{"id":12525,"date":"2022-07-30T20:08:02","date_gmt":"2022-07-30T20:08:02","guid":{"rendered":"http:\/\/legalblog.ie\/?p=12525"},"modified":"2022-09-25T07:32:38","modified_gmt":"2022-09-25T07:32:38","slug":"eu-financial-interests","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/eu-financial-interests\/","title":{"rendered":"EU Financial Interests [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Fight_against_fraud\" title=\"Fight against fraud\">Fight against fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Scope\" title=\"Scope\">Scope<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Definitions\" title=\"Definitions\">Definitions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Common_approach\" title=\"Common approach\">Common approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Sanctions\" title=\"Sanctions\">Sanctions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Cooperation\" title=\"Cooperation\">Cooperation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Application\" title=\"Application\">Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/eu-financial-interests\/#Documents\" title=\"Documents\">Documents<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Fight_against_fraud\"><\/span>Fight against fraud<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>to the EU\u2019s financial interests by means of criminal law<\/p>\n<p>Directive (EU) 2017\/1371 \u2014 using criminal law to protect the EU\u2019s financial interests<\/p>\n<p>To create a stronger and more harmonised system, with minimum common rules, to fight crime affecting the EU budget.<br \/>\nTo better protect the EU\u2019s financial interests and taxpayers\u2019 money across the EU.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Scope\"><\/span>Scope<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The directive concerns:<\/p>\n<p>fraud and other criminal offences, such as corruption, misappropriation or money laundering, affecting the EU\u2019s financial interests \u2014 i.e. the EU budget, the budgets of the EU institutions, bodies, offices and agencies established by the treaties, or the budgets directly or indirectly managed and monitored by them;<br \/>\n\u2018serious offences\u2019 against the common value added tax (VAT) system, like VAT carousels* (offences considered to be serious when they are connected with the territory of two or more EU countries and involve a total damage of at least \u20ac10,000,000).<br \/>\nIt also sets out common rules on sanctions and limitation periods in relation to the criminal offences covered by this directive.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Definitions\"><\/span>Definitions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Each of the following offences is given a definition at EU level:<\/p>\n<p>fraud committed intentionally \u2014 what is regarded as fraud in respect of expenditure as procurement and non-procurement as well as of revenue arising from VAT own resources and other revenue;<br \/>\nmoney laundering as defined in Directive (EU) 2015\/849;<br \/>\npassive and active corruption committed intentionally;<br \/>\nmisappropriation committed intentionally.<\/p>\n<p>What is meant by \u2018public officials\u2019 \u2014 EU and national (including in EU countries) \u2014 is specified in the definitions of money laundering, corruption and misappropriation.<\/p>\n<p>The criminal offences as defined in the directive fall within the material competence of the newly established European Public Prosecutor\u2019s Office, an independent EU body empowered to investigate and prosecute these crimes and bring them to judgment before competent national courts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Common_approach\"><\/span>Common approach<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In all EU countries (except Denmark and the United Kingdom (1)):<\/p>\n<p>these offences are all to be punished as criminal offences, as are their attempt as well as their incitement, aiding and abetting;<br \/>\nlegal persons* should be held liable for any of the criminal offences committed for their benefit \u2014 not excluding the possibility of criminal proceedings against natural persons who are the perpetrators or who are solely responsible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sanctions\"><\/span>Sanctions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The directive provides for minimum \u2018effective, proportionate and dissuasive\u2019 criminal sanctions.<\/p>\n<p>These include a maximum penalty of at least 4 years of imprisonment:<\/p>\n<p>where the financial damage to the EU budget is above the threshold of \u20ac100.000;<br \/>\nin any case of serious offences against the common VAT system;<br \/>\nother serious circumstances defined under national law.<\/p>\n<p>Where a criminal offence involves damages of below \u20ac10.000, EU countries may introduce sanctions that are not criminal.<\/p>\n<p>Regarding legal persons, the directive envisages various other types of sanctions in addition to fines (criminal and non-criminal).<\/p>\n<p>Offences committed within a criminal organisation within the meaning of Framework Decision 2008\/841\/JHA constitute an aggravating circumstance.<\/p>\n<p>These sanctions do not exclude:<\/p>\n<p>the possibility of more severe sanctions in national legislation;<br \/>\nthe exercise of disciplinary powers by the competent authorities against public officials.<br \/>\nThe directive also deals with the following:<\/p>\n<p>the freezing and confiscation of means and proceeds from the criminal offences that affect the EU budget;<br \/>\nestablishing jurisdiction for such offences;<br \/>\nminimum limitation periods enabling investigations and prosecutions as well as allowing the enforcement of the penalties imposed following a conviction for a commission of these offences.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cooperation\"><\/span>Cooperation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>between EU countries and EU institutions, bodies, offices and agencies<\/p>\n<p>The EU countries, Eurojust, the European Public Prosecutor\u2019s Office and the Commission\u2019s European Anti-Fraud Office (OLAF) must cooperate against the criminal offences covered by this directive. OLAF and, where appropriate, Eurojust provide technical and operational assistance to facilitate the coordination of the EU countries\u2019 investigations.<br \/>\nIf the Court of Auditors and auditors responsible for auditing the budgets of the EU institutions, bodies, offices and agencies or other budgets managed and audited by the institutions, find anything that could qualify as a criminal offence under this directive, they must inform the European Public Prosecutor\u2019s Office, OLAF and the other competent authorities. EU countries must ensure that national audit bodies do the same.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application\"><\/span>Application<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>EU countries have to incorporate it into national law by 6 July 2019.<\/p>\n<p>BACKGROUND<\/p>\n<p>Article 325 of the Treaty on the Functioning of the European Union obliges the EU and EU countries to counter fraud and any other illegal activities affecting the EU\u2019s financial interests with measures that act as a deterrent.<\/p>\n<p>More than 90% of the EU budget is managed nationally. Damage to the EU budget resulting from crime and other illegal activities amounts to hundreds of millions of euros each year and is of serious concern. In 2011, the Commission adopted a communication which contained proposals to improve the protection of EU financial interests (see IP\/11\/644).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Documents\"><\/span>Documents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>MAIN DOCUMENT<\/p>\n<p>Directive (EU) 2017\/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union\u2019s financial interests by means of criminal law (OJ L 198, 28.7.2017, pp. 29-41)<\/p>\n<p>RELATED DOCUMENTS<\/p>\n<p>Consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union (OJ C 202, 7.6.2016, pp. 1-388)<\/p>\n<p>Council Regulation (EU) 2017\/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor\u2019s Office (\u2018the EPPO\u2019) (OJ L 283, 31.10.2017, pp. 1-71)<\/p>\n<p>Directive (EU) 2015\/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648\/2012 of the European Parliament and of the Council, and repealing Directive 2005\/60\/EC of the European Parliament and of the Council and Commission Directive 2006\/70\/EC (OJ L 141, 5.6.2015, pp. 73-117)<\/p>\n<p>Directive 2014\/42\/EU of the European Parliament and of the Council of 3 April 2014 on the freezing and confiscation of instrumentalities and proceeds of crime in the European Union (OJ L 127, 29.4.2014, pp. 39-50)<\/p>\n<p>Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the protection of the financial interests of the European Union by criminal law and by administrative investigations \u2014 An integrated policy to safeguard taxpayers&#8217; money (COM(2011) 293 final, 26.5.2011)<\/p>\n<p>Council Framework Decision 2008\/841\/JHA of 24 October 2008 on the fight against organised crime (OJ L 300, 11.11.2008, pp. 42-45)<\/p>\n<p>Council Directive 2006\/112\/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, pp. 1-118)<\/p>\n<p>See consolidated version.<\/p>\n<p>Council Regulation (EC, Euratom) No 2988\/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, pp. 1-4)<\/p>\n<p>Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities\u2019 financial interests (OJ C 316, 27.11.1995, pp. 49-57)<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-12525\" data-postid=\"12525\" class=\"themify_builder_content themify_builder_content-12525 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Fight against fraud to the EU\u2019s financial interests by means of criminal law Directive (EU) 2017\/1371 \u2014 using criminal law to protect the EU\u2019s financial interests To create a stronger and more harmonised system, with minimum common rules, to fight crime affecting the EU budget. To better protect the EU\u2019s financial interests and taxpayers\u2019 money [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[151],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12525"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=12525"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12525\/revisions"}],"predecessor-version":[{"id":18637,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12525\/revisions\/18637"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=12525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=12525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=12525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}