives and lines of 
action  aimed  at  strengthening  measures  to  combat  the  phenomenon  by  law  enforcement 
bodies,  as  well  as  preventing  organised  crime  and  making  society  more  resilient  to  this 
scourge.  The  strategy  will  be  implemented  through  an  action  plan  comprising  specific 
activities  and  projects,  and  monitoring  will  be  carried  out  by  a  committee  set  up  for  this 
purpose. 

53 

 
 
 
The adoption of the national strategy for the recovery of criminal assets for the period 2021-
2025  with  the  title,  ‘Crime  is  not  profitable!’  (Government  Decision  No  917  of  25  August 
2021),  which  relates  to  the  area  of  fraud  prevention,  fraud  detection,  investigation  and 
prosecution  as  well  as  recovery  and  sanctioning.  The  responsible  and  sustainable 
identification, administration and exploitation of assets frozen and confiscated during criminal 
proceedings,  aimed  at  preventing  crime  and  reusing  criminal  assets  for  social  purposes  and 
strengthening  institutions  dedicated  to  the  fight  against  high-level  corruption  and  organised 
crime. The Strategy is a catalyst for the efforts and commitment of the Romanian Government 
to  increase  the  national  capacity  to  respond  to  crime,  establishing  an  efficient  recovery 
process  for  recovering  criminal  assets.  The  document  aims  to  effectively  and  fully  identify 
assets linked to criminal offences, optimise the management of frozen and confiscated assets 
and reuse criminal proceeds for social purposes. 

54 

 
 
 
 
5.  CASE STUDIES REPORTED BY MEMBER STATES 

5.1.  Belgium:  Cohesion  policy,  European  Regional  Development  Fund:  Failure 

to publicly advertise a procurement 

The Managing Authority of the ERDF Programme of the Brussels-Capital Region oversees all 
public  contracts  which  are  awarded  as  part  of  expenditure.  The  MA  asks  project  leaders  to 
provide  it  with  the  package  of  documents  related  to  the  award  and  performance  of  such 
contracts, so that the control can be carried out effectively. In the present case, the financed 
project  involved  a  single  item  of  expenditure,  i.e.  insulation  work  on  a  roof  for  energy 
performance in a public building. The project leader decided to entrust an architect with the 
procurement. Given the amount of expense, a publicly advertised call for tenders should have 
been  chosen  while  the  architect  went  on  without  advertising  it.  The  Managing  Authority 
became aware of this misconduct  as soon as the  first  supporting documents  were submitted 
and informed the project owner that such an irregularity was penalised at the rate of 100% in 
accordance with the Decision of the Commission of 14 May 2019.  Consequently, it was up to 
the project owner to find a solution to make the presented expenditure eligible for the subsidy, 
otherwise the grants would be withdrawn.  

In  his  letter,  the  project  owner  renounced  the  subsidy  and  explained  to  the  Managing 
Authority that he had communicated twice to the architect that a procurement procedure must 
be used, once prior to tendering the contract and once in the course of the process. However, 
the architect proceeded without full publicity. As a result, serious suspicions of wrongdoing 
have  arisen  against  the  architect  and  the  project  owner  terminated  his  contract  with  the 
architect due to loss of confidence. In the latest news, legal proceedings against the architect 
have been initiated.   

By  reporting  this  case,  the  Managing  Authority  for  the  ERDF  Programme  of  the  Brussels-
Capital  Region  wishes  to  draw  to  the  European  Commission’s  attention  that  a  significant 
number  of  irregularities  and/or  detected  fraud  has  not  been  reported  to  the  Commission 
because  they  were  detected  at  an  early  stage  by  the  MA;  even  before  they  could  have  an 
impact on the budget of the European Union. Although these cases represent a considerable 
amount of work of the Managing Authorities, unfortunately they are however not taken into 
account when estimating the efficiency of the anti-fraud and anti-corruption system. 

5.2.  Bulgaria:  ESIF  funds  –  misappropriation  of  EU  funds  in  connection  with 

improving the energy efficiency of a micro-enterprise 

Having  been  notified  of  a  suspicion  of  fraud  in  the  use  of  ESIF  funds  in  connection  with 
improving the energy efficiency of a micro-enterprise, a preliminary check was carried out on 
the beneficiary company, its owners and its managers. The check revealed: a lack of any real 
activity,  suspicious  financial  transactions  (significant  loans  received  with  an  unidentified 
origin  of  funds  from  physical  persons),  and  the  conclusion  of  several  successive  special 
pledges with assets provided as collateral which were acquired by financing the project under 
the  operational  programme.  A  competent  authority  then  initiated  a  check.  It  officially 
identified  additional  evidence  in  support  of  the  suspicion  of  illegal  activity:  the  micro-
enterprise was not in operation, the assets acquired under the project were not being used and 
were  in  the  possession  of  other  persons,  the  energy  efficiency  objectives  set  out  in  the 
business  plan  were  not  being  met.  All  the  material  and  case  reports  were  submitted  to  the 
competent Public Prosecutor’s Office. 

55 

 
 
5.3.  Estonia 

5.3.1.  Combined cargo cigarette smuggling 

In February 2021, the Investigation Department of the Tax and Customs Board revealed and 
consequently  terminated  the  activities  of  a  group  consisting  of  six  persons  who  provided 
transportation  services  for  illegal  cigarettes.  Illegal  cigarettes  were  smuggled  in  2020  from 
Latvia  via  Estonia  to  Belgium  and  France  by  combining  different  types  of  cargo  (land  and 
sea). Before loading cigarettes on a trailer in Latvia, cover goods (plastic packages and boxes) 
and  consignment  documents  (CMR)  in  the  name  of  random  companies  were  organized  in 
Estonia.  After  loading  the  cigarettes  in  Latvia,  the  trailer  was  transported  to  the  port  of 
Paldiski in Estonia, then transported by sea to German ports and from there with an Estonian 
truck to a destination in Belgium or France. The group handled more than 18 million illegal 
cigarettes, of which 9.6 million were seized in Estonia and 8.4 million in Germany. 

5.3.2.  Illegal cigarette trading as family income 

In  April  2021,  the  Investigation  Department  of  the  Tax  and  Customs  Board  revealed  and 
terminated the activities of a group of four persons handling  approximately 5 million illegal 
cigarettes in the period from March to April 2021. The cigarettes were delivered to Estonia by 
a  Latvian  driver  transporting  legal  goods.  In  Estonia,  three  members  of  one  family  were 
engaged in the further illegal storage and resale of cigarettes. A total of 1.8 million smuggled 
cigarettes were found in searches following the detention of suspects. 

5.4. 

Ireland: Irish Custom's operational response to the UK's exit from the EU 

The UK’s exit from the EU fundamentally changed the trading environment between Ireland 
and  Great  Britain  and  necessitated  significant  operational  change  and  the  assignment  of 
additional  resources  in  order  to  facilitate  legitimate  trade,  increase  EU  border  protection, 
address  the  heightened  risk  to  the  EU’s  financial  interests  and  help  prevent  and  detect  any 
potential fraud. From 1 January 2021, Revenue ensured that the full trade facilitation regime 
and  appropriate  oversight  and  intervention  regime  for  UK  traffic  in  line  with  the  UCC 
requirements was in place and operational. Between 2018 and 2021, over 800 additional staff 
were sanctioned for customs and frontier management work. This ensured that the necessary 
increased  customs  controls  could  be  carried  out  on  new  third  country  routes  and  increased 
third  country  traffic,  protecting  the  EU  financial  interests  from  smuggling/illicit  trade  and 
organised crime. 

Revenue’s trade facilitation and customs enforcement operating model moved to a 24/7 basis 
in  the  most  impacted  ports  and  airports,  providing  relevant  support  to  facilitate  legitimate 
trade  and  ensuring  that  Ireland  protects  the  integrity  of  the  Single  Market  and  the  Customs 
Union and ensures compliance with the overarching UCC legal framework and other similar 
frameworks. 

In 2021, there was an increase in direct maritime traffic from EU ports to Irish Ports due to 
the new Customs controls in place post Brexit. This resulted in an increase in both the number 
of  ships  and  the  variety  of  routes  available  to  criminal  gangs  to  smuggle  illicit  tobacco 
products into Ireland. Revenue’s trade facilitation and customs enforcement operating model 
move  to  a  24/7  basis  ensured  a  comprehensive  response  to  this  development.  Revenue 
monitors  trends  in  the  illicit  tobacco  trade  on  an  ongoing  basis,  adjusts  its  actions  and 
redeploys its resources in response to new developments or methodologies employed by the 
criminal gangs involved. 

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The results have been significant, in 2020, €273 million in customs duties were collected. In 
2021 this rose to €526 million (of which €215 million was on GB imports). In 2020, Revenue 
processed  1.8  million  customs  declarations.  In  2021,  Ireland  processed  25.4  million 
declarations  (of  which  18.2  million  were  from  the  UK).  Between  2020  and  2021,  the 
deployment  of  additional  frontline  staff  contributed  to  significant  increases  in  detections. 
There was a 26% increase in the number of cigarettes seized and over 400% increase in the 
volume of tobacco seized. In addition, there was a 24% increase in the volume of drugs seized 
in 2021. 

5.5.  Greece:  Participation  of  the  Financial  Police  Directorate  in  Operation 
OPSON  organised  by  EUROPOL  and  INTERPOL,  with  the  support  of 
OLAF 

The  Financial  Police  Directorate  participated  in  the  Operation  OPSON  organised  by 
EUROPOL and INTERPOL, with the support of OLAF, to tackle food fraud in general and, 
more specifically, the trafficking of counterfeit/fake and low-quality food and beverages.  

The individual objectives of the operation are: 

  To protect public health; 

  To prevent trafficking in counterfeit/fake food and beverages; 

  To  identify  and  dismantle  groups  involved  in  organised  crime  and  trading  in  counterfeit 

and low-quality food; 

  To strengthen international cooperation; 

  To strengthen cooperation at national level between law enforcement authorities and food 

inspection services; 

  To strengthen cooperation with private partners from the food and beverages industry; and 

  To  strengthen  cooperation  with  EUROPOL,  INTERPOL  and  other 

international 

organisations. 

The  Hellenic  Police,  and  in  particular  the  Financial  Police  Directorate,  participated  in 
Operation  OPSON  X  and  in  the  individual  targeted  actions  relating  to  wine  and  alcoholic 
beverages, as well as honey and products made from honey. 

Operation  OPSON  X  (December  2020  to  June  2021)  involved  law  enforcement  authorities 
from  72  countries  around  the  world  (EU  Member  States,  other  European  countries  and 
countries  in  Africa,  America,  Asia  and  the  Middle  East),  with  the  support  of  the  European 
Anti-Fraud Office  (OLAF), the European Commission’s Directorate-General  for Health and 
Food Safety (DG SANTE) and the European Union Intellectual Property Office (EUIPO). As 
a result of OPSON X, more than 68 000 checks were carried out, 42 criminal organisations 
were  dismantled,  663  people  were  arrested  and  more  than  15  000  tonnes  of  illegal  and 
dangerous goods worth approximately EUR 53 million were seized. 

5.6.  Croatia:  Customs  case:  Detection  of  cigarette  smuggling  at  the  external 

border of the EU 

On  October  12,  2021,  Regional  Customs  Office  Osijek  submitted  a  criminal  charge  to  the 
Municipal State Attorney’s Office against a citizen of the Republic of Serbia for the criminal 
offence of Avoiding Customs Surveillance Measures under Article 257 of the Criminal Code. 
In  the  relevant  case,  at  the  entrance  to  the  Republic  of  Croatia,  a  truck  driver  attempted  to 

57 

 
 
smuggle  490 200  pieces  of  different  types  of  cigarettes:  Karelias,  Marlboro,  Lucky  Strike, 
Winston,  Davidoff.  The  cigarettes  were  found  hidden  in  a  semi-trailer  in  the  cargo  area, 
among goods in bulk: wheat. The goods were confiscated and the truck with the semi-trailer 
were  confiscated  too  as  a  measure  to  secure  the  incurred  excise  debt.  Excise  duty  in  the 
amount of 467 719.60 HRK was collected. 

5.7. 

Italy 

5.7.1.  Guardia  di  Finanza  -  Customs  and  VAT  fraud  on  imports  of  healthcare 

equipment 

The Guardia di Finanza’s Special Unit for Revenue carried out a risk assessment of conduct 
which was potentially harmful to the EU’s financial interests, focusing on imports of tungsten 
electrodes, which are subject to a specific customs procedure if they originate in China. This 
assessment  led  to  the  launch  of  an  investigation  by  the  Provincial  Headquarters  in  Genoa, 
which revealed that the goods in question had not been produced in Thailand (duty of 6%) but 
rather originated in China (duty of 63.5%). This led to the avoidance of EUR 245 850 in sums 
due (EUR 201 518 in duties and EUR 44 332 in VAT). The respective company was reported 
to the EPPO, they agreed with the findings put forward and obtained an order for preventive 
seizure  from  the  Judge  for  Preliminary  Investigations  at  the  Court  of  Genoa  with  a  view  to 
directly confiscating the proceeds of the offence. 

5.7.2.  Guardia di Finanza - Cohesion, EAFRD: corruption, extortion and fraud 

relating to public funds 

The  Bari  unit  of  the  financial  and  economic  police  (PEF),  part  of  the  Guardia  di  Finanza, 
carried  out  an  investigation  which  revealed  that  an  agronomist,  hired  by  an  agricultural 
holding to promote a wooded area as a tourist/leisure destination, was asked for money by a 
local public official in order to join the 2014-2020 RDP for the Apulia region, co-financed by 
the EU. The investigation revealed that a business committee comprising local public officials 
and businesspeople in the forestry sector was unlawfully obtaining aid in exchange for bribes. 
In  the  course  of  the  investigation:  26  funding  applications  were  checked,  revealing  that 
EUR 2 763 345.30 was obtained unlawfully; 19 individuals were referred to the local MA and 
four  legal  persons  were  flagged  as  having  administrative  responsibility  for  the  entity. 
Proposals were made to carry out preventive seizures equating to around EUR 4.7 million and 
the funds unlawfully received were reported to the Court of Auditors as lost public revenue. 

5.7.3.  Customs and Monopolies Agency (ADM) - EREBO Project 

As part of the EREBO project, the Customs and Monopolies Agency monitored shipments of 
goods from Greece to Italy under customs procedure 42. This revealed that ‘missing traders’ 
were  making  fraudulent  use  of  the  customs  procedure  and  thus  causing  losses  to  the  public 
purse in terms of lost own resources and VAT. 

5.8.  Latvia: Prohibited agreement (cartel) on the conditions for participation in 
public and private procurements in Latvia between ten largest construction 
companies 

On July 30, 2021, the Competition Council adopted a decision about a long-term prohibited 
agreement  on  the  conditions  of  participation  in  public  and  private  procurements  in  Latvia 
between  ten  construction  companies,  where  54%  of  the  negotiated  procurements  were 
procurements  with  EU  co-funding.  Procurements  also  varied  in  size,  with  the  smallest 
contract  amount  being  less  than  one  million  euro  and  the  largest  over  EUR  100  million.  A 

58 

 
 
total  of  EUR 16 652 027.40  was  imposed  in  fines  on  ten  companies  for  breaching  the 
Competition Law. 

The  Competition  Council  is  a  member  of  the  AFCOS  network.  Its  purpose  is  to  ensure  the 
possibility  to  every  market  participant  to  perform  its  economic  activities  in  free  and  fair 
competition  environment  as  well  as  to  promote  competition  development  in  all  sectors  of 
national  economy  for  the  benefit  of  all  society.  The  Competition  Council  has  a  right  to 
conduct investigations with regard to the violations of the Competition Law and impose legal 
obligations and fines. 

The  relevant  case  began  when  the  Competition  Council  received  information  and  materials 
from  the  Corruption  Prevention  and  Combating  Bureau  (KNAB),  which  indicated  the 
existence  of  a  cartel  (prohibited  agreement  between  market  participants).  The  transcripts  of 
the audio  recordings  contained information  that in  the period at  least  from  16 January 2015 
until 7 June 2018 twelve meetings of the representatives of the largest construction companies 
in  Latvia  took  place  in  two  different  meeting  places.  From  the  negotiations  during  the 
meeting, as well as from other materials received from the KNAB, it could be concluded that 
the participants of the meeting, representing the largest construction companies in Latvia, for 
the  purpose  of  implementing  the  prohibited  agreement  divided  themselves  into  two  groups. 
During  the  meetings,  the  participants,  speaking  about  the  objects  of  public  and  private 
procurements, conceptually allocated them to one of the groups established by the participants 
or to a specific participant. 

Participants  agreed  on  the  distribution  of  different  types  of  procurements  (public,  private, 
including  EU  co-financed  procurements),  trying  to  split  them  up  so  that  the  total  amounts 
between the two groups would be as similar as possible and, inter alia: 

The participation in the procurement has been discussed or, conversely, non-participation in 
the procurement - formal participation of any participant(s) (“cover offers”) in the respective 
Procurement. 

The potential winner or the participant who would be entitled to the specific procurement was 
selected. During the meeting, participants discussed more than 90 procurements (of which the 
Competition  Council  was  able  to  identify  around  70  procurements):  They  included 
construction,  reconstruction,  development  of  technical  projects  of  educational  institutions, 
shopping  centers,  medical  institutions,  sports  grounds,  stadiums,  law  enforcement  agencies, 
radioactive waste and storage facilities, infrastructure objects. 

5.9.  Lithuania: One man's trash is another man's business 

In  2021,  the  Financial  Crime  Investigation  Service  under  the  Ministry  of  the  Republic  of 
Lithuania launched a pre-trial investigation on the basis of criminal intelligence on the group 
of potentially interconnected natural persons, representing legal entities actually managed by 
them, with a view to illegally obtaining the European Union support funds. They concealed 
the actual suppliers and the price of the equipment to be procured, as well as the fact that the 
equipment  was  not  new  but  used.  The  value  of  the  project  was  EUR 1 995 682  and  the 
amount of support allocated to the project was EUR 898 057. 

The investigation established that the company’s manager, knowing that the company did not 
have  funds  to  purchase  the  plastic  washing  and  recycling  equipment  provided  for  in  the 
project,  acquired, by means of personal  and business  relations, used equipment  and through 
the  companies  controlled  by  related  persons.  They  unjustifiably  increased  the  price  of  the 
purchased equipment in order to avoid the obligation to contribute to the implementation of 
the project with own funds. During the pre-trial investigation, it was identified that the plastic 

59 

 
 
washing  equipment  was  purchased  from  a  company  registered  in  Lithuania.  The  plastic 
recycling  equipment  consisting  of  several  parts  was  purchased  from  Italy-  and  Malaysia-
registered  companies  through  an  Estonia-registered  company  which  was  actually  controlled 
by a Lithuanian citizen. 

Once it has been established that this was not the only project implemented by the company 
who  is  subject  to  this  investigation,  the  processing  of  payment  claims  and  the  payment  of 
support funds for other projects implemented by the company was suspended in cooperation 
with  the  Lithuanian  Business  Support  Agency,  and  additional  checks  of  these  projects  have 
been carried out. 

The representatives of the beneficiary and the equipment supplier have been delivered notices 
of suspicion under this pre-trial investigation. 

5.10.  Romania:  EAGF  funds:  Fraud  of  EUR  850 000  -  European  agricultural 

funds allocated to tomato production 

DNA  (National  Anticorruption  Directorate)  cooperated,  through  a  joint  investigation  team, 
with the Public Prosecutor’s Office in Enna (Italy), OLAF and EUROJUST. On 6 December 
they  indicted  five  natural  persons  (Italian  citizens)  and  five  legal  persons  (commercial 
companies set up in RO by the individual defendants) for committing the offences of using or 
presenting  in  bad  faith  false,  inaccurate  or  incomplete  documents  or  statements,  if  the  act 
resulted  in  the  wrongful  acquisition  of  EU  funds,  the  use  in  bad  faith  of  assets  or  credit 
enjoyed by the company, for a purpose contrary to its interests or for their own benefit, or in 
order to benefit another company in which they had direct or indirect interests, it falls under 
the formation of an organised criminal group and the commission of forgeries. 

they 

fraudulently  obtained  non-repayable  agricultural 

The five Italian citizens set up in Romania five companies through which in 2017-2018, using 
false  documents, 
funds  of 
RON 3 902 207  (approximately  EUR 850 000)  granted  by  APIA  for  the  cultivation  and 
marketing of tomatoes. The fraudulent actions were committed in an organised, coordinated 
and  identical  manner  by  the  five  defendants  for  all  five  companies.  The  companies  leased 
land,  which  they  did  not  even  visit  and  which  was  unsuitable  for  tomato  cultivation.  They 
submitted false documents stating that they met the conditions for obtaining funds for tomato 
cultivation (quality and compliance documents, false invoices attesting to purchases of tomato 
seeds,  false  documents  attesting  to  the  marketing  of  tomato  production,  false  documents 
concerning transport of tomatoes).  

In reality however, the defendants did not purchase the quantity of seeds they indicated, did 
not  grow  anything  and  did  not  sell  any  tomatoes.  The  evidence  gathered  showed  that  the 
companies  in  question  had  no  activity,  no  employees,  prior  to  obtaining  the  financing  they 
had a turnover of RON 0, had no properties and no records in the 2017 annual accounts, and 
no  payments  or  receipts  from  other  companies  were  identified.  It  was  clear  that  their  sole 
purpose  was  to  fraudulently  obtain  EU  funds.  The  money  obtained  through  the  financing 
received  from  APIA  was  circulated  from  the  subsidy  accounts  opened  in  the  names  of  the 
companies,  to  their  current  accounts  and  then  to  the  current  accounts  of  the  accused 
individuals. Subsequently, these amounts were withdrawn in cash through an ATM in  Italy, 
were then used for payments made by the defendants through POS to various traders, or the 
payments were made to third persons. Precautionary seizures were ordered in order to recover 
the damages, and certificates in accordance with Regulation (EU) 2018/1805 were sent with 
the purpose of seizure to the Italian prosecutors, who are investigating the above-mentioned 
accused persons in Italy. 

60