Europol: Focal Point MTIC Carlo van Heuckelom HoU O23 Economic Crimes Europol Unclassified - Basic Protection Level Europol Public Information

Europol HQ, The Hague LB Network: 140 ELOs 37 Countries 70 Agencies LB Network: 145 ELOs 38 Countries 71 Agencies Analysts, Specialists and Liaison Officers

Europol’s Functions The EU’s law enforcement agency collating, analysing and disseminating criminal intelligence Facilitate the exchange of information between Member States Provide operational analysis in support of Member State operations Provide expertise and technical support for investigations Serious Organised Crime which affects 2 or more MSs

International Law Enforcement Cooperation 28 Member States LBs 10 Third Party LBs 13 Operational Agreements 20 Strategic Agreements Police Customs Gendarmerie Financial Police Tax and Revenue Border Guard Coast Guard Immigration Security Services

5 Key capabilities – Our people Top specialists in combating serious crime and terrorism Every major EU national law enforcement agency Centre of EU expertise Best +100 criminal analysts Unique concept of the Liaison Officers’ network  2 million EU law enforcement officers  30+ key third countries and organisations

Focal Points

7 Focal Point MTIC Opened April 2008 Objective: to collate, collect and analyse intelligence and information with the aim to identify organised criminals or networks active in MTIC fraud to support criminal investigations and prosecution in MTIC fraud area 7

8 Focal Point MTIC Membership 23 Member states: Austria, Belgium, Bulgaria, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Greece, Hungary, Italy, Ireland, Latvia, Lithuania, The Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Sweden, United Kingdom 3 Associates: Switzerland, Norway, EUROJUST

9 VAT FRAUD – The scale of the Problem €193 billion Source: European Commission Press Release, 19 September 2013 VAT Gap across 26 Member States 2011

VAT Gap 2011 – Let’s put it another way…… VAT accounts for 21% of total Governmental revenues Tax Gap equates to 1.5% MS GDP Tax Gap equates to 18% of theoretically expected total revenue Italy, France, Germany and UK contribute to over half the quantitative gap Romania, Greece, Lithuania and Latvia largest in terms of GDP ratio

…..or, put another way… EU Budget 2014 (Agreed November 2013) €135.5 billion

MISSING TRADER

Le TAMPON et le PROFITEUR

Cross invoicing

FICTICIOUS INTRACOMMUNITY DELIVERY

IN – OUTERS (CONDUITCOMPANIES)

Les FAUSSES FACTURES ou FACTURES DE COMPLAISANCE

FICTICIOUS EU EXPORT

LA FRAUDE A LA MARGE MARGIN FRAUD

SIENA Information Exchange Secure Information Exchange Network Application

Handling Codes

Intelligence Flows Operational team Europol National Unit MS Liaison Bureau Other Liaison Bureaux Europol Analysts

Seizure reports Surveillance logs Intercept transcripts Itemised phone billings Transcripts of witness interviews Transcripts of suspect interviews Forensic reports House (premises) search reports Stop & search records Suspects criminal antecedents Records of court proceeding etc Intelligence reports (including informants) Seized data (diaries, PDAs, SIMs, Communication devices, PC-drives) Means of transport and postal control records

Intelligence suggests that the bank accounts registered by company A, its subsidiaries and/or associated companies have been/are used for fraudulent transactions in carbon credits. The individuals P1 – P8 are part of a network of account holders probably used for fraudulent transactions. They have registered several personal accounts in different countries either in their own name or for their companies to facilitate fraudulent transactions in carbon credits.

FRANCE GERMANY ITALY

Operational Analysis -Crime Analysis -Crime Mapping -Event Charting -Flow Charting -Time and Sequence Charting -Link and Network Analysis -Money Transaction Analysis -Social Network Analysis -Communication Data Analysis -Pattern Tracing Etc.

Europol Information System AWFs Operational, on-site support

UFED (Universal Forensic Extraction Device) Complete extraction of mobile phone data SIM ID cloning via built in SIM reader Memory dump Hard case for portable transport Universal phone charger

33 FP MTIC –Priority areas VAT fraud on trade in emission allowances (“Carbon credits”) VAT fraud in gas, electricity and metals markets “Classical” carousel fraud Abuse of VAT relief schemes for Imports (CP4200, etc) “Margin” fraud on intra-community sales of new cars “Offshore” financial institutions (ABP’s Alternative Banking Platforms)

Multidisciplinary cooperation Law enforcement agencies (EUROPOL) Judicial authorities (EUROJUST) Tax administrations (EUROFISC) Legislation (Commission - QRM/Reverse Charge) Government bodies, e.g. National Registries, Regulators Private Sector bodies, e.g. Power exchanges (EUROPEX) Private sector traders, e.g. large energy trading companies, banks

EU Crime priorities European Multidisciplinary Platform Against Criminal Threats (EMPACT)

New Policy Cycle : 9 Priorities Counterfeit Goods MTIC & Excise fraud (2) Firearms Heroin & Cocaine Illegal Immigration Synthetic Drugs Trafficking in Human Beings Organised Property Crime Cybercrime (3 - Card Fraud, Child SE, Cyber)

The EU Policy Cycle Step 1: SOCTA Step 2: MASP Step 3: EMPACT OAPs Step 4: Review and assessment

The structure of an EMPACT Priority DRIVER Co-Driver EMPACT Support Manager EMPACT Support Unit TS MS EUMS Multidisciplinary Member State Leadership Member State Participants EUROPOL & EU Agencies Third States & INTERPOL

EMPACT Inside the Participating Member States National EMPACT Coordinator [NEC] Participant Priority B Participant Priority A Participant Priority D Participant Priority C National Police CustomsBorder Guard Regional Police National Prosecutors Tax PoliceRegulation Authorities Education Media Private Sector Government Agencies E U R O P O L NA T I O N A L U N I T

EU crime Priority MTIC fraud – who participates? Objective To disrupt the capacity of OCGs and specialists involved in Missing Trader Intra Community (MTIC) fraud Participants All Member States, except Croatia, Denmark, Luxembourg, Malta

MTIC Multi-Annual Strategic Plan To develop an EU communication strategy to promote awareness amongst all public and private stakeholders of the threat of MTIC fraud. Promote best practice in areas of prevention, detection, disruption, investigation and prosecution of MTIC fraud More intelligence sharing, operational and prosecutorial collaboration at EU Level Better understanding of the financing of MTIC fraud and money laundering mechanisms to assist prevention and disruption as well as recovery of proceeds of crime. Development of relationships with key partners in Third Countries which house or facilitate MTIC fraudsters

Thank you Carlo van Heuckelom HoU Economic Crimes Tel