Source: EURLEX
Language: en
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##### **COMMISSION OF THE EUROPEAN COMMUNITIES** Brussels, 06.05.1998 COM(1998) 278 final **PROTECTION OF THE COMMUNITIES' FINANCIAL INTERESTS** **FIGHT AGAINST FRAUD** **WORK PROGRAMME 1998/1999** (presented by the Commission)

The protection of Community financial interests and policies is a constant priority for the
authorities of the Member States and the European institutions. Since 1989, the
Commission has rationalised its initiatives within the framework of its annual work
programme, which takes account of the major strategy guidelines of its anti-fraud policy [1 ]

supported by the European Parliament and the Council.

In this context, the 1998/99 work programme will be marked by a series of new and
important initiatives in particular in the framework of preparation of accession candidate
countries, protection of consumers against the risks of counterfeiting, defence of the
single currency against counterfeiting, laundering of the product of fraud against the
Community budget as well as adaptation of the Commission's anti-fraud structure to the
demands of its tasks. At the same time, it is appropriate to continue preventive action
already commenced, to ensure reinforcement of presence on the ground with the task
groups set up in high risk sectors and to strengthen further customs cooperation.

All the actions planned in this programme are split into four priority sectors.

**1.** **Development of operational actions and strategic activities.**

The 1998/99 work programme reiterates in its **first section** the initiatives already taken in
previous years to continue action on the ground and intelligence activities so as to define
new guidelines in the fight against fraud on the basis of a consolidated acquis and
reinforced cooperation between the Member States and the Commission.

Since 1994 work on the ground together with the national authorities has brought about
significant results, particularly in sensitive sectors involving organised trafficking. It is
important to continue this policy, which has moreover been supported by the Council in
its work on all types of organised crime. Reinforcement of the Community approach,
which was achieved by working together with specialised services, including the judicial
authorities, will make it possible to improve both the detection of fraud and the
prosecution of fraudsters. The development of the Commission's operational activities
with multi-disciplinary teams and the "task group" system is in line with this approach.

Improvements to data-processing equipment and tools and to the follow up to
notifications is aimed at strengthening the use of intelligence in risk analysis to enhance
knowledge of the fraud phenomenon, in particular where transnational criminal networks
exploit weaknesses in trade, import or export regimes to escape surveillance by the
authorities of considerable quantities of highly taxed products [2] at national and
Community level or to benefit unduly from favourable commercial policy measures. This

**Protection** **of financial interests: anti-fraud strategy.** **COM(94)92** **final of 23.4.1994:**

**reinforcing** **the** **presence on the ground and support for operations, concentrating on high-risk sectors;**
**strengthening the partnership between the Commission and the Member States, extending information**
**networks** **and** **improving the exploitation of intelligence;**
**improving the Community legislative framework in every sector of activity.**
**securing** **greater compatibility between national legislation.**

**In particular cigarettes and alcohol.**

progress in the analysis of information will, with the Commission's help, make for better
targeting of controls and greater effectiveness in joint surveillance operations.

**2.** **Strengthening institutional structures and the legal** **framework.**

The results in 1997 clearly confirm the presence of criminal organisations which target
European finances by exploiting disparities and even incompatibilities between the
different national legal systems. The objectives pursued by the Commission for the
protection of Community interests contained in the **second** section of the work
programme include this criminological reality of fraud and major crime. It is in response
to these concerns and those expressed by the Council and the European Parliament in the
discharge procedure on implementation of the budget that the Commission intends to
reinforce its internal organisation and to transform its anti-fraud structure into a "Task
Force" directly answerable to the Secretary General.

To energise and strengthen the fight against fraud and illegal activities on the ground and
reinforce cooperation at every stage of the investigation and follow-up of inquiries, the
Commission intends to consolidate current practices in the existing legal framework by
means of agreements, protocols, arrangements or memoranda of understanding with all
the competent institutions or authorities. By routinely going beyond the stage of ad hoc
cooperation, all the authorities concerned and the Commission will succeed in improving
the prevention of and fight against economic and financial crime, organised crime and
certain irregularities in financial management and corruption.

Following ratification of the Treaty of Amsterdam, the Community will have a new legal
base (Article 280) for the protection of financial interests and the fight against fraud,
which will benefit the development of a new dynamic and will allow the Council and the
European Parliament, on a proposal from the Commission "to take the necessary
measures to afford effective and equivalent protection in the Member States".

It is also important to continue the "Corpus Juris" study; this will enable progress to be
made to strengthen criminal law protection at Union level and open a path to new
effective initiatives to approximate national enforcement systems and combat more
effectively fraud and other illegal activities harmful to Community financial interests.

**3.** **Launching of targeted actions against** **certain** types **of** economic crime
**harmful to specific Community interests.**

Major organised crime does not confine its attacks to European finances but also
damages the Union's economic and commercial interests and may in future damage
monetary interests. It is therefore important to strengthen the response of authorities and
raise the level of protection of Community interests. Specific action included in the third
**section** of this action plan is in line with this perspective.

Essentially this will consist of mobilising and concentrating the Community effort on
protection of intellectual property and anti-counterfeiting action, in particular where there
are risks to the safety and health of European consumers. The commencement of the third
stage of Economic and Monetary Union (EMU) and the introduction of the emo currency
on 1 January 1999 and the putting into circulation of euro notes and coins on I January
2002 represent essential deadlines for the Community and the European Uni **OS.** **to**

'"> .-scquently, it is important to put in place all the necessary legal instruments for the
x ^ I protection of the single currency in particular for the fight against counterfeiting.

In addition to using instruments which are already available, [3] the organisation of
cooperation between the Commission, the future European central bank (ECB), the
national authorities concerned (analysis units, police services) and the other Union or
international bodies responsible for combating counterfeiting, will require the
establishment of an appropriate legal framework to lay down the principles of mutual
assistance and cooperation between these bodies to prevent and investigate offences and
combat illegal activities harmful to the euro.

**4.** **Putting in place conditions favourable for the protection of** **European**
**finances in the framework of the enlargement of the Union and cooperation**
**with non-member countries.**

The practical integration of the anti-fraud dimension into the pre-accession strategy
presupposes a specific reinforcement of the relations between the different authorities and
specialised services involved in the fight against fraud and major economic and financial
crime so as to anchor cooperation with the Commission (UCLAF) in daily practice.

Consequently, the development of specific cooperation and partnership in the area of
protection of financial interests and the fight against fraud with applicant countries,
which was launched in the 1997/98 work programme, must be continued in the concrete
actions detailed in the **fourth section** of this work programme. The objective aimed for
consists of making available to applicant countries the technical assistance and support
needed both to ensure better protection of own resources and the sound application of
commercial policy and to achieve an equivalent level of protection of Community
finances so that enlargement can take place on the necessary sound basis.

Cooperation with the authorities in non-member countries should also be strengthened in
the framework of relations with the Community's partners.

*** * ***

#### **1. Section 1: Development of operational actions and strategic** **activities**

The Commission will concentrate its activities on the ground and its analytical work on
countering major economic and financial and organised crime.

**1.1** **Strengthening presence on the ground**

**1.1.1** On the-spot-checks and inspections: Council Regulation No 2185/96 of 11
November 1996.

On the basis of its initial experience of the actual implementation on the ground
of this Regulation, the Commission:

**3**
**National instruments, EC, EU, international instruments (Geneva Convention** **of** **20 April 1929).**

_**will carry**_ _out a first assessment of the Community provisions for_ _on-the-spoi_ _checks and_
_inspections carried out by authorised_ _UCLAF_ _inspectors;_

_will continue, in partnership with the responsible national authorities, Us approach to_
_make optimal and targeted use_ _of_ _this new instrument._

**1.1.2** Task groups: development of investigations in high risk sectors.

_Stepping_ _up of_ _action_ _against_ _organised_ _rings_ _and_ _networks_ _in close_ _cooperation_ _with the_ _specialised_
_national_ _services,_ _in_ _particular in sensitive sectors (cigarettes_ _...alcohol)._

**1.1.3** Technical assistance

_Development of action to_ _coordinate_ . _in investment in technical equipment and aids to_
_investigations, in particular to ensure greater compatibility in national systems used_ _(e.g._ _tools for_
_management of_ _databases)._

**1.2** **Strengthening control mechanisms and cooperation in the customs and tax**
**fields**

**1.2.1** Building on the action plan for customs transit in Europe, [4] the Commission will
continue, in partnership with the Member States and the partners to the common
transit convention, to implement action aimed at improving targeted controls on
goods and close and regular cooperation between customs authorities.

Improvement in the early warning system and computerisation of the transit
regime:

_Improve and apply the early warning system for all countries which use the Community transit_
_regime until the establishment of the_ _NCTS._ _[5 ]_

Improvement in recovery and guarantee procedures:

_Continuation of work under way to improve identification of debtors as well as recovery of_
_amounts owed by persons responsible for irregularities or offences_ _and only_ _in their absence from_
_the principal._

_Adaptation of the guarantee systems with a view to targeted_ _application_ _based on the reliability of_
_the operator_ _and the_ _risks_ _involved.._

**1.2.2** Following on from the Commission's communication in the area of preferential
agreements, [6] the Commission will put forward proposals to close current
loopholes.

_Production of a horizontal Community system to harmonise recovery action by Member States_
_(measures to safeguard_ _duties,_ _publication of information intended to warn importers of specific_
_risks regarding irregular_ _certificates...)._

**4**

**5**

**"An action plan for transit in Europe - a new customs** **policy".** **C0M(97)188** **final,** **30 April** **1997.**

**New,** **Computerized Transit** **System.**

**COM(97)402** **final,** **23 July 1997, "Communication from the Commission on the management of preferential tariff**
**arrangements".**

_Reflection on the introduction into the preferential arrangements of the possibility of applying_
_temporary restrictive or suspensive measures of certain preferences_ _without_ _prejudice to existing_
_objectives which have the same purpose while complying with the_ _Community's_ _international_
_commitments._

1.2.3 Following on from the work of the high-level group [7] on fraud in the alcohol and
tobacco sector, the Commission intends :

_to carry out a feasibility study concerning_ _computerization_ _of the systems for control and_
_movement of products subject to excise duties. In the short term, dependent on the_
_resources available, the Commission will_ _work_ _with the Member States to introduce an_
_early warning system for movements of sensitive products;_

_to organize FISCALIS seminars with the Member States to establish a code of best_
_practice for the granting and withdrawal of licences for those responsible for excise_
_warehouses and the control of excise products produced and stored in bonded_
_warehouses;_

_to work to develop an effective system of excise liaison offices in the Member States to_
_channel the administrative cooperation_ _effort._

With regard to the recovery of debts, the Commission will continue its work on
reinforcing mutual assistance in this area:

_Commission proposal to amend Directive 76/308 (mutual assistance between Member_
_States on recovery)._

The Commission will continue its efforts to improve the application of
administrative mutual assistance and administrative cooperation in the area of
indirect taxation :

_Implementation of the FISCALIS programme (OJ L 126 of_ _28.4.98)_ _on_ _administrative_
_cooperation in indirect taxation (computer systems, exchanges, seminars, multilateral_
_controls, common training initiative);_

_Production and follow up of Commission report on the application of current legislation_
_in the area of mutual assistance and_ _administrative_ _cooperation on_ _V.A.T._ _in_ _accordance_
_with article 14 of Council Regulation_ _(EEC)_ _No 218/92._

**1.2.4** The Commission will continue, within available resources, to play its role in joint
customs surveillance operations (air, sea, rail, road) carried out at European
Union level and aimed at combating organised crime with selective, targeted
actions, in particular in areas of Community interest.

**1.3** **Strengthening the exploitation and analysis of intelligence**

**1.3.1** Establishment of a customs intelligence section in the intelligence, information
and evaluation of legislation unit to:

_Improve_ _strategic and operational analysis to support and guide control and investigation activity_
_and to improve the quality of legislation from the point of view of the vulnerability of regulatory_
_mechanisms to illegal activities (ex-ante and_ _ex-post_ _SEM 2000 examination):_

**7** **Group established on 26 March 1997 by a decision of the directors-general of customs and indirect taxes.**

_use of notifications and other data available. Risk analysis. Making available_
_information to all authorised partners;_

_cooperation with national bodies and Europol and international bodies (Interpol)._
_Comparative analysis of situations and_ _concrete_ _cases;_

_development of studies aimed at improved analysis of different situations, a better_
_assessment of the extent and development of the phenomenon of fraud and illegal_
_activities and study of their causes and_ _consequences;_

_development of control or investigation methods or techniques adapted to developments_
_in crime;_

_Continue the analysis in the Fraud Prevention Sub-committee (SCAF) of_ _serious_ _V.A._ _T._ _fraud_
_cases,_ _particularly those involving_ _intracommunity_ _transactions._

_Make use of the results of cooperation under the interinstitutional agreement with the Joint_
_Research Centre at_ _Ispra_ _(study on statistical_ _analysis,_ _"Integrated Intelligence and Information_
_Management"project,_ _"Intelligence_ _Tools"project...)._

_Implement the CIS_ _database^_ _to ensure the sound application of customs and agricultural_
_regulations;_

_Present the 2nd evaluation report on the functioning of the "black_ _list"_ _regulation_ [ 9] _and propose_
_possible amendments to strengthen the_ _information_ _system._

**1.4** **Cooperation in the framework of** **the** **fight against money-laundering**

In the light of the second evaluation report on Directive 91/308/EEC [10] and taking
account of the provisions contained in the second protocol [11] to the Convention on
criminal protection of the Communities' financial interests:

_Definition of the_ _Commission's_ _role in combating counterfeiting with regard to information_
_concerning the laundering of the products of fraud against the Community_ _budget._

#### **2 Section 2: strengthening institutional structures and the legal** **framework.**

2.1 Following its communication, [12] the Council recommendation [13] and the discharge
decision of the European Parliament to ensure optimal protection against fraud,

**8** **Following** **the** **entry into force** **of** **Council Regulation (EC)** **No** **515/97** **of** **13.3.1997 concerning administrative mutual**
**assistance in the areas covered (OJ L** **82,22.3.1997).**

**9** **Council Regulation (EC)** **No*** **1469/95 of 22 June 1995 concerning** **measures** **to be taken with regard to certain** **beneficiairies** **of**
**operations financed by the Guarantee Section of the EAGGF (OJ L** **145,** **29.6.1995).**

**10** **Council Directive** **of** **10 June 1991 concerning prevention of** **the use** **of** **the** **financial system for the purposes of laundering** **of**
**capital (OJL** **166, 28.6.1991)**

**11** **Council** **Act** **of** **19** **June 1997, OJ C** **221,** **19.7.1997.**

irregularities in financial management, corruption and organised crime, [14] the
Commission intends to strengthen its anti-fraud service and transform UCLAF
into a Task Force directly answerable to the Secretary General.

_The status, procedures,_ _areas_ _of action and_ _competencies_ _of_ _this_ _"Task Force" will be_
_defined so as to confer on it greater independence of_ _action_ _both as an investigation_
_service and as a service_ _combating_ _economic and financial crime. These arrangements_
_will take account of the needs relating to legal security and_ _transparency._

_An anti-corruption cell will be set up within the "Task_ _Force "._ _This cell will be called to_
_act in cases of suspicion of irregularities._

_The liaison and criminal law expertise_ _interface,_ _henceforth more clearly_ _identified,_ _will_
_bring the_ _Commission's_ _technical and_ _operational_ _assistance,_ _both in legal and practical_
_terms, to the responsible national authorities at all stages from the initial inquiry up to_
_recovery_ _(contribution_ _to_ _the_ _preparation of_ _investigations,_ _the_ _submission_ _of cases to the_
_judicial authorities and transnational cooperation in the criminal law area and_
_strengthening of recovery procedures)._

_A specialised_ _investigation_ _unit for_ _"external actions_ _"_ _will be_ _established._

_Computer_ _support to exploitation of_ _intelligence_ _and_ _intelligence activities_ _are henceforth_
_the responsibility of two separate units._

2.2 Consolidation of cooperation practices.

The Commission will continue with his reflection in order to :

_On the one_ _hand,_ _establishment_ _of agreements, arrangements and memoranda of_
_understanding with national bodies, the European institutions and bodies and_
_intergovernmental_ _bodies._

_On the other_ _hand,_ _authorising the "anti-fraud coordination task force" to offer_
_technical advice on_ _investigations_ _in other institutions._

Without amending the existing legal framework, these initiatives will allow
practices followed on a daily basis between services to be better established over
time.

2.3. Improvement in prevention

In the framework of the guidelines retained for sound and efficient management,
the Commission :

**12** **Commission communication** **of** **19.11.1998** **on sound and** **efficient** **financial and administrative** **management** **(C()M(97)2198,**
**19.11.1997).**

**13** **Council recommendation of 9 March 1998 on the discharge to be given to the Commission on implementation of the general**
**budget of the EC for 1996 (SN** **2017/98,9.3.98).**

**14** **Resolution concerning the discharge decision on implementation of the general budget** **of** **the European Union for the 1996**
**financial** **year (EP** **268.230/29,** **31.3.1998).**

**8**

_will continue to ensure_ _ex-ante_ _and ex-post_ _checks_ _on legislation taking account of_ _the_
_strategic and_ _operational_ _analysis carried out by the new "Intelligence, information and_
_evaluation of_ _legislation"_ _unit_

_will reinforce the continuity of financial follow-up of regional aid programmes to certain_
_non-member countries_ _(framework_ _contract)._

**2.4** **Administrative penalties**

**A policy of efficient detection of cases of** **fraud** **and irregularity presupposes the**
**strengthening of systems of administrative penalties to achieve an equivalent level**
**of deterrence throughout the Community.**

**Continuation of actions already begun:**

_in the area of traditional own resources, to put in place a system of_ _administrative_
_customs penalties in accordance with the legal framework laid down in Council_
_Regulation_ _(EC)_ _No_ _2988/95_ _J_ _[5 ]_

_in the area of direct_ _expenditure._

**2.5** **Completion of the comparative study on the implementation of Article 209a of**
**the EC Treaty.**

**Analysis of responses provided by the Member States to the Commission**
**questionnaire.**

_Production of a summary_ _report,_ _on checks carried out by the Member States and the_
_administrative_ _penalties_ _applied;_ _avenues to be explored in the light of the entry into force of the_
_Amsterdam Treaty_ _(Article_ _280_ _EC),_ _particularly_ _regarding administrative_ _penalties in the area of_
_the Structural Funds._

**2.6** **Convention and protocols concerning protection of the** **Communities'** **financial**
**interests** **[16 ]**

_Follow up of_ _implementation_ _and_ _ratification_ _of third pillar instruments by the Member_
_States._

_In application of Article_ _10,_ _comparative examination by the Commission of the_
_communication from Member States concerning provisions for the transposai of the_
_Convention_ _on protection_ _of_ _financial_ _interests_ _and its protocols._

**2.7** **Follow-up of the "Corpus Juris"**

**As requested by the European Parliament, the Commission has undertaken a**
**feasibility study on the "Corpus Juris". The aim is to assess its impact with regard**
**to the current situation of national law so as to identify the extent to which its**
**recommendations are feasible.**

**15**

**16**

**Council Regulation** **(EC) No** **2988/95** **of** **18 December** **1995** **concerning protection** **of** **the financial interests** **of** **the** **European**
**Communities** **(OJ L** **312,23.12.1995).**

**Convention** **on the** **criminal protection** **of the** **European** **Communities'** **financial interests** **of 26** **July** **1995; see in** **particular** **the**
**programme concerning organized crime (recommendation** **14)** **OJ** **C** **251,** **15.8.1997.**

_Detailed examination_ _of_ _the themes covered in the corpus juris, interim report (2nd half of 1998)_

_and finalisation_ _of_ _the study by July 1999._

_Exploitation_ _of_ _the results of the study and examination_ _of_ _the appropriateness of amplifying the_

_Community or Union legislative_ _framework_

#### **3 Section 3: Launching of targeted actions against certain types of** **economic crime harmful to specific Community interests**

**3.1** **Industrial, agricultural and commercial counterfeiting**

The Commission intends to strengthen its action [17] against infringements of
intellectual property (Community trademarks, product names) as long as there is a
risk to the health and security of consumers, particularly when organised
networks or rings are involved.

_In the context of the consolidation_ _of_ _the_ _internal market, the Commission_ _announced_ _the_

_publication_ _of a green paper on protection_ _of intellectual property and the fight_ _against_

_counterfeiting._ _On the basis of the responses provided to the green book, the Commission will_

_examine:_

_the role which it could play in improve cooperation from the competent authorities to_
_counter_ _traffic_ _in counterfeit_ _products_ _on the internal_ _market_ _more_ _effectively_
_(communication and exchange of information, setting up and management of_ _database,_
_establishment of a central cell and networks of contact points);_

_the appropriateness_ _of strengthening_ _its technical and operational_ _assistance_ _and_
_support role in the investigation of offences._

_x%_ Protection of monetary union and the euro

3.2.1 Information systems and mechanisms; cooperation between the competent
authorities; support and assistance of the Commission.

The protection of the new European currency against counterfeiting requires the
immediate setting up of a strategic and operational analysis system.

_Continuation_ _of work started_ _in the expert group_ _[18]_ _of the Advisory_ _Committee for_ _the_
_Coordination of Fraud Prevention with the aim of completing the evaluation of action required_
_and subsequently to put forward legislative proposals at Community or Union level._

On the basis of work started and the interim report produced by the expert
group, [19] the Commission will continue to examine the conditions, framework and
support required:

17

Without prejudice to reinforcement of actions in the framework of Council Regulation (EC) No 3245/94 of 22 December 1994
on counterfeiting (OJ EC L 341 of 30 December 1994) and Council Regulation (EC) No 515/97 of 13 March 1997 (OJ EC I
082 of 22 March 1997).

In close cooperation with the future European Central Bank (ECB), Europol and the International Criminal Police Office
(ICPO/Interpol).

**10**

_for the setting up of communication networks and a system of instantaneous exchange of_
_information for strategic and_ _operational_ _purposes;_

_to ensure the compatibility of_ _technical (ECU)_ _and police databases for the processing_
_and optimal_ _exploitation_ _of information._

_This work will be carried out in full cooperation with the ECB and the national issuing agencies_
_(notes and coins) to ensure the best operating conditions and the necessary compatibility in all_
_information_ _systems._

The Commission will also continue to reflect on:

_the conditions and demands required to put in place a framework of mutual assistance_
_and cooperation for the responsible national authorities, involving them and the_
_Commission_ _as_ _well_ _as other_ _Union_ _bodies_ _(Europol)_ _or international bodies (Interpol):_

_the initiatives to be_ _taken_ _to_ _provide the_ _means essential for the protection of_ _the euro_
_(training, financial support, the_ _Commission's_ _technical assistance_ _t<)_ _the_ _initional_
_authorities,_ _technical protection_ _and_ _security._

3.2.2 Regulatory framework and system for the protection of EMU

To ensure equivalent protection for the euro throughout the Economic and
Monetary Union, it is essential to design and set up an appropriate legal
framework [20] focusing more particularly on:

_exchange of_ _information_ _and_ _establishment_ _of_ _a_ _database,_

_close and_ _regular cooperation_ _and_ _mutual_ _assistance,_

_a definition of_ _counterfeiting_ _activities,_

_legal protection of the single_ _currency._

#### **4. Section 4: Putting in place conditions favourable for the** **protection of European finances in the framework of the** **enlargement of the Union and cooperation with non-member** **countries**

4.1 The effective implementation of the "partnerships" in integrating the anti-fraud
and anti-corruption dimension to facilitate the accession of the European Union
candidate countries must take account of the divergent situations in these
countries. The Commission will consequently adapt its approach, partnership
methods and programme timetables (road maps).

19

20

S(i/UCLAI [;] meeting paper of 17 March 1998 and Commission stall working document (SEC(9X)d24, 3 April I99X).

The protection of (he single currency in the framework ol the rapid introduction of (he euro comes mainly under "lust pillar"
initiatives. This docs not, however, rule oui a reduction on the possihlity of adding to the provisions taken in the Community
framework measures under the third pillar lor the criminal law protection of the single currency.

**11**

_Concerning protection of Community funds intended for rapprochement and cohesion of_
_economies, it is essential to draw lessons from the experience of the Community's fight against_
_fraud policy to:_

_establish with each of the applicant countries the priorities on which efforts will be_
_focused to achieve accession objectives;_

_integrate immediately the anti-fraud dimension into the short and medium term pre-_
_accession strategy initiatives;_

_establish as a daily practice cooperation between the competent authorities and the_
_Commission in both the sharing of information and_ _operational_ _action on_ _the_ _ground._

4.2 For this purpose, a series of concrete measures are or will be envisaged and
planned:

4.2.1 "Institution building"

Effectively taking on the Community acquis in the area of the protection of
financial interests will require a special effort from the applicant countries, in
particular in establishing administrations which meet the European Union's
objectives.

_Initiation of action in applicant countries to raise awareness of_ _Community_ _policy concerning the_
_protection_ _of_ _financial interests in accordance with the guidelines recommended by the European_
_Council to achieve an equivalent level of protection_ _(legislative_ _and operational_ _aspects)._

_Exchange of views with the applicant countries on the appropriateness of setting up_ _a_ _multi-_
_disciplinary anti-fraud_ _structure_ _at national level for_ _the_ _protection of the_ _Communities_ _'financial_
_interests._

_Development of the Commission's technical assistance with applicant countries for the protection_
_of the_ _Communities_ _'financial_ _interests._

4.2.2 Partnership

The establishment of a public administration adapted to the Union's objectives
requires appropriate assistance from the Commission in the areas of protection of
financial interests and anti-fraud policy. Following this approach, the "Anti-fraud
coordination Task Force" envisages making available experts to the responsible
authorities of the applicant countries so as to:

_offer these countries the consultancy services necessary to integrate the Community_
_acquis into their own legal systems and the assistance needed_ _to_ _facilitate the practical_
_implementation of_ _these_ _provisions by the_ _services_ _responsible;_

_to contribute to the technical evaluation and_ _reflection_ _linked to the development of_
_specific structures such as the training of_ _officials_ _in_ _the._ _area of_ _the_ _protection of_ _the-_
_Communities 'financial_ _interests;_

_to facilitate operational cooperation in_ _investigation_ _aimed at uncovering criminal_
_networks involved in frauds committed_ _against_ _the_ _Community 's_ _financial_ _interests._

**12**

In order to prepare officials in specialised services in applicant countries and raise
their awareness of the Community dimension of the fight against fraud and major
economic and financial crime [21], the Commission will propose:

_traineeships in services responsible for protection of financial interests and the fight_
_against_ _fraud;_

_the establishment of specific partnership with national bodies responsible for combating_
_counterfeiting to contribute to the protection of the future European single currency from_
_the pre-accession phase._

4.2.3 Approximation of legislation and taking on the acquis in the area of protection of
financial interests

Full acceptance of the Community acquis presupposes a number of progressive
adaptations during the pre-accession period and in particular the drafting of antifraud provisions (financial control protocols) for the implementation of
regulations concerning pre-accession funds with a view to:

_the application by applicant countries of obligations equivalent to those contained in the_
_Community_ _regulations_ _concerning notification of_ _irregularities;_

_the application of principles and detailed arrangements of the same type as those_
_contained in the on the spot checks and_ _inspections_ _regulation._

Preparation and adaptation of the national legislation of candidate countries for
the implementation of the Community and Union acquis with a view to:

_guaranteeing a level of protection in accordance with the EC treaty (Article 280):_

_ensuring criminal law protection in accordance with the provisions of the legal_
_instruments_ _adopted_ _in_ _the framework_ _off us t_ _ice and_ _home_ _affairs cooperation._

4.3 Strengthening of customs cooperation.

Given the future extension of the Customs Union to candidate countries and. in

particular, the Visegrad countries (Poland, Czech Republic, Slovakia and
Hungary), it is important to consolidate customs cooperation between the customs
administrations and between the latter and the Commission to:

_raise the level of surveillance and_ _cooperation_

_carry out monitoring of the transit regime.._

4.4 Establishment of the specialist investigation unit within the "anti-fraud
coordination Task Force"

_This unit will have the task of carrying out on-the-spot checks and_ _inspections_ _in partnership with_
_the responsible authorities in cases of_ _suspicion_ _of fraud in the area of direct expenditure, in_
_particular in the area of_ _the_ _financial support which is expected to grow significantly in the years_
_leading up to accession._

**21**

Complementary initiative to the coiifmuation of technical assistance action in (he customs area in the framework of the
PHARE programme.

**13**

**4.5** **Cooperation** **with non-member countries.**

_**Development of agreements or arrangements or administrative memoranda of**_
_**understanding with the**_ _**bodies**_ _**concerned.**_

_**Improvement**_ _**and**_ _**strengthening**_ _**of practical**_ _**cooperation.**_

**14**

### ISSN 0254-1475

## COM(98) 278 final

# **DOCUMENTS**

### EN 09 06 01 Catalogue number : CB-CO-98-3I0-EN-C ISBN 92-78-36043-0

**Office for Official Publications of the European Communities**

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