M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 32 – Financial control Bilateral screening: Chapter 32 PRESENTATION OF MONTENEGRO Brussels, 19 June 2013

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control Anti-fraud Coordination Service (AFCOS) Milica Popović Adviser Ministry of Finance

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control Content: 1.Establishing AFCOS system in Montenegro 2. Institutional framework 2.1 Irregularity reporting system 2.1 Irregularity reporting system 2.2 AFCOS network 2.2 AFCOS network 2.3 AFCOS office 2.3 AFCOS office 3.Related legislation 4. Cooperation with OLAF 5. Future plans and activities

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 1. ESTABLISHING AFCOS SYSTEM IN MONTENGRO 1. ESTABLISHING AFCOS SYSTEM IN MONTENGRO In October 2009 Government adopted Information on establishment of AFCOS system in Montenegro Identification of possible irregularities in the national system in relation to the management of the EU funds, including pre-accession funds; Definition, coordination and implementation of a comprehensive anti-fraud strategy at the national level; Definition, coordination and implementation of a comprehensive anti-fraud strategy at the national level; Initiative for the legislative amendments and administrative framework in order to enable the effective protection of the EU financial interests, implying the establishment of joint coordination structures and mechanisms of other institutions involved in the protection of the EU financial interests; Initiative for the legislative amendments and administrative framework in order to enable the effective protection of the EU financial interests, implying the establishment of joint coordination structures and mechanisms of other institutions involved in the protection of the EU financial interests; Cooperation between national institutions (administrative, judicial bodies, investigation bodies) as well as cooperation and exchange of information between these authorities and OLAF, in cases of suspected fraud or irregularity directed to the EU funds. Cooperation between national institutions (administrative, judicial bodies, investigation bodies) as well as cooperation and exchange of information between these authorities and OLAF, in cases of suspected fraud or irregularity directed to the EU funds.

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 2. INSTITUTIONAL FRAMEWORK 2.1 Irregularity reporting system Authorities and institutions that manage and use the EU pre-accession assistance funds, and represent a system of reporting on irregularities Framework Agreement between the Government of Montenegro and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to Montenegro in the framework of the implementation of the assistance under the Instrument for Pre-Accession Assistance (IPA) (OG MNE, International Agreements, no 01/08 from 10 th January 2008) Framework Agreement between the Government of Montenegro and the Commission of the European Communities on the rules for co-operation concerning EC financial assistance to Montenegro in the framework of the implementation of the assistance under the Instrument for Pre-Accession Assistance (IPA) (OG MNE, International Agreements, no 01/08 from 10 th January 2008) Decree on organisation of the decentralised management of Instrument for pre-accession EU assistance (OG MNE, No. 33/11 from 8 th July 2011) Decree on organisation of the decentralised management of Instrument for pre-accession EU assistance (OG MNE, No. 33/11 from 8 th July 2011) Manuel of procedures Manuel of procedures

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 2. INSTITUTIONAL FRAMEWORK 2.2 AFCOS network 2.2 AFCOS network AFCOS OFFICE Police admin. Public procurement admin. Admin. for anti-corruption initiative Supreme State prosecutor Custum admin. Ministry of Interior State audit institut. AFCOAFCOS AFmreža Tax admin. NAO Project Implementation Units in line ministries involved in teh IPA programme CFCU NF MFAEI AFCOS NETWORK IRREGULARITIES REPORTING SYSTEM

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 2. INSTITUTIONAL FRAMEWORK 2. INSTITUTIONAL FRAMEWORK 2.3 AFCOS office Independent office within the Ministry of Finance under the direct authority of the Independent office within the Ministry of Finance under the direct authority of the Minister Minister Job description given in Systematization Act of Minsitry of Finance Job description given in Systematization Act of Minsitry of Finance Coordinate the work of institutions in the AFCOS system performing legislative, administrative and operational activities in order to protect financial interests of the EU Coordinate the work of institutions in the AFCOS system performing legislative, administrative and operational activities in order to protect financial interests of the EU Cooperation with OLAF Cooperation with OLAF

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 3. RELATED LEGISLATION 3. RELATED LEGISLATION Law on state employees and civil servants (OG MNE No 39/11, 50/11 and 66/12) Law on state employees and civil servants (OG MNE No 39/11, 50/11 and 66/12) Law on preventing conflict of interests in exercising public functions (OG MNE No 01/09, 41/11 and 47/11) Law on preventing conflict of interests in exercising public functions (OG MNE No 01/09, 41/11 and 47/11) Ethical codex for state employees and civil servants (OG MNE No 20/12) Ethical codex for state employees and civil servants (OG MNE No 20/12) Labour Law (OG MNE No 49/08, 26/09, 88/09, 26/10, 59/11 and 66/12) Labour Law (OG MNE No 49/08, 26/09, 88/09, 26/10, 59/11 and 66/12) Law on PIFC (OG MNE No 73/08, 20/11 and 30/12) Law on PIFC (OG MNE No 73/08, 20/11 and 30/12)

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 32: Financial control Chapter 32: Financial control 4. COOPERATION WITH OLAF 4. COOPERATION WITH OLAF January Workshop on irregularities in implementation of EU funds in Podgorica Podgorica April URT/IMS training in Brussels April URT/IMS training in Brussels June AFCOS conference in Ankara June AFCOS conference in Ankara

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Update Information on establishment of AFCOS system in Montenegro - August 2013 Update Information on establishment of AFCOS system in Montenegro - August 2013 Government decision -appointment of representatives of the institutions involved in Government decision -appointment of representatives of the institutions involved in AFCOS network – end of the 2013 AFCOS network – end of the 2013 Application for Study visit (TAIEX) to the Croatia (AFCOS office) –July 2013 Application for Study visit (TAIEX) to the Croatia (AFCOS office) –July 2013 Workshop in Podgorica within the Agreement on Cooperation between Ministry of Finance of Montenegro and Ministry of Finance of Croatia- second half of 2013 Workshop in Podgorica within the Agreement on Cooperation between Ministry of Finance of Montenegro and Ministry of Finance of Croatia- second half of 2013 Strategy -protection of financial interests of EU in 2014 Strategy -protection of financial interests of EU in 2014 Chapter 32: Financial control Chapter 32: Financial control 5. FUTURE PLANS AND ACTIVITIES

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