COMMISSION STAFF WORKING DOCUMENT Annual overview with information on the results of the Union anti-fraud programme in 2022 Accompanying the document REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 34th Annual Report on the protection of the European Union's financial interests and the fight against fraud - 2022
Date: 2023-07-27
Institutions: European Anti-Fraud Office, European Commission
Subjects: EU Member State, EU budget, EU strategy, activity report, digitisation, fight against crime, financial control, fraud, fraud against the EU, innovation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 27.7.2023  SWD(2023) 276 final  COMMISSION STAFF WORKING DOCUMENT Annual overview with information on the results of the Union anti-fraud programme in 2022 Accompanying the document REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 34th Annual Report on the protection of the European Union's financial interests and the fight against fraud - 2022 {COM(2023) 464 final} - {SWD(2023) 272 final} - {SWD(2023) 273 final} - {SWD(2023) 274 final} - {SWD(2023) 275 final}  
 
 
TABLE OF CONTENTS 

1 

Introduction ....................................................................................................................... 2 

1.1 

1.2 

1.3 

Context .................................................................................................................................... 2 

Implementation methodology .................................................................................................. 3 

Purpose and scope of this overview ........................................................................................ 4 

2  UAFP budget implementation in 2022 ............................................................................ 4 

Activities  to  prevent  and  combat  fraud,  corruption  and  any  other  illegal  activities 
2.1 
undermining the financial interests of the EU (as in the former Hercule III programme) .................. 6 

2.1.1 

Grants ...............................................................................................................................9 

a) 

b) 

Call for proposals for technical assistance ....................................................................10 

Call for proposals for training, conferences, staff exchanges and studies .....................11 

2.1.2 

Procurement ....................................................................................................................12 

a) 

i. 

ii. 

iii. 

b) 

c) 

IT support: databases, IT tools and analyses of samples from tobacco seizures ...........12 

Databases ........................................................................................................................12 

Development of specific IT tools for data analysis with the JRC ..................................13 

Tobacco analyses (TOBLAB) ........................................................................................14 

Procured conferences .....................................................................................................15 

Procured digital forensics and analysts training ...........................................................15 

3  UAFP (Hercule component) - achievements in 2022 ................................................... 16 

3.1 
Examples of technical assistance projects funded under the Hercule III programme 
and finalised in 2022 ......................................................................................................................... 17 

3.2 
Examples of training projects funded under the Hercule III programme and finalised 
in 2022 ............................................................................................................................................... 19 

3.3 

Examples of procured access to external databases .............................................................. 23 

4 

IMS – implementation in 2022 ....................................................................................... 25 

4.1  Main activities ....................................................................................................................... 25 

4.2  What does the AWP involve? ................................................................................................ 26 

4.3  Maintenance and development .............................................................................................. 26 

4.4 

Studies ................................................................................................................................... 26 

5  AFIS – implementation in 2022 ..................................................................................... 26 

6  Communication ............................................................................................................... 27 

6.1 

6.2 

Informing potential applicants ............................................................................................... 27 

Dissemination of results ........................................................................................................ 27 

6.3  Workshop for grant beneficiaries .......................................................................................... 28 

6.4 

Visibility of EU funding ........................................................................................................ 28 

7  Feedback from programme participants ...................................................................... 28 

8  Conclusions and way forward ........................................................................................ 29 

0 

 
 
1 

 
 
 
 
 
1 

Introduction 

The  fight  against  fraud  to  protect  the  EU’s  financial  interests  is  a  shared  responsibility  for 
Member  States  and  the  EU.  It  is  thus  in  the  interest  of  the  EU,  and  of  EU  taxpayers  more 
generally,  that  national  and  regional  authorities  are  sufficiently  equipped  to  carry  out  this 
important mission. This is why the EU has supported national anti-fraud capacities for 16 years 
with the three successive Hercule programmes.   

1.1 

Context 

The European Parliament and the Council adopted Regulation (EU) 2021/785 setting up the 
UAFP on 29 April 20211. This legal act became applicable retroactively as of 1 January 2021.  

The UAFP combines three different, previously separated activities, but at its core, it builds on 
the success of the Hercule III programme. The UAFP provides a single framework, bringing 
together: 

(i) 
(ii) 

(iii) 

the Hercule funding part;  
the  financing  of  the  Anti-Fraud  Information  System  (AFIS,  supporting  Member 
States in providing mutual assistance in customs and agricultural matters); and  
the  Irregularity  Management  System  (IMS,  for  the  reporting  of  irregularities, 
including  fraud,  in  cases  related  to  the  shared-management  funds  and  the  pre-
accession-assistance funds2).  

This single framework increases synergies between its strands and economises on resources. 
For example, it provides financial flexibility to reallocate funding within the programme. 

An  annual  Commission  implementing  decision  sets  out  the  financing  of  the  UAFP  and  the 
annual  work  programme  (AWP).  This  single  legal  act  provides  for  funding  for  all  eligible 
actions supported by the programme, and for the financing of the AFIS and the IMS. 

The UAFP is based on Articles 33 and 325 of the Treaty on the Functioning of the European 
Union (TFEU). It is set up for a period of 7 years, from 2021 to 2027, in line with the MFF laid 
down in Council Regulation (EU, Euratom) 2020/20933.  

The UAFP pursues two general objectives. First, it aims to protect the EU’s financial interests. 
Second,  it  aims  to  support  mutual  assistance  between  the  administrative  authorities  of  the 
Member States and cooperation between these authorities and the Commission to ensure that 
the law on customs and agricultural matters is correctly applied. 

The programme pursues three specific objectives: 

1.  to  prevent  and  combat  fraud,  corruption  and  any  other  illegal  activities  affecting  the 

financial interests of the EU; 

2.  to  support  the  reporting  of  irregularities,  including  fraud,  with  regard  to  the  shared 
management funds and the pre-accession assistance funds of the EU budget; and  

1 OJ L 172, 17.5.2021, p. 110-122. Link:  (http://data.europa.eu/eli/reg/2021/785/oj). 
2 See Chapter 4 for more details, please see Chapter 4 of the present SWD. 
3  Council  Regulation  (EU,  Euratom)  2020/2093  of  17  December  2020  laying  down  the  multiannual  financial 

framework for the years 2021 to 2027 (OJ L 433433I, 22.12.2020, p. 11). 

2 

 
 
                                                           
3.  to provide tools for information exchange and support for operational activities in the 

field of mutual administrative assistance in customs and agricultural matters. 

To implement the UAFP, the EU has allocated EUR 181 207 000 in current prices for the period 
from 2021 to 2027, as shown in Graph 1. 

Graph 1 – Budget allocation 

2021-2027 budget allocation

IMS - €7 m

AFIS - €60 m

Hercule - €114,2 
m

Hercule - €114,2 m

AFIS - €60 m

IMS - €7 m

1.2 

Implementation methodology 

The first component of the programme provides the Member States with targeted assistance in 
achieving their obligations to protect the EU’s financial interests. This component will support 
the purchase of specialised anti-fraud equipment and tools, specific trainings as well as targeted 
conferences and studies. 

The Commission implements this component by:  

1.  awarding grants following calls for proposals;  
2.  concluding public-procurement contracts following calls for tenders; 
3.  entering into administrative arrangements with the Commission’s Joint Research Centre 

(JRC); 

4.  reimbursing costs incurred by representatives from eligible countries who participate in 

training and operational activities; and 

5.  offering  targeted  support  to  relevant  international  organisations  actively  helping  to 

protect the EU’s financial interests. 

Under the second component,  the Commission maintains the  IMS and makes it available to 
Member States to facilitate their compliance with the obligation (laid down in various sectorial 
pieces of legislation) to report detected irregularities.  

The third component consists of (i) the operation and maintenance of the AFIS platform for the 
exchange of mutual-assistance information; and (ii) supported activities, such as joint customs 
operations, courses, and preparatory or evaluation meetings for operational action. 

In practice, the programme is implemented under direct management. The European Anti-Fraud 
Office (OLAF) is the lead service for programme implementation. 

3 

 
 
 
The UAFP Regulation identifies four categories of eligible entities: 

1.  public authorities that can help achieve a UAFP objective and are established:  

i) 
in a Member State or an overseas country or territory associated with the UAFP; 
ii)  in a third country associated with the UAFP under the conditions specified in Article 

4 of the UAFP Regulation; or, 

iii) in a third country not associated with the UAFP under the conditions specified in 

Article 10(3) of the UAFP Regulation. 

2.  research  and  educational  institutes  and  non-profit  making  entities  that  can  help  to 
achieve the objectives of the UAFP and have been established and operating for at least 
1 year:  
i) 
ii)  in a third country associated with the UAFP under the conditions specified in Article 

in a Member State; 

4 of the UAFP Regulation; or  

iii)  in a third country not associated with the UAFP under the conditions specified in 

Article 10(3) of the UAFP Regulation. 

3.  any legal entity created under Union law; or, 
4.  any international organisation. 

1.3 

Purpose and scope of this overview 

Article 12(3) of Regulation (EU) 2021/785 obliges the Commission to report annually on the 
performance of the programme to the European Parliament and to the Council as part of its 
annual report on the protection of the EU’s financial interests – fight against fraud. Article 12(3) 
also  stipulates  that  when  discussing  the  UAFP,  the  European  Parliament  may  make 
recommendations for the AWP, and that the Commission must duly take these into account. 

To this end, this overview covers: (i) information on actions for which financial commitments 
were made under the 2022 Financing Decision and AWP4, adopted on 25 February 2022; and 
(ii) the results of  actions finalised in  2022  but  for which financial commitments  were made 
under the Hercule III and the Union Anti-fraud programmes in previous years.  

The  overview  also  contains  information  on  AFIS  and  IMS  activities  for  which  financial 
commitments were made under the same 2022 AWP.  

1  UAFP budget implementation in 2022 

To implement the UAFP in 2022, the budgetary authority had allocated EUR 24.04 million in 
commitment appropriations and EUR 2.54 million in payment appropriations. The programme 
is financed under item 03.03 of the EU budget, as shown in Table 1 (split by year). 

Table 1: Financial programming in 2021-2027 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

(in EUR) 

Total 

24,055,021 

24,371,021  24,852,023  25,508,023  26,353,026  27,404,026  28,678,028 

Programme 
total 
181,221,168 

C(2022) 1139 final of 25 February 2022 

4 

 
 
 
 
 
 
 
                                                           
Table 2 shows the commitments made under the available budget for 2022, broken down by 
the programme’s three components. 

Table 2: Available budget and commitments made in 2022 

TYPES OF ELIGIBLE ACTIONS (2021) 

BUDGET 
(EUR) 

COMMITTED 
(EUR) 

COMMITTED 
(%) 

COMPONENT 1: PROTECTION OF THE EU’S FINANCIAL INTERESTS 

TECHNICAL ASSISTANCE 

Grants: technical assistance 

Grants 

9 500 000 

9 578 008 

IT databases 

Procurement 

715 000 

IT tools and tobacco analysis  

Procurement 

760 000 

707 360 

733 673 

ANTI-FRAUD TRAINING 

Grants: anti-fraud training 

Grants 

1 100 000 

1 076 935 

Procured conferences  

Procurement 

1 350 000 

1 165 845 

Digital forensics and analyst training  

Procurement 

1 800 000 

1 799 543 

FCTC5 

Grants 

200 034 

06 

101% 

98.9% 

96.5%  

97.9% 

86.4% 

100% 

0% 

TOTAL COMPONENT 1  

15 425 034 

15 175 2607  

98.4% 

COMPONENT 2: AFIS PLATFORM 

IT studies, development and maintenance 

Procurement 

3 200 000 

3 754 627,17 

Production services 

Procurement 

2 600 000 

1 749 767,60 

Technical  assistance,  training,  coordination 
and quality-control services 

Acquisition,  maintenance  and  updating  of 
software  and  hardware,  and  related  IT 
services 
Funds  co-delegated 
the  Directorate-
General  for  Taxation  and  Customs  Union 
(DG TAXUD) 
Contingency 

to 

Procurement 

722 000 

231 235,18 

Procurement 

1 189 721 

968 770,61 

81% 

Procurement 

239 246 

239 246,27 

100% 

1 065 508,32 

TOTAL COMPONENT 2 

8 009 153 

8 009 153 

100% 

COMPONENT 3: IMS TOOL 

Hardware and software 

Procurement 

0 

0 

Development and maintenance 

Procurement 

934 325 

907 344,95 

0% 

97,1% 

5      Financial  support  to  the  Secretariat  of  the  World  Health  Organization  Framework  Convention  on  Tobacco 
Control (FCTC), in its functions related to the Protocol to Eliminate Illicit Trade in Tobacco Products, and to 
other activities organised by the Secretariat in connection with the fight against illicit trade in tobacco products. 
6    Following internal consultations, DG BUDG allocated to a co-delegated budget line the necessary funds to pay 

the FCTC annual contribution.  

7    EUR 113 896 were transferred to DG COMM an DG DIGIT for communication and IT-support annual fees. 
5 

117% 

67.3% 

32% 

 
 
 
 
 
  
  
  
  
  
  
  
  
  
                                                           
Production services 

Support and training 

Contingency 

TOTAL COMPONENT 3 
GRAND TOTAL 

Procurement 

Procurement 

0 

0 

934 325 

0 

0 

26 980,05 

934 325 

24 368 999 

24 118 738 

0% 

0% 

100% 

99% 

2.1 

Activities to prevent and combat fraud, corruption and any other illegal activities 
undermining  the  financial  interests  of  the  EU  (as  in  the  former  Hercule  III 
programme)  

In 2022, the UAFP’s second year of implementation, the available commitment appropriations 
for the programme’s first strand (formerly Hercule) were used to: (i) finance granted projects; 
and  (ii)  conclude  specific  contracts  (procurement)  and  administrative  arrangements  for 
providing  access  to  commercial  databases,  specialised  IT  tools  and  specific  training  and 
conference events, in line with the activities included in the adopted AWP for 20228.  

The  commitment  amounts  earmarked  for  the  2022  granting  cycle  (approximately  EUR 10.8 
million) were implemented by signing contracts  for the awarded  grant  files and paying pre-
financing.  

Following  a  successful  publication  and  evaluation  of  the  2022  ‘technical  assistance  call  for 
proposals’, a small unused amount earmarked for anti-fraud training in the 2022 budget (around 
0.5% of the annual budget) has been transferred to this specific call, where a reserve list had 
been established.  

Payments under the grant agreements and under some of the procurement contracts signed in 
2022 will be reported at a later stage than the present report, since these payments will only be 
made in the course of 2023 and in the following years. 

Graph 2: Breakdown of the UAFP’s (Hercule component) planned budget and achieved 
commitments in 2022 by type of financial support (grants and procurement) 

8  Commission Implementing Decision, C(2022) 1139 final of 25.02.2022. 

6 

 
 
 
 
 
 
                                                           
Graph 3 provides a breakdown of the planned budget and commitments for 2022 by type of 
action. Technical assistance actions under Regulation (EU) 2021/785 encompass: (i) technical 
assistance for grant activities; and (ii) IT support (databases and IT tools).  

Training actions include: (i) grant activities under calls for proposals for training, conferences, 
staff exchanges and studies; and (ii) procured conferences and specialised training. 

7 

 
 
 
 
 
Graph 3: UAFP (Hercule component) budget and commitments in 2022 of eligible actions 

8 

 
 
 
 
 
 
1.1.1  Grants 

Grants are direct financial contributions to finance an action intended to help achieve an EU 
policy objective. The overall UAFP budget allocated to grants in 2022 was EUR 10.6 million. 
Following  calls  for  proposals  inviting  applicants  to  submit  proposals  for  actions  that  help 
achieve the programme’s objectives, grants are evaluated and awarded. The beneficiary of a 
grant  becomes the legal  and economic owner of  the goods  or services purchased with  grant 
financing.  

In March 2022, the Commission published two calls for proposals on its Funding and Tenders 
Portal.  

The two 2022 calls covered the following topics:  

1.  technical assistance, with an indicative budget of EUR 9.5 million; and 
2.  training,  conferences,  staff  exchanges  and  studies,  with  an  indicative  budget  of 

EUR 1.1 million.  

The deadline to submit applications was 24 May 2022 for Technical Assistance (TA) and 14 
June 2022 for Training (TRAI). The Commission received a total of 65 applications originating 
from 14 Member States. First, each application was assessed on its eligibility or on a possible 
exclusion.  Then,  a  dedicated  evaluation  committee  with  Commission  expert  staff  members 
assessed the content of each application. The committee evaluated the following four award 
criteria:  

1.  conformity with the objectives of the UAFP; 
2.  quality of the proposal; 
3.  value for money; and 
4.  added value for the protection of the EU’s financial interests. 

The evaluation process was finalised end 2022 and all applicants were informed of its outcome 
by the end of December 2022.   

Graph 4 gives an overview of the total value and number of grants for technical assistance and 
training awarded in 2022, by Member State. The graph shows that grants have been awarded to 
applicants from 11 Member States.  

9 

 
 
 
 
Graph 4: UAFP (Hercule component) commitments (in EUR) and number of grants in 
2022 by Member State and by activity sector 

a) 

Call for proposals for technical assistance 

The 2022 budget for technical assistance grants was EUR 9.5 million. It was available to fund 
actions proposed by national and regional authorities for the following types of activities: 

1. 

2. 

3. 

4. 

purchasing  and  maintaining  investigation  and  surveillance  tools  and  methods 
used in the fight against irregularities, fraud and corruption perpetrated against 
the financial interests of the EU, including specialised training needed to operate 
the investigation tools; 
purchasing  digital-forensics  hardware  including  equipment  and  software, 
mobile forensic tools and computer forensic collaborative systems used in the 
fight against (fraudulent) irregularities, fraud and corruption detrimental to the 
EU’s financial interests;  
purchasing  data-analytics  technologies  and  data  including  the  acquisition  and 
maintenance  of:  (i)  commercial  specialised  databases;  (ii)  data-analysis 
platforms  capable  of  running  analyses  in  big-data  environments,  risk  and 
predictive  analyses,  and  data-mining  tools;  and  (iii)  systems  supported  by 
artificial intelligence used in the fight against irregularities, fraudulent activities 
and corruption detrimental to the EU’s financial interests; and 
purchasing  equipment  for  the  detection  of  illicit  trade9  to  strengthen 
beneficiaries’  operational  and  technical  capacity  to  detect  smuggled  and 

9  OLAF, in close cooperation with DG TAXUD, ensured that there was no overlap with projects submitted for 

support under the new Customs Control Equipment Instrument (CCEI). 

10 

 
 
 
 
                                                           
counterfeited goods, including cigarettes and tobacco, imported into the EU with 
the intention of evading value added tax, customs duties and/or excise taxes.  

By the deadline of 24 May 2022, the Commission received 46 applications from 13 Member 
States. The total (cost) of the proposed actions was EUR 22.9 million and the requested funding 
(UAFP financial support) amounted to EUR 18.6 million (or more than double the available 
budget).  Following  the  evaluation  committee’s  recommendation,  the  authorising  officer 
decided to award grants for 24 actions and to place 11 proposals on a reserve list (see Table 1 
in Annex I).  

All applicants were informed of the outcome of the evaluation procedure in November 2022. 
The overall amount approved for technical assistance grants was EUR 9.4 million. One more 
grant was awarded fom the reserve list, following the availability of a small unused amount 
initially  earmarked  for  procured  activities.  Grants  were  awarded  for  the  purchase  of 
investigation equipment (including forensics equipment), data-analysis systems, IT tools and 
detection equipment. The UAFP grants financed 80% of the eligible costs of the actions.  

Table 1 in Annex I provides an overview of the beneficiaries, project titles, grant amounts, and 
co-financing rates. 

To  best  describe  the  implementation  of  technical  assistance  grants  in  2022,  a  selection  of 
examples of finalised projects is presented in Chapter 3. 

b) 

Call for proposals for training, conferences, staff exchanges and studies 

The  UAFP  provides  grants  to  beneficiaries  for  organising  targeted  specialised  trainings, 
conferences and staff exchanges. These activities aim to strengthen cross-border cooperation 
and networking activities between experts and to facilitate the exchange of best practices on 
protecting the financial interests of the EU.  

The following four types of activities were proposed for funding, with an indicative budget of 
EUR 1.1 million: 

1. 

2. 

3. 

specialised training sessions to improve investigation and data-analysis abilities 
by  acquiring  new  skills  and  knowledge  of  specialised  methodologies  and 
techniques; 
conferences,  workshops  and  seminars  to:  (i)  facilitate  the  exchange  of 
information,  experience  and  best  practices,  including  in  the  field  of  data 
analysis; (ii) create networks and improve coordination between Member States, 
candidate  countries,  other  third  countries,  EU  institutions  and  international 
organisations;  (iii)  facilitate  multidisciplinary  cooperation  between  anti-fraud 
practitioners and academics on protecting the EU’s financial interests, including 
support to associations for European criminal law and for the protection of the 
EU’s financial interests; and (iv) raise the awareness of the judiciary and other 
legal professionals of this matter; 
staff  exchanges  between  national  and  regional  administrations  (including 
candidate  and  neighbouring  countries)  to  help  further  develop,  improve  and 
update staff’s competences in protecting the EU’s financial interests; and 

11 

 
 
4. 

developing comparative law studies and organising activities to raise awareness 
among the judiciary and other branches of the legal profession on protecting the 
EU’s  financial  interests,  including  the  dissemination  of  relevant  scientific 
knowledge through periodical publications. 

The  call  received  19  applications  from  eight  Member  States.  The  total  amount  of  requested 
grants was EUR 1.3 million.  The number of applications is higher compared to the previous 
year  marked  by  the  COVID-19  pandemic  circumstances.  Two  applicants  withdrawn  their 
proposals.  

Twelve  applications  were  selected  for  an  award  under  this  call,  for  an  overall  amount  of 
approximately  EUR 1  million,  mostly  receiving  a  co-financing  rate  of  80%  of  the  eligible 
costs10.  

Grants  were  awarded  for,  amongst  others:  (i)  organizing  conferences  and  trainings  for 
enhancing the capacities of police and customs authorities in data analysis, investigations of 
frauds  against  the  EU  budget,  fighting  cigarette  smuggling,  the  cooperation  between  the 
national  authorities  and  the  EPPO,  preventing  and  combatting  corruption  in  public 
procurement; (ii) developing tools to prevent fraud in the use of EU funds; and (iii) carrying 
out studies on  combatting cyber-VAT fraud and customs fraud, gathering electronic evidence 
for administrative proceedings and OLAF investigations, corporate criminal liability.  

Table 4 in  gives an overview of the awarded grants and the corresponding co-financing rates. 

1.1.2  Procurement 

About 30% of the 2022 budget allocated to the first component of the UAFP (EUR 4 625 000) 
was allocated to fund activities by concluding procurement contracts linked to the protection of 
the EU’s financial interests. 

In 2022, the Commission concluded specific contracts under existing framework contracts for 
technical assistance support and training activities. The purchased equipment, tools and services 
were made available to UAFP beneficiaries (mainly Member State authorities). 

a) 

IT support: databases, IT tools and analyses of samples from tobacco seizures 

i. Databases 

In  2022,  the  overall  amount  committed  to  procured  contracts  was  EUR 707 360.  The 
programme provides funds for the procurement of subscriptions to commercial databases, on 
behalf  of  law  enforcement  authorities  in  Member  States,  to  support  operations  and 
investigations, in particular in the area of protecting the EU’s financial interests.  

The  Commission  procures  and  manages  the  access  to  these  databases  enabling  substantial 
economies of scale and a common data framework. Relevant staff are trained to ensure optimal 

10  The maximum co-financing rate is 80% for the training grants, but in exceptional and duly justified cases, the 
Commission may award a grant up to 90% of eligible costs. One project was awarded a 90% co-financing rate. 
See Table 4 of Annex I. 

12 

 
 
                                                           
usage. OLAF staff also uses these databases for operational activities jointly undertaken with 
their Member State partners and for their own investigations11.  

In 2022, the programme provided Member States with access to commercial databases, such as 
worldwide trade statistics, detailed company information and global vessel  movements.  The 
databases were highly used by customs and other law-enforcement authorities, supporting both 
investigations and risk analyses. Table 3 in Annex I gives an overview of the contracts awarded 
in 2022.  

ii. Development of specific IT tools for data analysis with the JRC 

In 2022, OLAF and the JRC continued working together under the administrative arrangement 
for Customs Anti-Fraud Enabling technologies (CAFET)12.  

CAFET is part of a wider effort to provide knowledge to and facilitate the work of Member 
States’ customs services to use data and analytical approaches effectively and efficiently in their 
anti-fraud  activities.  In  line  with  the  objectives  of  the  Union  Anti-Fraud  Programme,  the 
ultimate beneficiaries of this project are customs authorities in the Member States.   In 2022, 
the UAFP allocated EUR 505 200 under the CAFET umbrella. 

Work package 1: Automated Monitoring Tool (AMT)  

By  linking  a  subset  of  Eurostat’s  COMEXT  database  with  information  from  customs 
declarations  and  the  Commission’s  tariff  database  (TARIC),  the  AMT  algorithm  identifies 
patterns and long-term trends in EU imports. The AMT provides estimates of ‘cleaned average’ 
prices by product code, from a given exporting country into the EU and, in some instances, 
these  estimates  can  be  further  broken  down  by  Member  State.  Any  import  that  deviates 
substantially from these long-term trends is flagged as anomalous.   AMT results are shared 
with users in interactive, read-only displays (dashboards) providing the results of predefined 
queries on the COMEXT-subset.  

The  number  of  AMT  users  reached  almost  3 500  in  2022,  with  2 000  of  them  regularly 
retrieving information on long-term trends and further analyses of potential undervaluation.   

In 2022, new research started into a possible new price estimate, using 12 months of COMEXT 
data. Work also began to investigate the potential of using surveillance data to calculate a price 
estimate.  

Work package 2: Container-movement analytics  

Container-movement analytics and analyses of potential origin fraud (ConTraffic) have been 
further consolidated and developed. In the first eight months of 2022, ConTraffic averaged 65 
user logins.  Most of the users were from Belgium, Spain, European Commission, Finland, The 
Netherlands, Ireland and Italy.  

11   The use of databases made by OLAF staff is paid from the administrative budget of the Commission.    
12   Originally funded by the Hercule III programme, the initial AA was signed at the end of 2017 between OLAF 
and  the  JRC  to  provide  ‘scientific  and  technical  support  in  advancing  the  EU’s  customs  anti-fraud  data-
analytics capacity’. The current AA runs from 2021 to 2023 and consists of five work packages. 

13 

 
 
                                                           
Checks  on  potential  origin  detected  that  about  2%  of  the  analysed  goods/items  had  a 
mismatching  origin.  Based  on  these  mismatches,  OLAF  identified  118  possible  signals  of 
anomalies and communicated these to Member States’ customs services.  

In 2022 work concentrated on supporting the transfer of this analysis from ConTraffic where it 
has developed on a pilot basis (involving 7 MS in 2022), into the AFIS environment.  

Work package 3: Tobacco track and trace analytics (T&T)  

Preliminary  work  has  explored  the  potential  of  the  T&T  data  to  contribute  to  anti-fraud 
activities. 

Work package 4: e-Commerce   

Data availability remains a problem in 2022, and no analysis was undertaken under this work 
package.  

Work package 5: Other analytical tools and exploratory work   

This work package brings together activities related to the development of smaller analytical 
tools or new analyses of potential interest, based on experience from previous AAs, interaction 
with Member States and OLAF operational activities.   

In 2022, research continued into the possibility to analyse and compare the textual descriptions 
of imports with their declared commodity codes, to identify potential cases of misdescription 
fraud.  

Outreach 

CAFET is intended to support the analytical activities of Member State authorities and OLAF 
to combat fraud. It continues work on well-known and to some extent already researched fraud-
control  problems,  such  as  undervaluation  (via  AMT)  and  misdescription  of  origin  (via 
container-movement analysis). However, it has also started new research into problems such as 
illicit tobacco trade and product misdescription fraud, which have been identified as priorities 
by Member States.  

Opportunities for communication and network building with Member States remained limited 
during 2022. Plans were made to provide a series of webinars in the first half of 2023, starting 
to re-engage with MS analysts and customs officers on the more mature projects (AMT and 
Container-movement analytics). As in previous years, progress updates were provided at the 
regular meetings of the Expert Group on Mutual Assistance in Customs Matters. 

iii. Tobacco analyses (TOBLAB) 

In order to help Member States in their efforts to combat the illicit trade in tobacco products, 
OLAF takes the view that Member States’ authorities should have access to independent state-
of-the-art specialised testing facilities of tobacco products for investigative purposes.   

For that purpose, the Commission’s Joint Research Centre (JRC) in Geel (Belgium) set up in 
2016 a laboratory for the analysis of tobacco products, TOBLAB,   financed by the previous 
Hercule III programme.  

14 

 
 
 
A  close  cooperation  between  TOBLAB  and  Member  States’  customs  laboratories  and  law 
enforcement authorities is considered as leading to the most efficient and cost-effective use of 
the testing facilities needed.  

Member  States  and  OLAF  can  submit  requests  for  analysis  of  tobacco  products  using  a 
dedicated  IT  application  (ToSMA)  administered  by  OLAF  on  the  Anti-Fraud  Information 
System (AFIS) platform. In the period from 13 July 2021 to 12 July 2022, the JRC processed 
80 requests from 10 Member States for analysis of seized cigarettes and raw/fine-cut tobacco 
samples. It was possible to draw connections between cigarettes seized in various places in the 
EU at various moments (42 samples could be connected to previous seizures).  

The  JRC  maintains  a  repository  of  commercially  available  cigarettes  purchased  at  licensed 
tobacconists across the world. The repository now contains more than 1100 tobacco products 
from more than 70 countries. 

The annual Administrative Agreement (AA) with the JRC in Geel was renewed in 2022 with 
programme funding amounting to EUR 226 208. 

b) 

Procured conferences 

The  programme  also  finances  high-level  conferences  and  training  activities  focused  on  the 
protection of the EU’s financial interests organised by the Commission. Eight high-level events 
took place, financed by the 2022 programme budget. The overall budget available for procured 
conferences was EUR 1.35 million.  

Table 5 in Annex I provides an overview of the events that took place under the 2022 budget. 

c) 

Procured digital forensics and analysts training  

The digital forensics and analysts training (DFAT), organised by OLAF aims to strengthen law-
enforcement  agencies’  ability 
including  cigarette  smuggling  and 
counterfeiting. It provides improved detection skills to extract and use data from digital devices.  

to  combat  fraud, 

This annual training helped create a network of certified digital-forensics specialists, starting 
back in 2007. 

Investigations related to EU funds have become more complex, with more data that need to be 
processed. This has led to a growing need to train digital analysts. To address this need, courses 
for analysts were added to the original digital-forensics training (DFT) since 2018. The aim is 
to improve digital forensics investigations by ensuring that data are processed in a way that 
strengthens the quality, accuracy and efficiency of investigations related to EU funds. 

Financed by the 2022 budget, 2 training sessions (one physical in October 2022 and one virtual 
in  April-May  2023)  were  organised,  with  68  experienced  trainers  delivering  a  total  of  29 
courses  for  524  participants.  The  various  subjects  proposed  covered  the  most  requested  by 
Member  State  authorities,  such  as  advanced  ‘Windows’  forensics,  open-source  intelligence, 
operational analysis, etc. The 2022 budget committed for these trainings was EUR 1 799 543.  

15 

 
 
 
 
 
 
 
2  UAFP (Hercule component) - achievements in 2022 

Since the first grants for the UAFP were awarded only in March 2022 (due to the late adoption 
of the programme’s legal basis), few tangible results are already available. Consequently, this 
section provides an overview of the main results achieved by beneficiaries implementing grants 
awarded under Hercule III and of the outcomes of the procured projects financed by the UAFP 
and finalised in 2022.  

Beneficiaries report on the outcomes of grant projects in the final technical report they submit 
with  their  final  payment  requests.  Final  technical  reports  also  describe  issues  encountered 
during the implementation of the action, such as delays or staff changes. The reports set out 
how these issues were resolved and list possible impacts on the outcome of a project.  

Beneficiaries  of  UAFP/Hercule  technical  assistance  grants  are  requested  to  submit  a  final 
implementation  questionnaire  one  year  after  the  grant  contract’s  closing  date.  This 
questionnaire  contains  information  on  the  results  achieved  by  using  the  equipment  and  the 
beneficiary’s  assessment  of  the  equipment’s  contribution  to  achieving  the  programme’s 
objectives.  

The reported results, largely on Hercule III technical assistance, illustrate how the purchased 
technical  equipment,  such  as  detection  tools,  enabled  the  beneficiaries  to  seize  substantial 
amounts of smuggled cigarettes, counterfeit goods and tobacco products. National authorities 
reported that equipment to support investigations, such as communication equipment, cameras, 
IT tools and forensic soft- and hardware, facilitated the lawful gathering of evidence during 
operations supporting investigations aimed at protecting the EU’s revenues, expenditures and 
assets. 

Beneficiaries of grants for training activities (conferences, seminars and training sessions) also 
carried out participant surveys to measure the relevance, quality and overall user satisfaction of 
the event. The findings of these surveys are included in the final technical report submitted at 
the end of the action. 

Training activities finalised in 2022 concerned a wide range of disciplines and topics, such as: 
(i)  the integration of academics and practitioners’ knowledge of corruption risks by means of 
studies,  training  material  and  toolkit  for  practitioners;  (ii)  increase  of  the  effectiveness  of 
combatting organised fraud, especially cigarette smuggling  and counterfeiting in  the area of 
Schengen border through the exchange of knowledge and experience between specialized law 
enforcement  agencies;  (iii)   methodologies  for  detecting  and  investigating  environmental 
crimes  detrimental  to  the  EU’s  financial  interests;  and  (iv)  strengthening  cooperation  and 
control models in the field of prevention of fraud undermining the EU’s own resources.  

Most  of  the  training  projects  were  targeted  at  representatives  of  government  departments 
responsible  for  managing  EU  funds  and  law-enforcement  agencies  (police,  customs). 
Nevertheless, the participation of students, professionals, non-governmental organisations and 
educational institutions was also noteworthy.  

A total of 450 persons attended anti-fraud trainings and conferences and OLAF received 279 
event evaluation forms.  

16 

 
 
The  feedback  received  was  overwhelmingly  positive,  with  about  90%  of  the  participants 
assessing the events as excellent or good.  

3.1 

Examples  of  technical  assistance  projects  funded  under  the  Hercule  III 
programme and finalised in 2022 

A grant to the Financial Administration of the Republic of Slovenia for the purchase of an 
x-ray scanner, reinforced the inspections performed in the Slovenian maritime cargo port, and 
improved the quality of the evidence gathered during operations and investigations related to 
suspicions or allegations of fraud, corruption and other illegal activities against the EU financial 
interests.  The  illegal  activities  targeted  were:  illicit  drugs,  infringes  of  intellectual  property 
rights, evade of custom duties or other levies.  In the first year of use of the new equipment two 
international investigations started as a result of seizures discovered with the scanner.  Among 
other items, seizures of 584 kg of cocaine, 216 kg of heroine, 1 655 kg smuggled commercial 
goods, 570 710 items of goods infringing intellectual property of an estimated value of over 20 
million EUR were reported. 

Forensic Science Division of the Greek Ministry of Citizen Protection received, through the 
proposal submitted by European and Development Programmes Management Agency, a grant 
in  order  to  extend  the  capacity  of  digital  evidence  examination  through  the  procurement  of 
specialized  hardware  and  forensic  software  and  relevant  trainings  of  police  personnel.  The 
digital  forensic  data  acquisition  and  analysis  system  is  designed  to  handle  cases  with  large 
amounts  of  data.  The  equipment  was  assigned  to  members  of  the  department  of  Digital 
Evidence Examination and has been operational since July 2020. The cases involved concerned 
counterfeit  products,  banking  fraud  and  fraud  against  national  expenditures.  The  damages 
linked to these cases are estimated to be more than EUR 24 million. 

The capacity of the National Revenue Agency of Bulgaria to perform computer investigations 
improved significantly through the purchase of specialised IT-forensic equipment and software. 
The  acquired  equipment  and  software  increased  the  quality  of  the  evidence  collected  in 
electronic form, used for detection of tax evasion. The delivered equipment has been used to 
secure and analyse evidence in electronic form in the course of 28 proceedings during the first 
12 months of use. As a result of the closed proceedings there have been established evaded 
taxes by the taxable persons in the total amount of over EUR 370 000, with approximately EUR 
330 000 in pending proceedings. As a result of the proceedings, two notifications to the public 
prosecutor’s office were sent, for the purpose of initiating criminal proceedings. 

The  National  Customs  Board  of  Latvia  (SRS)  modernised  its  Automatic  Number  Plate 
Recognition System, and secured its expansion at customs control points and border crossing 
points  by  replacing  obsolete  equipment  with  new  equipment.  The  equipment  increases  the 
detection capabilities of the SRS, ensuring more targeted controls and increased efficiency. It 
is expected that the quality and accuracy of the data from the improved system will improve 
from 48% to 95%. Likewise, the system now allows for an increased capacity of data exchange. 
The ANPRS of Latvia has been interlinked with similar systems in Lithuania and Estonia, and 
plans  to  include  Poland  are  ongoing.  This  modernisation  contributes  to  the  improvement  of 

17 

 
 
 
 
 
customs controls in all three Baltic States. Access by the State Border Guard and State Police 
has  now  been  enabled.  Sharing  of  data  with  other  law  enforcement  agencies  contributed  to 
better border management and to increased protection of the EU financial interests, the fight 
against smuggling, in particular of cigarette and tobacco smuggling.  

The Italian Ministry of Economy and Finance purchased equipment to create an IT platform, 
Integrated National Anti-Fraud Platform to collect data from certified national sources and from 
European sources through a central system. This data collection by only public administrations 
has the goal of supporting national and transnational investigations. The tool was put online in 
2021 and collects data from the chamber of commerce, court of auditors, the revenue agency, 
Ministry  of  Economy  and  Finance  and  the  European  Commission,  composing  a  sort  of 
‘registry’ of EU funds. A three-day training took place for more than 100 representatives from 
Italian Regions and Ministries as well as delegates from BG, LV, LT, RO and SL attended. 

The Public Service of Federal Finances, Belgium (SPF Finances, BE) have procured a high-
performance  backscatter  X-Ray  Scanner  to  deploy  at  the  Port  of  Antwerp.  The  aim  of  the 
purchase is the prevention of cigarette and tobacco smuggling by increasing detection of illegal 
transport  of  goods.  Belgium  has  traditionally  been  a  transit  country  used  by  criminal 
organisations  in  the  movement  of  smuggled  cigarettes.  A  reinforcement  of  the  detection 
capacity at the port should enable more efficient and targeted customs inspections. The number 
of detections is expected to rise as of its first year of deployment.   

The Customs and Excise Department (DAIIEE) (ES), dependent on the State Agency for 
Tax  Administration  (AEAT)  carried  out  a  project  entitled  TOBAX,  the  purchase  of 
handheld backscattering X-ray devices. This purchase of equipment has become an essential 
part of the new inspection model that the AEAT is implementing in Barcelona and Algeciras. 
New  non-intrusive  inspection  protocols  have  been  defined  and  the  operating  personnel 
involved  have  been  familiarized  with  the  use  of  the  newly  acquired  Tobacco  detection 
instruments. TOBAX has a very fast and discreet deployment, versatility and mobility, the 
deterrent effect in inspections playing a decisive role. TOBAX also represents an important 
milestone in the integration and interoperability of the mobile detection devices. Laying the 
foundations for future integration of mobile equipment. 

The  National  Anticorruption  Directorate  of  Romania  purchased  specialised  technical 
equipment  designed for forensic and surveillance activities. The equipment purchased in order 
to  increase the capacity  in  the field of  covert mobile surveillance (dissimulated audio-video 
recorders,  transmitters  and  the  two  adapted  cars)  enables  the  technical  teams  to  carry  out 
surveillance  of  targets.  42  workstations  were  equipped  with  software  applications  having 
special technical features, connected in a closed internal network with no link to the internet, in 
accordance with the applicable national legal framework and requirements.  These will enhance 
the IT connection between the Central Structure of the DNA and the 14 Territorial Units and, 

18 

 
 
 
 
 
 
respectively, between the DNA and the National Communications Interception Centre, in this 
specific  field,  allowing  the  DNA  investigators  to  directly  enforce  the  technical  surveillance 
warrants. 

Provincial  Police  Headquartes  in  Gdansk  has  reported  that  the  Pomeranian  Police  of 
Poland  have  purchased  two  cars  equipped  with  night  vision  and  thermal  binoculars, 
flashlights and endoscopes. One car is especially equipped with camouflaged technical means 
for  observation.  Also,  the  service  has  procured  a  raman  spectrometer  and  contraband 
detection  scanner  to  assist  with  a  more  efficient  identification  of  substances  including 
tobacco.  The beneficiary informs that both cars with all equipment were used for observation 
and suspects identification in several cases related to VAT fraud and connected with criminal 
group  dealing  with  tax  crimes.  Police  officers  expect  to  collect  evidence  more  efficiently, 
which  will  automatically  result  in  an  increase  in  the  number  of  operational  activities  and 
investigations  carried out  by them. Since the police also  perform tasks  commissionned by 
other  services,  such  as  the  Public  Prosecutor's  Office,  the  Border  Guard  or  the  Customs 
Service, their cooperation will be more fruitful, bringing even more tangible benefits to the 
protection of Union interests. 

3.2 

Examples  of  training  projects  funded  under  the  Hercule  III  programme  and 
finalised in 2022  

An overview of the training events finalised in 2022 (for which grants had been awarded under 
the  Hercule  III  programme)  is  given  in  Annex  I,  Tables  6  (Training,  conferences  and  staff 
exchange) and 7 (Legal training and studies). 

Examples of projects for training and conferences that ended and were reported on in 2022: 

The  Hungarian  National  Institute  of  Criminology  (OKRI)  implemented  the  project 
entitled 'Corruption risk, risk of corruption? Distinguishing criteria between petty and high-
ranking corruption' - CRITCOR from January 2021 to March 2022. The project intended to 
contribute to preventing and repressing corruption in the EU Member States. Experts from 
Portugal, Germany,  Italy, the Netherlands, UK, Poland, the Czech Republic and Romania 
participated in the project to deliver training based on case studies in EU Member States to 
legal  practitioners  dealing  with  crimes  of  corruption.  The  project  aimed  to  make  the 
knowledge  and  integrated  analysis  of  domestic  and  foreign  good  practices  available  to 
professionals who can provide meaningful assistance in the effective prosecution, detection 
and finding of adequate criminal law instruments for corruption offenses. OKRI organized 
successful workshops, training sessions and the final conference with a broad perspective, in 
terms of knowledge and participants also. The results of the project including studies, training 
material  and 
the  project  website 
for  practitioners  are  available  on 
toolkit 
(https://critcor.okri.hu/). 

As a main conclusion, it can be drawn that the topic of corruption is very complex, and though 
in some aspects, it differs from country to country, the main features of the phenomenon have 
very much in common, so it is worth analysing it on international level. On the other hand, it 
can  also  be  stated  that  the  indicators  of  the  petty  and  high-ranking  corruption  and  the 

19 

 
 
 
 
distinctive points of them are far from evident. As the certain legislation differs from country 
to country, it is difficult to find fully common points, because the language of law and the 
language of criminology are not the same. Whilst law thinks in certain legislation points and 
pre-described  sanctions,  criminology  as  a  science  will  always  determine  problems  as 
“phenomena”.   

The  project  brought  together  a  network  of  academic  experts  and  law  enforcement 
practitioners to exchange experiences and good practices of prevention of corruption and to 
critically  analyse  the  various  experiences  and  practices  using  the  existing  theories.  The 
project  may  also  stimulate  more  interdisciplinary  and  innovative  research,  and  more 
evidence-based and socially oriented corruption prevention. The added value of CRITCOR 
is  the  integration  of  academics  and  practitioners’  knowledge  as  well  as  the  exchange  and 
integration of knowledge and expertise from various European countries and in various legal 
contexts. In the long term, the outcome of the training and the toolkit could strengthen the 
proactivity  of  the  practitioners,  therefore,  police  officers  and  prosecutors  would  be  more 
effective in investigating corruption cases. 

The  SAFE  Foundation  (https://www.safe-europe.eu)  in  Italy  implemented  the  project 
RUNNER - ‘dRone UNit Network against Environmental cRime’. Environmental crimes 
are  widely  recognized  among  the  most  profitable  forms  of  transnational  crime,  with  a 
monetary  value  estimated  at  EUR  18-25  billion  per  year,  most  likely  the  fourth  largest 
criminal  area  after  drugs,  counterfeits  and  human  trafficking.  These  crimes  are  typically 
conducted by large, organized crime groups that operate globally with the assistance of legal 
business  structures  and  within  an  environment  characterized  by  corruption  and  money 
laundering.  Illicit  waste  trafficking  (IWT)  represents  an  increasingly  threatening  crime  to 
citizens' well-being and the financial interests of the European Union alike. In this context, 
the  RUNNER  workshop  that  took  place  in  March  2022  promoted  the  networking  and 
encouraged  the  exchange  of  information  between  local  and  national  Law  Enforcement 
Agencies  (LEAs),  practitioners  and  technology  companies  in  the  effort  to  scale-up 
investigative  methodologies  against  environmental  offenders  also  through  the  use  of 
technological tools (Unmanned Aerial Vehicles, Artificial Intelligence and others) to support 
data gathering and analysis. 

To maximise the audience and bring the workshop discussion to a more institutional level, 
the  RUNNER  workshop  has  been  jointly  organised  with  the  EU  funded  project  OPFA-
WASTE (funded under the ISF programme) bringing together speakers both from the public 
and private sector for the three-day workshop.  

In parallel, a joint effort from both projects allowed for the drafting of Operational Guidelines 
targeting LEAs and practitioners, to better present best practices for investigation on IWT 
cases. The workshop itself provided excellent information and networking for all individuals 
who  took  part  in  the  event,  which  gave  better  knowledge  on  how  to  tackle  the  growing 
problem of illicit waste trafficking and represented an outstanding arena to discuss the draft 
Operational Guidelines and collect feedbacks for their finalisation. 

20 

 
 
 
 
The Regional Police Headquarters in Lublin (Poland) carried out the project ‘Safe Europe 
-  together  against  fraud  on  the  external  border  of  the  EU’.  The  general  objective  of  the 
project was to increase the effectiveness of combating organized frauds, especially cigarette 
smuggling and counterfeiting around Schengen border through the exchange of knowledge 
and experience between specialized law enforcement agencies from Poland, Romania and 
Ukraine  and  through  improving  the  abilities  in  investigations  on  smuggling  and 
counterfeiting tobacco products. 

The  main  event  was  a  six-day  seminar  in  Poland  on  combating  cigarette  smuggling  and 
counterfeiting.  The  seminar  took  place  in  September  2021,  and  was  attended  by  40 
representatives of police, border guards and customs services involved in combating cigarette 
smuggling and counterfeiting in Poland, Romania, and Ukraine.  

In the short-term perspective, the project allowed its participants to exchange best practices, 
learn solutions and working methods, and to enrich their professional knowledge, which will 
facilitate their investigations. A long-lasting and effective cooperation between the project 
participants  is  developed.  In  the  long-term  perspective,  the  prevention  activities  and 
investigations regarding the phenomenon of smuggling and counterfeiting of cigarettes will 
be more effective, more criminals will be arrested, more illegal cigarettes factories will be 
dismantled  in  the EU external  border and  finally the financial interests of the EU will be 
better protected. 

Examples of projects for legal training and studies that ended and were reported on in 2022: 

The University of Giessen in Germany carried out a legal research study within the project 
FRAUDCOM.EU  –  ‘EU  anti-fraud  laws.  A  commentary.  Article  by  article’.  The  project 
aimed to write a detailed large-scale commentary for the three main sources of EU anti-fraud 
secondary  law:  the  PIF  Directive,  the  OLAF  Regulation  and  the  investigative  procedural 
parts (Articles 26-33) of the EPPO Regulation13.  

The  purpose  of  this  commentary  is  to  provide  a  comprehensive  explanation  of  the  three 
secondary legislation acts concerned. To this end, the relevant case law of the courts (above 
all  the  ECJ)  has  been  systematically  evaluated.  A  further  objective  was  the  review  and 
utilisation of the large body of literature that has been published in the field of combating 
fraud in the EU in recent decades. 

The commentary provides an in-depth explanation of the individual legal provisions of the 
EU secondary law and includes on overview of the national regulations in the EU Member 

13   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. 
Regulation (EU, EURATOM) No 883/2013 of the European Parliament and of the Council of 11 September 
2013  concerning  investigations  conducted  by  the  European  Anti-Fraud  Office  (OLAF)  and  repealing 
Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the  Council  and  Council  Regulation 
(Euratom) No 1074/1999. 
Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment of the European Public Prosecutor’s Office (‘the EPPO’). 

21 

 
 
 
                                                           
States and the UK. In addition, the commentary also provides the reader with very in-depth 
insights into the respective subject matter. 

The commentary will significantly improve the protection of the financial interests of the EU, 
because due to its thorough and systematic presentation of EU anti-fraud law, it makes the 
application of the law considerably easier and also provides important impetus for the further 
development  of  this  area  of  law.  As  far  as  the  application  of  the  law  is  concerned,  the 
commentary will be a useful tool for practitioners in this field as an everyday, tangible work: 
prosecutors,  investigators,  defence  lawyers,  authorities  and  courts.  As  far  as  the  further 
development  of  the  law  is  concerned,  the  commentary,  due  to  its  profound  systematic 
analysis, brings significant added value, because the commentary not only tries to answer all 
questions about secondary law, but also because it provides suggestions for improving the 
law in this area. 

The commentary will be published by a professional publisher as a hardcopy and as an e-
book (www.fraudcom.eu) in 2023. The e-book will be available in libraries free of charge. 

VIRTEU (‘VAT fraud: Interdisciplinary Research on Tax crimes in the European Union’) 
was a legal research project conducted by the Coventry University in the United Kingdom 
from April 2020 to June 2022. It aimed at exploring the interconnections between tax crimes 
and corruption to unravel the intimate relationships that exist between fraudulent and corrupt 
practices in the area of taxation with a focus on VAT fraud, which poses a direct threat to the 
European Union's financial interests. The project comprised both an interdisciplinary and a 
comparative approach with focus on Bulgaria, Denmark, Greece, Italy, the Netherlands, and 
the United Kingdom.  

The project aimed at identifying both institutional and sectoral vulnerabilities. Furthermore, 
corrupt  practices  are  characterized  by  obscured  and  secretive  conduct;  this  represents  a 
problem  when  attempting  to  expose  the  inner  workings  of  criminality.  The  research  also 
focused on the crucial role played by whistleblowers in detecting and unveiling these forms 
of conduct, as well as on the necessity of implementing effective measures to protect, award, 
and empower whistleblowers.  

The  outcomes  of  the  project  have  provided  original  perspectives  on  the  interconnections 
between tax crimes and corruption, to demonstrate the critical role whistleblowers play in 
unveiling such forms  of  conduct,  and in  facilitating the strengthening of law enforcement 
bodies and the general awareness of the public through a wide range of accessible resources 
and recommendations that have been developed as a result of the project.  

VIRTEU was successfully concluded with an online final international conference. A series 
of recommendations for law enforcement officials in the form of an e-technical paper were 
disseminated. The results are  available on the project’s website  (https://www.virteu.com/) 
and  the  Corporate  Crime  Observatory,  which  will  serve  as  a  long-term  repository  for  the 
project  research  outcomes  (www.corporatecrime.co.uk/virteu).  In  addition,  the  research 
findings  have  led  to  a  special  issue  journal  entitled  “Tax  Evasion,  Corruption  and  the 
Distortion  of  Justice”  published  in  the  Duke  University’s  journal  Law  and  Contemporary 
Problems in open access (https://scholarship.law.duke.edu/lcp/vol85/iss4/). A publication of 

22 

 
 
 
a book entitled "Compliance, avoidance, and evasion in taxation: The role of professional 
enablers" is forthcoming based on the VIRTEU project outcomes. 

The University of Perugia in Italy conducted the legal research project DRAMP (Diversion, 
Restorative and Mediation Procedures in PIF crimes). The comparative legal study provides 
a compendium of information about diversion and dispute resolution measures alternative to 
criminal  procedures  (ADR)  that  are  applicable  in  the  Member  States  in  cases  of  fraud 
offences, specifically offences affecting the financial interests of the EU (the so called “PIF 
crimes”) falling within the competence of the EPPO14.  

The study analysed the different national legislative solutions and which types of simplified 
procedures set forth in national legal systems are applicable in cases of PIF crimes. Relevant 
national  rules  on  alternative  dispute  settlement  procedures  and  diversion  of  21  European 
States  were  published  on  the  project’s  website  (www.dramp.eu).  Furthermore,  national 
reports  on  the  application  of  alternative  procedures  in  17  national  legal  systems  were 
elaborated and published. An international conference took place in April 2022.  

The outcomes of the project contribute to the efficient functioning of the EPPO and foster 
the implementation of Article 40 of the EPPO Regulation, by giving a compendium on the 
alternative  procedures  of  Member  States.  The  study  can  enhance  effectiveness  of 
investigation and develop a cost effective approach that envisages swifter and more efficient 
solutions in certain cases of financial crimes, with the recovery of the amounts defrauded to 
the EU budget.  

3.3 

Examples of procured access to external databases   

In 2022, the Commission procured access to commercial databases for use by law-enforcement 
authorities  of  the  Member  States.  Databases  containing  trade  information,  company  data  or 
vessel  movements  provide  essential  operational  information  for  autonomous  or  joint 
investigations carried out by Member States with OLAF. These databases also provide input 
for risk analyses and intelligence used by customs authorities to target checks. 

Member-State customs services use a commercial database of worldwide trade statistics.  
The database is used primarily to find indications that goods that are subject to anti-dumping 
or  countervailing  measures  may  have  been  transhipped  in  a  third  country  by  replacing  the 
container, the exporter and the country of origin of the goods.  

The  data  downloaded  monthly  from  the  database  feeds  into  an  online  tool.  It  includes  the 
quantities and values of certain goods imported to a Member State from non-EU countries. 
In this way, the database can support investigations into transhipment, evasion of anti-dumping 
or countervailing duties, misdescription of country of origin, exporter or container swapping, 
and undervaluation.  

14 The DRAMP project took the start from the consideration that Regulation 2017/1939 implementing enhanced 
cooperation on the establishment of the European Public Prosecutor Office (EPPO Regulation) makes a specific 
reference to ‘simplified prosecution procedures’ which the  European Delegated Prosecutor may propose to the 
competent Permanent Chamber as long as this is ‘in accordance with the conditions provided for in national law’, 
as stated in Article 40 and in Recital 82 of the EPPO Regulation. 

23 

 
 
 
 
                                                           
One Member State reported using the database reports as an indicative and comparable index 
mainly to identify undervaluation fraud involving goods.  
Another Member State feeds information from this database into its domestic risk-analysis tool 
to  assist  customs  officers  dealing  with  customs  declarations  in  the  initial  assessment  of  the 
accuracy of these documents, i.e. whether the goods appearing on customs declarations could 
be undervalued. 

Member State customs authorities use a database on vessel information and movements in 
combination  with  other  databases,  to  support  risk  analysis  and  intelligence  related  to 
worldwide  commercialvessel  operations.  It  is  regularly  used  to  check  the  actual  routes  of 
vessels to cross-verify the origin of the goods in containers, for instance when fraud in the 
form of evasion of anti-dumping and/or countervailing duties is detected.  

The database also contains ownership information of a vessel.  
The  database  is  also  used  in  the  customs-clearance  phase  to  detect  potentially  suspicious 
cases of import transactions. Moreover, it is regularly used to monitor vessels transporting 
cargo containers directed to the EU customs territory to help identify risky shipments (e.g. 
related to the smuggling of tobacco products) and to set corresponding risk profiles. 
In  2021,  use  of  the  above  database  helped  ensure  vessels’  compliance  with  applicable 
legislation. Even though it is not directly linked to the programme’s objectives, the database 
also played part in seizures of around 1.7 tonnes of cocaine and 20 tonnes of cannabis (with 
a value of around EUR 400 million).  

A database with information on companies is considered an important tool in investigations 
carried out by Member States’ customs authorities related to fraud undermining the financial 
interests of the EU.   

One  particularly  useful  characteristic  of  this  database  is  that  it  enables  Member  State 
authorities to create risk profiles and to verify certain information on companies, company 
structures and beneficiary owners, also against other sources of data/information. They may 
trace  companies  and  gather  intelligence  to  support  relevant  customs  investigations  of 
particular interest.  
For example, in 2022, one Member State identified a suspicious case of caviar import worth 
around  EUR 2.3  million  by  cross-checking  the  links  between  domestic  and  foreign 
companies.    
The database was also used to determine the customs debt on suspicious import consignments 
using a specific customs procedure (CP 42). This procedure allows importers to obtain a VAT 
import  exemption  when  goods  are  imported  from  outside  the  EU  into  a  Member  State. 
However, this can be misused to evade customs duties and VAT by subsequently transporting 
the goods to  another Member State. The database was also  instrumental in  detecting fake 
exports from the EU to a certain third-country company.   

24 

 
 
 
 
 
3 

IMS – implementation in 2022 

4.1 

Main activities  

To protect the EU’s financial interests, EU law (see below) requires Member States managing 
EU spending under shared management and countries benefiting from pre-accession assistance 
to notify the Commission of any irregularities (including suspected and proven fraud) detected 
in areas where the EU provides financial support.  

To facilitate the reporting of irregularities, the IMS has been developed and put at the disposal 
of the Member States and other beneficiary countries. This dedicated electronic system is being 
used by 35 countries.  

Member  States,  candidate  countries  and  other  non-EU  countries  have  set  up  a  hierarchical 
reporting structure with multiple levels of responsibility. Around 700 reporting organisations, 
covering over 3 000 IMS users, are responsible for the timely reporting of irregularities.  

The reporting workflow includes multiple hierarchical levels and various roles within the same 
level  to  ensure  that  several  quality  checks  are  performed  before  the  reports  are  sent  to  the 
Commission. 

Reporting authorities have responsibilities in one or more of the following fields: 

FIELD 

EU FUND 

Agriculture 

Asylum 

Cohesion 

Fisheries 

European Agricultural Guarantee Fund (EAGF), European Agricultural Fund 
for  Rural  Development  (EAFRD)  ,  European  Agricultural  Guarantee  and 
Guidance Fund – Guidance Section (GUID) 

Asylum,  Migration  and  Integration  Fund  (AMIF),  Internal  Security  Fund 
(ISF) 

Cohesion  Fund  (CF),  European  Globalisation  Adjustment  Fund  (EGF), 
European  Regional  Development  Fund  (ERDF),  European  Social  Fund 
(ESF), Youth Employment Initiative (YEI) 

European  Fisheries  Fund  (EFF),  European  Maritime  and  Fisheries  Fund 
(EMFF), Financial Instrument on Fisheries Guidance (FIFG) 

Most deprived 

Fund for European Aid to the Most Deprived (FEAD) 

Neighbourhood 

Cross-border Cooperation – European Neighbourhood Policy (CBC-ENP) 

Pre-accession 

Recovery, 
Resilience 

Instrument for  Structural  Policies for Pre-Accession, Poland and  Hungary: 
Assistance for Restructuring their Economies, Rural Development, Regional 
Development,  Special  Accession  Programme  for  Agriculture  and  Rural 
Development,  Transition  Facility,  Turkish  Instrument  for  Pre-Accession 
Assistance, and others 

Recovery and Resilience Facility (RRF) 

Reporting authorities provide information on: 

  who committed the irregularity/fraud (persons involved); 

25 

 
 
 
 

 

the support measure such as fund, programme, project, budget line; 

the financial impact (expenditure and irregular/fraudulent amount); 

  how the irregularity/fraud was committed; 

  when the irregularity/fraud was committed; 

  where the irregularity/fraud was committed; 

  how the irregularity/fraud was detected; and 

  what administrative, judicial or penal follow-up sanctions were imposed. 

4.2 

What does the AWP involve? 

The 2022 AWP has a budget of EUR 934 325 dedicated to maintenance, IT development, and 
studies. The full amount for 2022 was committed. 

4.3 

Maintenance and development 

In 2022, four releases were developed, allowing business managers to manage codelist values, 
to improve the B2B services and fix a number of identified issues.  

4.4 

Studies 

The IMS is based on software dating back to 2014 which is approaching the end of its lifetime. 
In recent years, the European Parliament and the European Court of Auditors have repeatedly 
called for improvements to the IMS.  

A study was commissioned (contract signed on 15 November 2021) to explore the potential of 
the IMS, not least because of the ongoing discussion on the digitalisation of the fight against 
fraud and the interoperability of relevant  IT tools at EU and Member State level. The study 
should  also  help  better  understand  user  needs  and  preferences,  how  data  quality  can  be 
improved and what the IT options are. The contract was signed in November 2021 and the study 
was completed in May 2022. 

4  AFIS – implementation in 2022 

Under the programme’s third strand (AFIS), thirteen platform releases – consisting of several 
combined application releases –, thirty-three releases for the new version of the Import, Export 
and Transit directory and several other application releases and fixes were developed in 2022, 
totalling more than seventy releases. Among these were several major releases: 

1.  a first version of the fraud analytical platform; 

2.  a new version of the Automated Monitoring Tool, with completely renewed visuals; 

3.  a  business-to-business  service  for  financial  intelligence  units  in  the  Customs 

Information System; 

4.  a technical upgrade of the data warehouse to the new Cloudera platform; and 

5.  the  Customs  Information  System  started  to  exchange  intellectual  property  right  data 

with the World Customs Organization. 

In 2022, AFIS also supported 10 joint customs operations. 

26 

 
 
5  Communication 

The successful implementation of the programme and the achievement of its objectives require 
a  structured  approach  to  inform  potential  beneficiaries  on  funding  opportunities  as  best  as 
possible. 

On an annual basis, the Commission also disseminates information on the achievements and 
the results of the actions that received funding, for example by means of this document. 

On information, communication and visibility, Article 15(2) of the UAFP Regulation states: 

‘The Commission shall on a regular basis implement information and communication actions 
relating  to  the  Programme,  to  actions  taken  pursuant  to  the  Programme  and  to  the  results 
obtained. Financial resources allocated to the Programme shall also contribute to the corporate 
communication of the political priorities of the Union, insofar as those priorities are related to 
the objectives referred to in Article 2.’ 

6.1 

Informing potential applicants 

For the anti-fraud component (Hercule), the full texts of the calls’ documents and the related 
templates are made available on the Commission’s Funding and Tenders Portal.  

Potential applicants were also informed about the publication of 2022 calls via emails sent to 
the Delegates of the Working Party on Combating Fraud of the European Council (GAF), the 
members of the Advisory Committee for the Coordination of Fraud Prevention (COCOLAF), 
the  Anti-Fraud  Coordination  Services  (AFCOS),  the  network  of  associations  for  European 
criminal law and for the protection of the EU’s financial interests, and to the Expert Group on 
Mutual Assistance in Customs Matters (EMAC). 

6.2 

Dissemination of results 

Disseminating the results of technical assistance projects (Hercule) is not always possible since 
most  of  the  achievements  relate  to  investigations  for  which  information  often  cannot  be 
disclosed.  

The  results  of  training  activities  were  disseminated  by  distributing  electronic  and/or  paper 
reports  summarising  the  events.  Some  beneficiaries  posted  the  recorded  event(s)  and  the 
projects’  outputs  on  their  websites  or  created  dedicated  websites  to  disseminate  results  and 
conclusions.  

For the IMS, there is, in particular, the follow-up that is given to IMS notifications, either by 
the reporting Member State or by the Commission services involved in the financial follow-up 
of identified financial irregularities or cases of fraud detrimental to the EU’s financial interests. 
OLAF  reports  within  the  Commission  on  the  performance  of  the  tool  and  the  received 
notifications. It also reports annually to the European Parliament and the public.  

There  is  no  specific  dissemination  of  results  stemming  from  the  use  of  the  AFIS  platform, 
except for the annual activity reporting by OLAF and the programme statements disseminated 
by  the  Commission.  In  this  reporting,  the  (yearly)  number  of  information  items  on  mutual 
administrative assistance made available in the relevant AFIS applications is communicated as 
a performance indicator. 

27 

 
 
6.3 

Workshop for grant beneficiaries 

The 2022 UAFP budget financed a dedicated workshop for beneficiaries of Union Anti-fraud 
programme, as well as Hercule III anti-fraud training grants. The event took place in Freiburg, 
Germany, in April 2023 and was co-organised with the Max Planck Institute for the Study of 
Crime, Security and Law (MPI-CSL).  

The  event  brought  together  around  40  university  professors  and  lecturers  specialised  in  the 
protection  of  the  Unions’s  financial  interests  and  in  European  criminal  law,  either  in  their 
capacities as beneficiaries of Hercule/UAFP grants for legal studies, or as representatives of 
many  national  associations  for  European  criminal  law  and  for  the  protection  of  the  EU’s 
financial interests (PIF Associations). In addition, the workshop was attended by 21 Member 
States representatives. 

The  event  provided  the  stage  for  sharing  the  findings  of  20  projectes  (both  finalised  and 
ongoing)  financed  by  the  UAFP  and  the  previous  Hercule  III  programme  and  share  best 
practices and lessons learnt in the implementation of this type of research-based grants.  

Besides  the  added-value  of  the  high-level  academic  content  presented,  the  participants  also 
warmly welcomed this OLAF initiative as it enabled networking and future cooperation. 

6.4 

Visibility of EU funding 

On information, communication and visibility, Article 15(1) of the UAFP Regulation states: 

‘Except  where  there  is  a  risk  of  compromising  the  effective  performance  of  anti-fraud  and 
customs operational activities, the recipients of Union funding shall acknowledge the origin of 
those funds and ensure the visibility of the Union funding, in particular when promoting the 
actions  and  their  results,  by  providing  coherent,  effective  and  proportionate  targeted 
information to multiple audiences, including the media and the public.’ 

Equipment purchased under grant projects for technical assistance is often labelled with logos 
or stickers referring to EU/Commission funding (except for covert equipment and operations). 
When possible, beneficiary organisations disseminate information about purchased equipment 
on project websites or press releases, mentioning the support from EU funding. 

Under the training type  of actions, all beneficiaries of grants  were requested to  mention  the 
support from the UAFP (or Hercule for previous grants), where applicable: 

1.  in  every publication (title page) or related material  developed (e.g. studies, booklets, 

newsletters and leaflets); 

2.  in electronic information (e.g. websites, audiovisual material, videos and software); 
3.  at information events (conferences and seminars); and 
4.  by creating a link from their website to the programme’s site.  

This  aspect  of  EU-support  visibility  is  not  applicable  to  AFIS  and  IMS  components,  as  no 
similar grant projects are implemented. 

6  Feedback from programme participants  

As indicated in Section 3, beneficiaries of UAFP/Hercule grants for trainings, conferences and 
seminars  carry  out  surveys  among  the  participants  to  collect  information  on  the  perceived 
quality and relevance of the event attended. According to the final reports received in 2022 for 
the  training  grants,  a  total  number  of  516  participants attended  activities  co-financed  by 
Hercule.  

28 

 
 
The Commission received 286 completed questionnaires, which reflected, in the assessments 
done, a high level of satisfaction. The feedback received was overwhelmingly positive, with 
nearly  91%  of  the  participants  assessing  the  events  as  excellent  or  good.  Participants 
appreciated  the  opportunities  for  cooperation  and  exchange  of  information  offered  by  the 
training events and considered that the activities had a practical impact on their daily work.  

Based  on  the  feedback  results,  it  can  be  concluded  that  the  events  have  largely  met  their 
objectives and have helped increase awareness on the risks to which the EU’s financial interests 
are exposed.     

For  technical  assistance  grants,  the  beneficiaries  provide  feedback  on  the  programme  in  the 
final  technical  report.  The  satisfaction  question  concerns  the  suitability  of  the  purchased 
equipment and tools for the needs of the organisation. In 2022, more than 95% of beneficiaries 
reported an excellent level of satisfaction and about 5% reported a good level of satisfaction. 

For the use of the IMS tool, the Commission (OLAF) holds a yearly survey on the satisfaction 
rate expressed by the users on the use of the tool and the support received. The latest IMS users’ 
feedback concerning 2022 usage showed a satisfaction level of 82%. 

For  the  AFIS  platform,  used  for  information  exchange,  there  is  no  specific  reporting  on 
feedback from participants or beneficiaries. OLAF has the task to keep the platform up to date 
and running. OLAF registers as a performance indicator the number of information items on 
mutual administrative assistance made available in the relevant AFIS applications: the Customs 
Information  System,  the  Customs  File  Identification  Database,  and  the  Mutual  Assistance 
System. 

7  Conclusions and way forward  

The UAFP builds on the well-established  foundations laid by 16  years of implementing the 
successive  Hercule  programmes.  It  is  developing  into  an  important  and  effective  tool  in 
protecting the financial interests of the EU. The increased potential of the new programme is 
also a consequence of the increased agility and coherence resulting from combining the three 
previously isolated components that today make up the UAFP. 

Despite the disruption caused by the recent pandemic and the switch to a new programming 
framework, the support provided by the Commission under the three components of the UAFP 
continued to prove its efficienlcy and added-value. 

On  the  anti-fraud  component  (i.e.  the  former  Hercule  programme)  specifically,  the  tangible 
results outlined above demonstrate that in  2022, the funding provided under the  operational 
programmes  (both  the  UAFP  and  the  previous  Hercule  III)  played  an  important  part  in 
preventing  and  combating  fraud,  corruption  and  other  illegal  activities  undermining  the 
financial interests of the EU. This means that the programmes helped protect taxpayers’ money 
from being diverted from its purpose. Some of the equipment financed also produced positive 
results in other areas, such as detecting large shipments of drugs. 

The programme continues to adapt to the evolving anti-fraud priorities with a stronger focus of 
support  on  the  expenditure  side.  This  shift  in  focus  reflects  the    new  instrument  dedicated 
specifically for Member States’ customs authorities (Customs Control Equipment Instrument) 
and the increased EU budget with its new forms of expenditure.  

29 

 
 
 
The programme is also aligning more strongly with the Commission’s anti-fraud strategy. This 
strategy was revised in 2019 and places a much larger focus on the collection and use of data 
for anti-fraud purposes.  

in 

Future activities financed under the anti-fraud component will aim to emphasise cross-border 
interoperability  with 
cooperation 
equipment/tools purchased under other EU-funded programmes. Importantly, the programme 
is  also  supporting  the  digital  transition  of  Member  State  administrations  (for  example  by 
helping them to learn how to use advanced tools for data analysis). 

the  anti-fraud  area  and  complementarity  and 

30