Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2014/62/EU as regards certain reporting requirements
Date: 2023-10-17
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU statistics, counterfeiting, disclosure of information, euro, exchange of information, fight against crime, judicial cooperation in criminal matters in the EU, penalty

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   EUROPEAN COMMISSION  Brussels, 17.10.2023  COM(2023) 582 final 2023/0355 (COD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive 2014/62/EU as regards certain reporting requirements   
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
In  its  Communication  on  ‘Long-term  competitiveness  of  the  EU:  looking  beyond  2030’ (1), 
the  Commission  has  stressed  the  importance  of  a  regulatory  system  that  ensures  that 
objectives  are  reached  at  minimum  costs.  It  has  committed  therefore  to  a  fresh  push  to 
rationalise and simplify reporting requirements, with the ultimate aim to reduce such burdens 
by 25%, without undermining the related policy objectives.  

Reporting  requirements  play  a  key  role  in  ensuring  correct  enforcement  and  proper 
monitoring  of  legislation.  Their  costs  are  overall  largely  offset  by  the  benefit  they  bring,  in 
particular  in  monitoring  and  ensuring  compliance  with  key  policy  measures.  Reporting 
requirements can however also impose disproportionate burdens on stakeholders, particularly 
affecting  SMEs  and  micro-companies,  also  given  organisational  and 
technological 
developments  that  call  for  original  reporting  requirements  to  be  adjusted.  Their  cumulation 
over  time  can  result  in  redundant,  duplicating  or  obsolete  obligations,  inefficient  frequency 
and timing, or inadequate methods of collection.  

Streamlining reporting obligations and reducing administrative burdens is therefore a priority. 
In  this  context,  the  present  proposal  aims  to  simplify  an  initiative  included  in  headline 
ambition “an Economy that works for people” in the policy area of Economic and Monetary 
Union.  

The  proposal  will  rationalise  reporting  obligations  by  removing  reports  which  are  not 
necessary any longer.  

The  reporting  requirements  concern  public  authorities.  This  proposal  would  abolish  the 
obligation  for  Member  States’  competent  authorities  to  transmit  statistical  data  to  the 
Commission  on  the  number  of  counterfeiting  offences  and  on  the  number  of  persons 
prosecuted  and  convicted  of  the  counterfeiting  offences,  as  laid  down  in  Article  11  of 
Directive  2014/62/EU2.  While  Member  States’  authorities  have  difficulties  gathering  and 
transmitting reliable data in order to comply with this specific provision, they do not play a 
pivotal role in the effective implementation of this specific legal act.  

• 

Consistency with existing policy provisions in the policy area 

The proposal is part of a first package of measures to rationalise reporting requirements.  This 
is a step in a process looking comprehensively at existing reporting requirements, with a view 
to assess their continued relevance and to make them more efficient.  

The rationalisation introduced by these measures will not affect the achievement of objectives 
in the policy area, for the following reasons: 

The  primary  objective  of  Directive  2014/62/EU  is  to  protect  the  euro  and  other  currencies 
against counterfeiting by criminal law.  

It establishes minimum rules concerning the definition of criminal offences and sanctions in 
the area of counterfeiting  of the euro and other currencies as well as common provisions to 

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COM(2023)168. 
OJ L 151, 21.5.2014, p.1.  

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strengthen the fight against those offences and to improve investigation of them and to ensure 
better cooperation against counterfeiting. 

The  main  elements  of  the  Directive  include  the  criminalisation  of  the  ‘production’  and 
‘distribution’ of counterfeit currencies as well as ‘preparatory offences’ like the production of 
security  features,  the  provisions  on  penalties,  and  the  principle  of  territoriality  and  the 
extraterritorial  jurisdiction.  It  also  includes  a  provision  on  the  use  of  certain  investigative 
tools,  and  a  provision  ensuring  that  the  National  Analysis  Centres  (NACs)  and  the  Coin 
National  Analysis  Centres  (CNACs)  can  analyse  euro  counterfeits  during  on-going  judicial 
proceedings.  The  effective  transposition  of  these  elements  into  national  legislations  is 
essential to achieve the objectives of the Directive.  

In  addition,  the  Directive  requires  Member  States  to  transmit  to  the  Commission  relevant 
statistical data relating to the number of offences concerning counterfeit notes and coins and 
the number of persons prosecuted and sentenced.  

This  data  would  in  principle  help  to  gain  a  more  complete  picture  of  the  problem  of 
counterfeiting at Union level and thereby contribute to formulating a more effective response.  

However,  experience  has  shown  that  the  statistical  data  on  Euro-counterfeiting  criminal 
proceedings produced by the Member States according to  this provision are not  comparable 
and  often  scattered,  incomplete  and  inaccurate.  Thus,  in  practice,  the  obligation  does  not 
contribute  effectively  to  monitoring  and  evaluating  whether  the  Directive  has  reached  its 
objective.  

Not fulfilling statistical data reporting obligations cannot generally justify liberating Member 
States from those obligations. It should, on the contrary, lead to efforts to comply, including 
by testing different approaches and/or by facilitating common reporting standards and formats 
by the Commission as a basis for reporting obligations upon Member States.   

However,  specifically,  with  regard  to  Euro-counterfeiting,  there  are  already  reporting 
obligations  on  the  number  of  confiscated  counterfeit  coins  and  banknotes  in  place. 
National authorities  in  EU  countries  must  send  counterfeit  notes  and  coins  to  their  national 
analysis  centres  for  analysis  and  identification.  Banks  and  other  credit  institutions  must 
withdraw from  circulation all euro notes and coins which they suspect to be counterfeit and 
hand them over to the relevant national authorities. 

Thus, the size and trends of the phenomenon as  such is  well documented and known to  the 
competent  national  authorities3.  For  this  specific  area  of  crime,  the  obligation  to  report 
statistical data on criminal proceedings therefore is not essential to ensure that the objectives 
of the Directive are achieved and monitored. 

• 

Consistency with other Union policies 

Under the Regulatory Fitness and Performance Programme (REFIT), the Commission ensures 
that  its  legislation  if  fit  for  purpose,  targeted  to  the  needs  of  stakeholders  and  minimizes 
burdens  while  achieving  its  objectives.  This  proposal  is  therefore  part  of  the  REFIT 
programme,  reducing  the  complexity  of  reporting  burdens  arising  from  the  EU  legal 
environment. 

While  certain  reporting  requirements  are  essential,  they  need  to  be  as  efficient  as  possible, 
avoiding overlaps, removing unnecessary burdens and using as much as possible digital and 
interoperable solutions.  

All data on counterfeit banknotes and coins are registered in the ECB’s Counterfeit Monitoring system   

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(CMS)  and  shared  with  the  national  competent  authorities  through  reports  and  participation  in  experts  groups 
meetings.   

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The current proposal rationalises reporting requirements thus making the achievement of the 
objectives of legislation more efficient and less burdensome for public authorities. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this proposal is Article 83(1) on judicial cooperation on criminal matters, 
which is compatible with the Directive 2014/62/EU. 

• 

Subsidiarity (for non-exclusive competence)  

The  reporting  requirements  concerned  are  imposed  by  EU  law.  Their  rationalisation  is 
therefore  best  done  at  EU  level  to  ensure  legal  certainty  and  consistency  of  reporting.  This 
will  ensure  a  level  playing  field  for  public  administrations  across  the  EU,  which  will  be 
benefiting from the rationalisation of reporting requirements arising from these measures. 

• 

Proportionality 

The  rationalisation  of  reporting  requirements  simplifies  the  legal  framework  by  introducing 
minimum changes to existing requirements that do not affect the substance of the wider policy 
objective.  The  proposal  is  therefore  limited  to  those  changes  that  are  necessary  to  ensure 
efficient  reporting  without  changing  any  of  the  substantial  elements  of  the  legislation 
concerned.  

• 

Choice of the instrument 

Considering that the amendments only concern the deletion of an obligation for the Member 
States  to  provide  data,  which  does  not  require  any  transposition  by  the  Member  States,  a 
Decision  of  the  European  Parliament  and  of  the  Council  adopted  in  compliance  with  the 
procedure  set  out  in  Article  83(1)  TFEU  is  deemed  to  be  the  most  appropriate  legal 
instrument. 

3. 

• 

N/A 

• 

N/A 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Stakeholder consultations 

Collection and use of expertise 

This proposal has been identified following a process of internal scrutiny of existing reporting 
obligations and based on the experience from implementation of the related legislation. Since 
this is a step in the process of continuous assessment of reporting requirements arising from 
EU legislation, the scrutiny of such burdens and of their impact on stakeholders will continue. 

• 

Impact assessment 

The  proposal  concerns  limited  and  targeted  changes  of  legislation  in  view  of  rationalising 
reporting requirements. It is based on experience from implementing legislation. The changes 
do  not  have  significant  impacts  on  the  policy,  but  ensure  a  more  efficient  and  effective 
implementation.  Its  targeted  nature  and  the  lack  of  relevant  policy  options  make  an  impact 
assessment not necessary.  

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• 

Regulatory fitness and simplification 

This is a REFIT proposal, aiming to simplify legislation and cut burdens for stakeholders.  

It will reduce the  administrative burden on competent authorities by eliminating a redundant 
statistical reporting requirement.  

• 

N/A 

4. 

N/A 

5. 

• 

N/A 

• 

Fundamental rights 

BUDGETARY IMPLICATIONS 

OTHER ELEMENTS 

Explanatory documents (for directives) 

Detailed explanation of the specific provisions of the proposal 

This  proposal  repeals  Article  11  of  Directive  2014/62/EU  on  the  protection  of  the  euro  and 
other  currencies  against  counterfeiting  by  criminal  law,  taking  into  account  the  particular 
circumstances  relevant  to  combating  the  counterfeiting  of  currencies  and  the  euro.  It  thus 
abolishes the redundant statistical reporting requirements instituted by that specific provision.  

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2023/0355 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Directive 2014/62/EU as regards certain reporting requirements 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 83(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee4,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Reporting  requirements  play  a  key  role  in  ensuring  proper  monitoring  and  correct 
enforcement of legislation. However, it is important to streamline those requirements, 
in order to ensure that they fulfil the purpose for which they were intended and to limit 
the administrative burden.  
Article  11  of  Directive  2014/62/EU  of  the  European  Parliament  and  of  the  Council5 
requires  Member  States  to  transmit  statistical  data  to  the  Commission,  at  least  every 
two years, on the number of offences  concerning counterfeit notes and coins and the 
number of persons prosecuted for and convicted in connection with those offences.  

(3)  With  regard  to  euro-counterfeiting,  there  are  already  reporting  obligations  on  the 
number of confiscated counterfeit coins and banknotes in place, namely in Article 3(1) 
of Council Regulation (EC) No 1338/20016. The size and trends of the phenomenon as 
such  is  well  documented  and  known  to  the  competent  national  authorities.  For  this 
specific area of crime, the obligation to report statistical data on criminal proceedings 
is  therefore  not  essential  to  ensure  that  the  objectives  of  Directive  2014/62/EU  are 
achieved and monitored.  

(4) 

(5) 

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Therefore,  the  requirement  under  Article  11  of  Directive  2014/62/EU  should  be 
abolished, 
‘Long-term 
competitiveness of the EU: looking beyond 2030’7. 

the  Commission’s  Communication  on 

line  with 

in 

In  accordance  with  Articles  1  and  2  of  Protocol  No  22  on  the  position  of  Denmark 
annexed  to  the  Treaty  on  European  Union  (‘TEU’)  and  to  the  Treaty  on  the 

OJ C 271, 19.9.2013, p. 42.  
Directive 2014/62/EU of the European Parliament and of the Council of 15 May 2014 on the protection 
of  the  euro  and  other  currencies  against  counterfeiting  by  criminal  law,  and  replacing  Council 
Framework Decision 2000/383/JHA (OJ L 151, 21.5.2014, p. 1).  
Council  Regulation  (EC)  No  1338/2001  of  28  June  2001  laying  down  measures  necessary  for  the 
protection of the euro against counterfeiting (OJ L 181, 4.7.2001, p. 6.). 
COM(2023)168. 

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(6) 

Functioning  of  the  European  Union  (‘TFEU’),  Denmark  is  not  taking  part  in  the 
adoption of this Decision and is not bound by it or subject to its application. 

[“In  accordance  with  Article  3  of  Protocol  No  21  on  the  position  of  the  United 
Kingdom and Ireland in respect of the area of freedom, security and justice, annexed 
to the TEU and to the TFEU, Ireland has notified its wish to take part in the adoption 
and application of this Decision ”OR “In accordance with Articles 1 and 2 of Protocol 
No 21  on  the  position  of  the  United  Kingdom  and  Ireland  in  respect  of  the  area  of 
freedom,  security  and  justice,  annexed  to  the  TEU  and  to  the  TFEU,  and  without 
prejudice to Article 4 of that Protocol, Ireland is not taking part in the adoption of this 
Decision and is not bound by it or subject to its application.” ].  

(7) 

Directive 2014/62/EU should therefore be amended accordingly, 

HAVE ADOPTED THIS DECISION: 

Article 11 of Directive 2014/62/EU is deleted.  

Article 1 

This Decision is addressed to the Member States in accordance with the Treaties. 

Article 2 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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