European Program Was Renamed to Security Program

62 Security program

In 2012 the European Program was renamed to Security Program. The new name reflects more accurately the long-term focus of the program on national and international security topics.

2012 Highlights:

• The Security Program concentrated its efforts in three main areas: 1) developing a serious and organised crime threat analysis in Bulgaria; 2) research on policies related to forfeited criminal assets; and 3) study of corruption in law-enforcement agencies, with specific emphasis or border police and criminal police.

• Assessing the threats of serious and organised crime in Bulgaria. An analysis of the criminal markets and of good practices in countering organised crime was developed and its results were published in the report Serious and Organised Crime Threat Assessment 2010 – 2011. In addition, a methodology for assessing those threats was developed addressing the needs of specialized agencies, and an education module based on it was designed to be utilized by professors and students at the Ministry of Interior Academy.

• Forfeited criminal assets. Another important focus of the Security Program was the study of good European practices in countering organised crime through uncovering money laundering operations, confiscating the proceeds from illegal activities, and their further use for social purposes.

• Anti-corruption measures and policies at law-enforcement agencies. A comprehensive review of good practices in cooperation between border police and customs administrations in applying anti-corruption measures at the EU external borders was completed as a follow-up to last year’s CSD research on the link between corruption and organised crime in the 27 EU Member States. This was the third EU-wide report commissioned by the EC in the area of Justice and Home Affairs successfully implemented by CSD.

• A start was given to an initiative of CSD to facilitate the exchange of best practices in countering police corruption among several EU Member States.

I. Assessing the threats of serious the levels and scope of criminal threats and organised crime in Bulgaria to the Member States and to formulate the political and operational priorities The year saw the completion of the Serious in countering organised crime. and Organised Crime Threat Assessment 2010 – 2011. It represents a first step in CSD’s report follows a different method- introducing this European instrument ological approach compared to previous as part of the EU-wide efforts to assess assessments (for example, the Ministry 63 of Interior’s national reports submitted opinion of both the general population to Europol in the framework of the col- and the business community. lection of data for Europol’s Organised Crime Threat Assessment). Building on the best European practices, the current report was made possible through cooperation with key law-enforcement agencies. In developing the report CSD experts benefited from the support of General Directorate for Combating Organised Crime (DGCOC), General SERIOUS AND ORGANISED Directorate Criminal Police (GDCP), the CRIME THREAT Customs Agency, the National Revenues ASSESSMENT Agency (NRA), and the State Agency for 2010 – 2011 National Security (SANS). Furthermore, a number of meetings and discussions were held with investigators from

CENTER FOR DGCOC and GDCP at regional offices, THE STUDY OF DEMOCRACY prosecutors, representatives of NRA and the Customs Agency, as well as with experts from the private sector. The back- ground work included interviews with Working on the Serious and Organised offenders directly involved in the crimi- Crime Threat Assessment 2010 – 2011, CSD nal markets covered by the report. The experts received methodological advice assessment used a wide range of public from a number of EU and international record sources, statistical data, as well law enforcement institutions: The UK as the results from the annual National Serious and Organised Crime Agency Crime Surveys (NCS), trending the (SOCA), the National Police Services

Opening of the discussion of the Serious and Organised Crime Threat Assessment 64

Presentation of the first Bulgarian Serious and Organised Crime Threat Assessment, from left to right: Mr. Anastas Anastasov, Deputy Chairman of the National Assembly and Chairman of the Internal Security and Public Order Committee, Dr. Ognian Shentov, CSD Chairman and Mr. Tsvetan Tsvetanov, Minister of Interior

Agency of the Netherlands, the Federal Organised Crime Agency, emphasized Judicial Police of Belgium, the Criminal the importance of the report for the Police of North-Rhine Westphalia, the development of European and US anti- Swedish Customs, Europol and the crime policies. United Nations Office on Drugs and Crime (UNODC). In his opening address Dr. Shentov, Chairman of CSD, stressed out that The report analyses the current state most countries of the European Union and trends in serious and organised and Europol now produce a national crime in the country, and gives a fore- threat assessment of organised crime, cast about future threats. These threats and that this evaluation is a standard are ranked according to the harm they tool for managing the security sector. cause to Bulgarian society. The analysis He explained that the Bulgarian SOCT is intended to support a better informed, A discusses and analyzes eight criminal evidence-based approach to anti-crime activities that represent the highest risk policies. and cause the greatest harm to society.

On 3 April 2012, the Internal Security The Deputy Chairman of the National and Public Order Committee hosted a Assembly and Chairman of the public presentation of the main conclu- Internal Security and Public Order sions of the Serious and Organised Crime Committee Mr. Anastas Anastasov not- Threat Assessment (SOCTA). The discus- ed that the Bulgarian SOCTA, although sion, attended also by representatives the first of its kind, is a significant con- of Europol and the UK Serious and tribution in combating crime. He ar- 65 gued that the analysis of the nature major trends were outlined – the frag- of organised crime shows that it is not mentation of big criminal structures enough to express readiness to oppose and hierarchies that were the defining it and to take certain actions with short- features of the heroin market, and the term effect. The experience of leading reduction in OC related violence. He EU partners and the analysis of our also emphasized that corruption related own experience prove that the strategy to the illegal distribution of drugs has for combating crime should be based on decreased. thorough knowledge of the targets, their strengths and weaknesses. “Even more Finally, Mr. Bezlov pointed out that the important during the current economic link between “white collar” and or- crisis”, he noted, “is to focus resources ganised crime is the major threat for on countering those sectors of organ- Bulgaria. Particularly, he highlighted ised crime that cause the greatest harm the risks from the corruptive influence to the state budget and society”. No less of the so called “oligarchs”. important is to establish the conditions that would help Bulgaria fulfil its part- The Secretary General of the Ministry ner responsibilities in contributing to of Interior Mr. Kalin Georgiev focused the implementation of the EU model of his presentation on the institutional proactive crime prevention. mechanism for the evaluation of threats, as well as actions taken to tackle organ- Mr. Tihomir Bezlov, Senior Analyst at ised crime in Bulgaria. He presented in CSD, presented the main findings of the detail the measures taken to counter SOCTA in Bulgaria. The study aims to the main threats identified in the SOC- show the status of major illicit markets TA report. Mr. Georgiev argued that the and activities without evaluating the security environment today is mainly counteraction taken by the law-enforce- determined by the inherently asymmet- ment authorities. The report is drawn ric risks and threats such as terrorism, on diverse sources of information: law- transnational organised crime, prolif- enforcement institutions analyses based eration of weapons of mass destruction, on intelligence information, statistics cyber crime and illegal migration. He and marketing data from surveys, in- noted that since 2009 the Ministry has terviews with offenders and police of- adopted a new, proactive approach to ficers, in addition to data from CSD’s combating organised crime. He stated annual National Crime Surveys. A map that a tipping point in countering organ- of the estimated size of markets and ised crime in Bulgaria has been passed. criminal activities was presented. Mr. He noted that the large structures in Bezlov also illustrated the relationship the market for illicit sex services that between legal, informal and criminal have exercised political influence before economies. He stated that the revenues have now disappeared, while organised of organised crime in Bulgaria amount criminal structures are fragmented. In to about EUR 1.7 billion, which rep- terms of future threats, Mr. Georgiev resents 4.7 % of GDP. These figures noted that the MoI is taking measures to show that the organised crime activities increase border security. He quoted the pose a serious threat. The most signifi- updated strategy of the border police cant threats outlined in the report were and the new operational plan to counter prostitution and trafficking of persons migration related crisis situations. for sexual exploitation, followed by VAT fraud, smuggling of excisable goods Mr. Alastair Woolley, Regional Manager, (fuel and cigarettes), and narcotics. Two Serious and Organised Crime Agency 66

Figure 7. Structure of revenues of organised crime in Bulgaria

(SOCA), talked about UK’s 10-year ex- Using the threat assessment, law en- perience in applying the threat assess- forcement bodies can react in a timely ment tool in combating serious and or- manner to newly emerging threats. ganised crime. He emphasised that the assessment is always the end result of Mr. Michel Quillé, Deputy Director, information gathering by national law Europol, expressed Europol’s support for enforcement bodies, European partners countering organised crime in Bulgaria. and other sources, and its purpose is to He presented the eight priority areas of identify the areas that require action, as the European policy for combating or- well as the ‘grey areas’ in the informa- ganised crime in the period 2011 – 2013, tion on organised crime. This enables based on the European Organised Threat both SOCA and Home Office to define Assessment (OCTA) of 2011. In 2013, the their priorities. The methodology serves first EU Serious and Organised Threat as the basis for more efficient distribu- Assessment (SOCTA) will be produced, tion of resources in times of economic along with a series of specific operation- crisis, and outlines the trend of threats. al plans. These steps will mark the be- 67

Mr. Michel Quillé, Mr. Alastair Woolley, Regional Manager, Deputy Director, Europol, Serious and Organised Crime Agency at the presentation (SOCA), at the presentation of the of the Bulgarian SOCTA Bulgarian SOCTA ginning of the next period, 2013 – 2017 ness of investigations. He emphasised in the fight against international serious the importance of setting up specialised and organised crime. Mr. Quillé under- units dealing with serious and organ- scored that the only way to tackle this ised crime, and the introduction of fast- problem is through identification of the er jurisdiction. As a result of political threat, and that the contribution of ana- and expert discussions on cybercrime, lysts working outside professional or- the number of people in the cybercrime ganisations is particularly important. unit has been doubled. Institutional cooperation with the prosecution and the Interior Minister Tsvetan Tsvetanov courts concerning the traffic of people thanked CSD for the preparation of the has also been improved. The number of threat assessment, and noted that this effective sentences has increased. These is the first document aiming at the de- practical measures, and the results they velopment of a strategy to combat or- achieved, have restored the confidence ganised crime based on analysis and of Bulgaria’s Euro-Atlantic partners. partnership. As these threats are com- International cooperation is further mon for the whole EU, joined efforts are strengthened through collaboration of required within the Euro-Atlantic part- Bulgarian officers with officers from nership. The minister discussed further partner states, and with Eurojust and the efforts of the government to create Frontex. Regional cooperation is also an adequate legal framework that would improving, with the inclusion of Turkey allow the setting of specialised courts, and the west Balkan countries. Minister prosecutors and investigation units in Tsvetanov pointed out that the report is the General Directorate for Combating yet another evidence of the partnership Organised Crime, and the reform in the between the law-enforcement agencies MoI designed to enhance the effective- and the non-governmental sector. 68

Ms. Alenka Prvinsek, Senior Advisor, International Centre for Migration Policy Participants in the round table on the Use of Wiretaps in the Investigation of Organised Development, Vienna, at a round table on migration and trafficking of people at CSD Crime and Corruption, held at CSD on 20 February 2012

The final version of the Serious and to the establishment of good coopera- Organised Crime Threat Assessment 2010- tion with the countries in the Black Sea 2011 was preceded by several expert region, with a focus on combating irreg- round-tables where additional assess- ular migration, trafficking in human be- ment methods were discussed. ings, strengthening border management and security of documents. The presen- On 9 February 2012, CSD held a round tation stirred up a discussion related table discussion entitled Migration to Bulgaria’s upcoming accession to Policies and Trafficking in Human the Schengen Agreement, the impact it Beings – Opportunities for Regional would have on irregular migration, and Cooperation. The guest speaker was the role of ICMPD in developing tran- Ms. Alenka Prvinsek, Senior Advisor, snational referring mechanisms to con- International Centre for Migration tain and counter migration pressures. Policy Development (ICMPD) in Vienna, who made a presentation on ICMPD ac- On 20 February 2012, CSD held a round tivities, structure and challenges with table on the Use of Wiretaps in the regard to migration. She outlined the Investigation of Organised Crime and importance of the Budapest process in Corruption. Special guest was Mr. Peter identifying effective models to cope with Ainsworth, Senior Deputy Chief, Public changes in migration pressures. The role Integrity Section, Criminal Division, of Bulgaria as a chair of one of the work- U.S. Department of Justice. The issues ing groups was emphasized with regard discussed were related to the problems 69

that the Bulgarian judiciary faces in tack- evidence about the continuing need ling issues of corruption and organised for the use of wiretaps; crime, especially when it comes to high- • The strategy for minimization of ranking officials. The role and jurisdic- wiretapping of personal information tion of the newly established specialized not relevant to the investigation (in- court in Bulgaria was discussed. cluding technical means to do so); • The mandatory notification of all in- Mr. Ainsworth shared experience on dividuals who have been wiretapped the use of wiretaps as well as the legal after the conclusion of the investiga- restriction of their use in conducting tion. criminal investigations in USA. Mr. Ainsworth explained that the number In addition, he mentioned the issue of of wiretaps is not monitored, as there cost of wiretaps as another restriction exists a comprehensive system of pro- on their extensive use. Mr. Ainsworth tections aimed at reducing the abuse of also emphasized the role of the media in wiretaps. These included: preventing the discontinuation of high- profile corruption investigations. • The requirement of a court sanction for each use of wiretap; On 21 February 2012, CSD held a round • The need for frequent (often weekly) table entitled Measuring Progress updates of the court about the on- against Transnational Organised going investigation, and presenting Crime. Special guests were Ms. Jennifer 70

Rubin, Director, Communities, Safety On 23 February 2012, CSD held a round and Justice Programme, RAND Europe table focusing on the impact assessment and Ms. Emma Disley, researcher at process employed by Matrix Insight, the same program. In her presentation UK. The special guests at the event were Ms. Rubin elaborated on the challenge Mr. Usman Khan, Managing Director of measuring transnational organised and Ms. Gabriele Birnberg, Principal crime. The evaluation of such measures Consultant at Matrix Insight, UK. They is essential when it comes to the impact familiarized the audience with the that law enforcement interventions have company organizational structure and with regard to countering transnational its areas of consultancy. Mr. Khan and organised crime. Over the last years ef- Ms. Birnberg presented methodologi- forts have been directed towards the cal aspects and key findings of selected development of new strategies, policies projects of Matrix Insight’s Crime and and approaches to measure wider areas Justice unit. The dedicated team has of criminal activities and illicit markets. conducted a number of research stud- She underlined that the research of larg- ies, evaluations and impact assessments er data sets and development of clusters related to the European Commission’s of indicators facilitate the building up and its agencies’ public and internal af- of the full picture of transnational or- fairs policies in the field of fraud preven- ganised crime as well as the interaction tion, immigration and asylum, illegal among various illegal markets and the drug trade, procedural law and victims’ licit economy. rights. One of the examples provided by

Dr. Jennifer Rubin, Director, Communities, Safety and Justice Programme, RAND Europe, at a round table at CSD on Measuring Progress against Transnational Organised Crime 71

Ms. Gabriele Birnberg, Principal Consultant and Mr. Usman Khan, Managing Director, Matrix Insight, UK, at a round table on impact assessment at CSD the guests was a research study on the Mr. Rosen Bosev, investigative journal- economic aspects of drug distribution in ist at Capital weekly, and included Dr. the UK. Matrix Insight collected and an- Gounev, Mr. Tihomir Bezlov, Senior alyzed data on drug transaction ‘cycles’ Analyst at CSD, and Mr. Pierre Salduci, based on interviews with incarcerated Customs Attaché for the Balkans of the UK drug dealers. French Customs. The discussion was attended by representatives of the Chief Mr. Khan presented the phases involved Directorate for Combating Organised in delivering a high quality impact as- Crime, Internal Security Directorate of sessment and its impact on developing the Ministry of Interior, the Customs policies at national and EU level. Ms. Agency, the Specialised Prosecution Birnberg touched upon the methods for Organised Crime, and the Supreme used in delivering an impact assess- Cassation Prosecution. ment, as well as the differences between impact assessment and evaluation. Dr. Gounev and Mr. Bezlov outlined the main issues related to historic, cul- On 3 July 2012, at the Red House Centre tural, economic and political factors that for Culture and Debate in Sofia, CSD influence the way in which organised presented the new book Corruption criminals use corruption across Europe. and Organised Crime in Europe: Illegal They emphasized the different concep- Partnerships (London: Routledge, 2012), tual discourses on corruption and or- edited by CSD’s Senior Analyst Dr. ganised crime, in particular how crimes Philip Gounev and by Prof. Vincenzo of the elites, or white-collar crimes, are Ruggiero of Middlesex University UK. treated. Mr. Salduci explained how the The discussion panel was mediated by political-criminal nexus in Marseille 72

From left to right: Mr. Tihomir Bezlov, Senior Analyst at CSD, Dr. Philip Gounev, Senior Analyst at CSD, Mr. Rosen Bosev, Investigative Journalist at Capital weekly, and Mr. Pierre Salduci, Customs Attaché for the Balkans of the French Customs and Corsica functions, and the histori- lyse the main historic, cultural, eco- cal and cultural factors that support the nomic and political factors that influ- corrupt environment in the region. ence the ways in which organised and white collar criminals use corruption. Combining empirical data and theoreti- cal debates, the book focuses on three main areas of the relationship between corruption and organised crime: public bodies, the private sector and criminal markets. The second part of the book presents case studies, written by some of the foremost international experts on the subject matter, analysing corrupt exchange and criminal organisations, con- centrating on several European countries – Bulgaria, France, Greece, Italy, Russia, Spain and the UK.

II. Forfeited criminal assets

The Management and disposal of proceeds from illegal activities is another The book Corruption and Organised Crime CSD research effort focusing on the in Europe: Illegal Partnerships (London: Italian anti-crime experience, follow- Routledge, 2012) builds upon the 2009 ing the CSD publication of the reader report of CSD Examining the Links be- Antimafia. The Italian Experience in the tween Corruption and Organised Crime. Fight against Organised Crime (2011). An This is the first academic study that overview of the Bulgarian asset recov- takes a Europe-wide approach to ana- ery system and a survey of public at- 73 titudes on this issue permitted to draw It stresses that confiscation of proceeds comparisons with Italian law enforce- from illegal activities is a widely ap- ment system and the anti-Mafia leg- plied mechanism in combating organ- islation. Expert discussions produced ised crime: “The introduction and appli- several recommendations to amend the cation of this mechanism is defined in Law on Forfeiture of Proceeds from Crime, several international and European acts, published in a Policy Brief. and is motivated by the need to restore social justice.”

A national representative survey of pub-

lic attitudes towards the management MANAGEMENTANDDISPOSALOFCONFISCATEDCRIMINALASSETS and disposal of confiscated real estate

PolicyBriefNo.33,February2012 property was carried out. It revealed

Confiscation of proceeds from illegal activities is a KEYPOINTS widely applied mechanism in combating organized crime. The introduction and application of this ¾ The management and disposal of confiscated that despite poor publicity of the possi- mechanism is defined in several international and assets are important aspects of the overall European acts1, and is motivated by the need to process of confiscation, but they still remain restoresocialjustice. marginaltothepublicdebateinBulgaria. ¾ The existing legal and procedural gaps impede bility for re-use of confiscated real estate Both the UN Convention against Transnational the effective management of confiscated property, frequently causing its plundering or Organized Crime and the UN Convention against demolishing. Corruption2addressthedisposalofconfiscatedassets ¾ The sale of confiscated real estate is further for social purposes, this was the option and recommend its use primarily for compensating complicated by problems with mortgages and thevictimsofcrime.AnumberofEuropeancountries executive charges, incomplete property have implemented respective measures and documentation,reputationoftheformerowner, mechanisms like: distribution schemes for andunfavourablemarketconditions. that most of the respondents supported: compensation of victims of crime, financing of ¾ The Bulgarian legislation concerning the allocation of proceeds from the sale of programs for fight against drug use, social reͲuse of confiscated property is not in compliance with property. confiscated the relevant ratified UN conventions, which recommend using these revenues for compensationofthevictimsofcrime. ¾ The legal possibilities provided by Bulgarian law 1TheUNConventionagainstTransnationalOrganizedCrime for reͲuse of confiscated property for socially The analysis of existing policies and (15.11.2000), The UN Convention against Corruption (31 beneficial purposes are seldom applied and are October 2003), The Council of Europe Convention on not sufficiently publicised among the potential Laundering, Search, Seizure and Confiscation of the beneficiaries. ProceedsfromCrime,Decision2007/845/JHA(06.12.2007) ¾ Amongtheimportantlegislativegaps isthelack procedures of disposal of forfeited as- , oftheCounciloftheEuropeanUnion FrameworkDecision of a specific procedure for the transfer of 2006/783/ (06.10.2006)of the Council of the European confiscatedrealestate.Theintroductionofsuch Union,etc. an instrument could facilitate the utilization of

2 theseassetsforthepublicbenefit. sets outlined the following problems: Article14fromtheUNConventionagainstTransnational Organized Crime and article 57 of the UN Convention againstCorruption. • legal and procedural gaps related to the safeguarding of the forfeited

Figure 8. What should the state do with the confiscated real estate property?

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Source: CSD Survey, 2012. 74

property; Common EU Standards), coordinated • missing or incomplete property acts; by the Palermo University and including • existing mortgages on confiscated FLARE Association (Italy), the Italian real estate; National Agency for the Administration • reputational issues related to previ- of Assets Acquired from Criminal ous owners; Activity, and the UNICRI Institute • poor market environment. (Torino, Italy). The project will analyse the experience of the EU-27 Member A good part of these problems is related States and will develop common to the use of public tenders as the pre- European standards for the re-use of ferred forfeiture mechanism. Although confiscated assets for social purposes. it exists as an optional procedure, disposal of forfeited property for social * * * purposes is seldom used. In January 2012 a draft law to amend the existing Duty-Free Trade Law was sub- The analysis stressed that the re-use of mitted to the National Assembly with forfeited property, which is widespread the aim to reinstate the Duty-Free Trade in countries like Italy, is beginning to at Bulgarian Land Borders (only at the appeal to a number of municipalities, EU external borders), which would en- institutions and NGOs. However, a ma- able the old operators to re-open their jor drawback is the inability of most of Duty-Free shops, closed back in 2008. Bulgarian municipalities and NGOs to afford the renovation and reconstruc- Since the early 1990s the duty-free shops tion works needed if they receive a for- along Bulgaria’s land-border crossings feited property. have been used as a channel for illegal import of excise goods (cigarettes, al- The main findings and recommenda- cohol and petrol). With the increase of tions from the study, including ideas to excise and VAT taxes in the second-half amend the existing law, were presented of the 1990s, the risk of alcohol and ciga- at a session of the Internal Security and rettes smuggling increased rapidly. The Public Order Committee of the National duty-free shops gradually evolved into Assembly dedicated to the discussion of one of the main channels for the smug- future amendments of the Forfeiture of gling of cigarettes, alcohol, and fuel. At Criminal Proceeds Act. that period, duty free operators existed without a legal regulation but only with In November the results of the study a licensing permit from the Minister of were also discussed at a specialized Finance. The smuggling was tacitly tol- workshop in Zagreb, attended by rep- erated from the highest political level. resentatives of the Legal Committee of the Croatian Parliament, the Ministry of Duty-free stores on the borders with Justice and the Agency for Managing of Romania and Greece were finally shut State Property, in addition to the Italian only when Bulgaria joined the EU in project partners. 2007. Under further international, EU and US pressure, and due to the grow- Building upon its experience in the sub- ing evidence of contraband activity, in ject area of disposal of forfeited assets 2008 the government closed the remain- from illegal activities, in 2012 CSD start- ing duty-free shops and petrol stations ed a new EU-wide, multi-partner study, selling tax-free fuel along Bulgaria’s RECAST (The Re-Use of Confiscated (which also became EU’s) land borders Assets for Social Purposes: Towards with Macedonia, Serbia and Turkey. 75

quires an additional importance in the current financial and economic crisis and the ensuing security risks to Member

REINSTATINGTHEDUTYͲFREETRADEATBULGARIANLANDBORDERS: States. Following the highly appreci- POTENTIALSETBACKINTHEFIGHTAGAINSTORGANIZEDCRIMEAND CORRUPTION ated CSD research Cooperation between PolicyBriefNo.32,January2012 Border Police and Customs Administrations

Anoldghostrevived KEYPOINTS Since the early 1990s the dutyͲfree shops along Aiming at Better Management of the ¾ InJanuary2012,aproposaltoamendtheDuty Bulgaria’s landͲborder crossings were used as a Free Trade Act was submitted to the channelforillegalimportofexcisegoods(cigarettes, Parliament by an independent MP (Emil alcohol and petrol). With the increase of excise and Vasilev, formerly of the marginal opposition External Borders of the European Union party Order, Law and Justice). The sole VATtaxesinthesecondͲhalfofthe1990s,theriskof purpose of the proposed amendment is to alcohol and cigarettes smuggling increased rapidly. allowforthereopeningofthedutyͲfreetrade ThedutyͲfreeshopsgraduallyevolvedintooneofthe outletsatBulgaria’slandborderswithnonͲEU main channels for the smuggling of cigarettes, (2011), the Security Program completed countries in the exact same format with the alcohol,andfuel.Atthatperiod,dutyfreeoperators exact same operators as at the time of their existed without a legal regulation but only with a closurethreeyearsago; licensing permit from the Minister of Finance. The in 2012 a new study, Anti-corruption ¾ The proposal is a major threat to border smuggling was tacitly tolerated from the highest security, tax revenues and might undermine politicallevel. thestabilityofthestatebudget; Asaresult,until2008themarketsforexcisablegoods Measures in EU Border Control, commis- ¾ The reopening of the dutyͲfree shops would in Bulgaria were flooded with illegal cigarettes and reversetheprogressmadeinthefightagainst alcohol and millions of liters of exciseͲfree fuel. In corruption,organizedcrimeandexcisegoods border areas thousands of local people were smugglingandthreatenstoreͲkindlepolitical sioned by Frontex (European Agency engaged in smuggling of small quantities of excise corruptionandclientelism. goods and petrol. Over the years, this created a specific environment, corrupting the social fabric of the local community, nurturing local oligarchs and for the Management of Operational aiding organized crimenetworkspenetration. At the political corruption to secure perpetual monopoly national level illegal proceeds from dutyͲfree trade business positions to a selected wellͲconnected havebeendeployedtocapturethestate,using few. Legal regulation of duty free trade was first Cooperation at the External Borders of the Member States of the European Union).

The continuous hikes of excise taxes in The study provides academic and pol- 2010, mandated by EU harmonization icy perspectives, as well as empirical legislation, in combination with the ef- data on corruption and anti-corruption fects of the economic crisis on domestic measures observed in border guard in- consumption, have led to a new rise of stitutions across the 27 Member States illegal sales and smuggling of cigarettes of the European Union. The report and fuel. This growing dependence of compares and analyses anti-corruption the budget on the excise goods trade measures in EU Member States’ border and further looming risks motivated guard services, as well as the strategies an initiative to formulate counter-argu- and instruments used in corruption in- ments to the amendment, submitted to vestigations of border guards. the Assembly.

* * * In 2012 CSD carried out its annual National Crime Survey. Due to methodological issues with the verification of data, however, it was decided to post- pone the publication of its findings until after the 2013 survey provides a solid ANTI-CORRUPTION MEASURES basis for identifying the trends in con- ventional crime. IN EU BORDER CONTROL

III. Anti-corruption measures and policies at law-enforcement

CENTER FOR agencies THE STUDY OF DEMOCRACY

1. Anti-corruption measures in EU border control The study concluded that countering Exerting an effective control over both corruption in the public security sector the EU internal and external borders ac- requires a concerted effort involving nu- 76 merous institutions and relevant legisla- 2. Enhancing Police Internal Affairs tion. Successful measures to counter cor- Departments in EU Member States ruption are based on a broad anti-cor- (ENPIAD) ruption “infrastructure” that includes accountability measures for public Countering corruption among police servants, public procurement laws and officers is a priority not only for the procedures, penal policies, anti-money- European Union but also for a number laundering legislation, and investigation of international organizations, includ- of other institutions that may be exerting ing UNDC, OECD and the Geneva a corrupting pressure over police offic- Center for Democratic Control of Armed ers (e.g. politicians or judiciary). Forces (DCAF). These institutions have developed their own manuals for as- While many MS across the EU have sessing police integrity and undertake policies, institutions, and practices to periodically assessments of the impact combat corruption in their border guard of anti-corruption measures and good services, there are very wide differences institutional practices in preventing and across the Union in the specific forms countering police corruption. these take. Perceptions of the extent and seriousness of the problem of corruption Police corruption can take various also vary considerably across Europe. forms: petty bribes, bureaucratic cor- Moreover, the pressures and causes of ruption, selling internal information to corruption also diverge widely across criminals, undermining investigations, the EU. political corruption, etc. All these corruption practices should be countered With the expansion of the Schengen through the use of preventive and pro- area, most EU MS are dependent to active anti-corruption measures. Since some extent on the controls carried out 2004 CSD works in partnership with by the border guard services of other the Ministry of Interior, the European MS. Thus, there is an obvious need for Commission, Frontex and leading aca- harmonization of the perception of risks demic institutions on the task of assess- associated with corrupt practices and ing the causes and risks stemming from the best response to these risks. police corruption and in designing anti- corruption measures. To this end, the EC, Frontex and MS should at a minimum agree to place In 2012 CSD started a joint initiative the issue of corruption in the guarding “Enhancing Police Internal Affairs of the external borders of the European Departments in EU Member States Union on the political and institutional (ENPIAD)”, together with the General agenda. Corruption should be factored Anti-Corruption Directorate of the in the assessments of risk on a regular Romanian Ministry of the Administration basis. An ongoing dialogue should fo- and the Interior, the Belgian Federal cus on the basic common principles to Police, the General Inspectorate of the be applied when addressing the risk Belgian Police, and the UK Serious and of corruption in border guard services Organised Crime Agency (SOCA). across the EU. This would allow the adoption and adaptation to local condi- The aim of the initiative is to establish tions of anti-corruption measures that close relations between the internal af- ensure a harmonized understanding of, fairs departments of police forces in and fight against, what is a serious and Bulgaria, Romania, the UK and Belgium, widespread problem. and to study their best practices in coun- 77 tering police corruption and developing a mechanism for regular assessment of analytical anti-corruption tools. In 2012, anti-corruption in the Member States. several workshops were organized in London, Brussels and Vienna. Their aim DG Home, supported by CSD, organ- was to exchange experience and good ised on 11 December, 2012, in Sofia a re- practices, in addition to designing a pro- gional informational seminar, to share gram and curricula for the educational with EU MS the ongoing work of the courses for Bulgarian and Romanian Сommission on the anti-corruption re- police officers due to take place in 2013. port and to discuss with representatives of government institution and civil soci- 3. Regional seminar on the EU ety their specific experience with coun- Anti-corruption Report trering corruption, including best practices and negative lessons learnt from During the past several years the EC national anti-corruption efforts. recognised the negative impact of the economic crisis in Europe on the stabil- Anti-corruption experts from 14 EU MS ity of the public sector. Every year, EU took part in the seminar, representing Member States suffer significant losses the public administration, academic due to corruption. community, civil society, business and media. As a part of the overall efforts to address this problem, in mid 2013 the EC will The seminar was opened by Ms. publish its firstEU Anticorruption Report. Ms. Maria Åsenius, Head of Cabinet The report is based on the June 2011 de- Commissioner Cecilia Malstrom, Dr. cision of the EC for the introduction of Ognian Shentov, Chairman of CSD, and

At the seminar on EU Anti-corruption Report, from left to right: Ms. Maria Åsenius, Head of Cabinet Commissioner Cecilia Malstrom, Dr. Ognian Shentov, Chairman of CSD, Mr. Tsvetan Tsvetanov, Deputy Prime Minister and Minister of the Interior, and Mr. Jakub Boratynski, Head of Unit “Fight against Organised Crime” at DG Home Affairs 78

Mr. Tsvetan Tsvetanov, Deputy Prime Ms. Qi Wei, Senior Program Manager, Minister and Minister of the Interior. Mr. Wang Hao, Program Manager and Ms. Fei Ting, Secretary to H.E. Mr. Mao * * * Rubai. The Embassy of China in Sofia On 3 October 2012 the Center for the was represented by Mr. Jia Li, Deputy Study of Democracy hosted for a sec- Head of Mission and Counselor, and ond time a delegation from the China Ms. Gu Fang, First Secretary of the Center for Contemporary World Embassy. Studies (CCCWS). The delegation was headed by Professor Jin Xin, CCCWS Deputy Director accompanied by Mr. Mr. Mao Rubai presented the activities Gao Lianjia, Ms. Wang Xiaoyming and of the Chinese Foundation for Peace and Mr. Sun Binghui, Research Fellows at Development. He stressed on the fact the CCCWS and Mr. Zhou Rongshui, that although the organization is rela- Third Secretary at the Chinese Embassy tively young, it has a high professional in Bulgaria. The visit was initiated on capacity and significant experience in the recommendation of Professor Yu the field of international relations. The Hongjun, President of CCWCS, who mission and purpose of CFPD is striv- was leading the first delegation visiting ing for world peace and prosperity that Bulgaria in May 2011. CFPD aspires to through its increasing network of partners and implementation On 17 December 2012 a delegation from of numerous charity projects around the the China Foundation for Peace and world in the sphere of education, better Development (CFPD) headed by Mr. health care and many others. Mao Rubai, Specially Invited Adviser of CFPD and Chairman of Environmental Specific thematic areas and formats for Protection and Resource Conservation potential collaboration between the two Committee of the 10th National People’s organizations were discussed. Such a Congress visited the Center for the format could be the Annual Peace and Study of Democracy. The delegation also Development Forum of CFPD which included Mr. Liu Zhongxiang, Specially gathers together non-governmental or- Invited Director of CFPD, Mr. Ji Ping, ganizations from all over the world. Deputy Secretary-General of CFPD,