European Anti-Fraud Office A Brief Overview “To gain the trust of European citizens and to protect their money, the European Union must fight fraud and corruption. OLAF has a key role to play in winning that fight.” Statement from Giovanni Kessler, Director-General of OLAF © European Union © European The European Anti-Fraud Office, its mandate and resources stablished since 1999 and based in Brussels, the European Anti-Fraud Office (OLAF) is on the front line in the fight Eagainst fraud, corruption and any other illegal activity affecting the financial interests of the European Union. OLAF is a directorate-general of the European Commission that 9 protects the financial interests of the European Union (EU) by investigating fraud, corruption and any other illegal activities; © Brand X Pictures © Brand 9 detects and investigate serious matters relating to the discharge of professional duties by members and staff of the “OLAF” is the EU institutions and bodies that could result in disciplinary or acronym of its title criminal proceedings; in French: “Office 9 supports the European Commission in the development and européen de Lutte implementation of fraud prevention and detection policies. Anti-Fraude”. Many of OLAF’s approximately 430 multidisciplinary staff members have prior professional experience as magistrates, customs officers, police officers, tax inspectors, financial controllers, auditors or intelligence experts. © European Union © European Conducting investigations INDEPENDENCE OLAF is administratively part of the European Commission. However, in its investigations, it is fully independent. OLAF investigations are conducted under the authority of the Director-General in full independence from any government or the EU institutions, bodies, offices and agencies. Moreover, the Director-General is entitled to bring an action against the Commission before the European Court of Justice. EXAMPLES of OLAF investigations on cases of fraud 9 Irregular use of European Union funds for projects in areas such as external aid, agriculture, environment, etc 9 Evasion of customs duties and taxes by importers 9 Smuggling of cigarettes by organised crime groups 9 Embezzled external aid offered for a construction project 9 Financing of nonexistent agricultural products (fruit juice, trees never planted, etc.) Since its establishment, OLAF has conducted EXAMPLES of OLAF investigations on cases 3 500 investigations. As of professional misconduct a result, € €1.1 billion has been recovered and 9 Irregularities in tender procedures 335 individuals received 9 Conflicts of interest prison sentences for a 9 total of 900 years by Leaking selection test questions and model Union © European answers courts in the Member States. The investigative process Information received: ȉpublic sector sources Director-General (including EU institutions and opens/dismisses Member States) a case ȉprivate sources (including citizens, private sector and whistleblowers) The Investigation Selection and Review DG’s Unit provides an opinion on the decision opening or dismissal of a case based on whether the information: ȉIDOOVZLWKLQ2/$)ȂVFRPSHWHQF\WRDFW ȉLVVXȿFLHQWHQRXJKWRRSHQDQ investigation ȉIDOOVZLWKLQ,33 LQYHVWLJDWLRQSROLF\ priorities) SELECTION PHASE CASE DISMISSED NO RECOMMENDATIONS Director- InvestigationIn General issues 1.1. Investigative recommen dations activities include: for actions ȉȉLQWHUYLHZV to be taken ȉȉLQVSHFWLRQVRI premises REPORTRTT ȉȉRQWKHVSRW checks Recommendations: Monitoring of the ȉIRUHQVLFRSHUDWLRQV ȉLQYHVWLJDWLYHPLVVLRQVLQQRQ(8 ȉjudicial implementation of countries DG’s ȉdisciplinary recommendations: 2. Legality check of investigative activities ȉfinancial ȉcriminal and conclusions recommen- ȉadministrative investigations dation Final report transmitted ȉprosecutions and Coordination to the EU institutions, convictions bodies, offices, agencies Coordination of the ȉfinancial recoveries or Member States anti-fraud activities ȉdisciplinary concerned of the Member measures States INVESTIGATION PHASE MONITORING PHASE Fraud prevention and detection policies OLAF is actively engaged in the following key processes: OLAF manages programmes and tools to promote its policy 9 3UHSDULQJDQGQHJRWLDWLQJOHJDOLQLWLDWLYHV objectives. to reinforce the protection of the EU’s financial interests, including on the Hercule is a programme dedicated establishment of a European public to fighting fraud, corruption prosecutor’s office. and any other illegal activities affecting the financial interests 9 Supporting the other Commission of the EU. Annual budget: departments and EU Member States in approximately €15 million the prevention and detection of fraud, Pericles drawing on its experience and expertise. is an exchange, assistance © European Union and training programme to strengthen the protection of euro 9 Contributing to a strategy to provide a banknotes and coins in Europe comprehensive response at EU level to and worldwide. Annual budget: illicit trade in cigarettes which causes approximately € 1 million significant losses to public revenue. Anti-Fraud Information System (AFIS) 9 Managing the Anti-Fraud Information offers tools System (AFIS), as well as the Hercule and to improve cooperation with 3HULFOHVSURJUDPPHVWRVXSSRUWWKHILJKW partners, including other against fraud and corruption. institutions, Member States, international organisations and non-EU countries. Annual budget: approximately € 6 million. © STOCKDISC Cooperating with partners OLAF concludes administrative Anti-fraud action requires multidisciplinary cooperation with: cooperation arrangements 9 Competent authorities of the Member States (including administrative/control bodies, with its partners in order police and customs offices) to facilitate day-to- 9 Judicial authorities of the Member States day cooperation. Such 9 EU institutions, bodies, offices and agencies arrangements may notably 9 7KH(XURSHDQ8QLRQȂV-XGLFLDO&RRSHUDWLRQ8QLW (XURMXVW DQG(XURSHDQ3ROLFH2IILFH concern the transmission (Europol) 9 Authorities in countries outside the EU (including investigative services, specialised anti- of information and the corruption/control/audit bodies and prosecutors’ offices) conduct of investigations. 9 Investigative services of international organisations and international financial institutions Most of the EU money is administered at national level or channelled via international organisations. OLAF therefore relies on the powers, knowledge of national judicial requirements and local conditions of its partners in its investigations. OLAF offers its knowledge of EU law, powers to access the EU institutions and experience with the cross-border aspects of investigations to its partners. © Brand X Pictures © Brand OB-30-12-789-EN-C Communicating with OLAF How to get in touch with OLAF 9 Online form to report fraud via the Fraud Notification System: https://fns.olaf.europa.eu/ 9 Online form for general enquiries: WHISTLEBLOWERS http://ec.europa.eu/anti_fraud/contacts/general-enquiries/index_en.htm 9 Online form to request a visit to OLAF: Officials and Agents working for any of the http://ec.europa.eu/anti_fraud/contacts/request-visit/index_en.htm EU institutions have an obligation to report 9 By phone: +322 2991111 (general switchboard) possible fraud, corruption, other illegal activity, or 9 By post: OLAF – European Anti-Fraud Office - European Commission - professional misconduct of an official/agent. Rue Joseph II, 30, 1000 Brussels, Belgium Whistleblowers respecting the staff regulation on this matter will be protected from adverse consequences. This covers the protection of the identity of the whistleblower, as well as the mobility and staff report of the person concerned. How to find out more about OLAF Naturally, in order to be able to apply such protective measures, the person concerned will Additional and regularly updated need to identify him/herself to the Institution. information about OLAF’s activities is Whistleblowers must either inform their hierarchy available on OLAF’s website: or OLAF directly about their suspicions. http://olaf.europa.eu © European Union © European.