1. SC4 – Financial Crimes Unit
COCOBU Public Hearing on MTIC Fraud
Brussels, 5 May 2008

2. Europol’s Fraud Mandate
Legal Framework
Art 29 and 30 of EU Treaty
Art 280 of the EC Treaty
Declaration to Council Decision (OJ C362/2 18 December 2001)
- re tax fraud and customs fraud, Europol competency to improve the effectiveness and cooperation of MS competent authorities for the functioning of the criminal law enforcement system
- must take account of OLAF’s competency for fraud
1 January 2002
- formal extension of Europol mandate to deal with fraud
The Europol’s Fraud Mandate
Art 29 and 30 of EU Treaty: closer co-operation between police forces, customs authorities and other competent authorities in the MS, both directly and through Europol
Art 280 of the EC Treaty: obligation to the Community and the MS to counter fraud and any other legal activity affecting the financial interests of the Community
First point – Europol assigned competency is not for the MS authority responsible for the levying of taxes and customs duties. Europol AWF focus is on Crimes, not on Tax.
Second point OLAF – Led to an Administrative Agreement with Europol, 8 April 2004
(Areas of common interest fraud, corruption and money laundering in OC framework affecting financial interests of EU; exchange strategic and technical info; co-operate in Intel and tech support fields; common reports and mutual consultation; participation in JITS; co-operate in training and working groups; SC4 contact point).
No personal data can be exchanged between the two (unlike Operational agreements) which means that OLAF cannot extract data from AWF. OLAF may, however, contribute strategic contributions to the AWF should they wish.

3. The Road to AWF MTIC 31 May 2006 – EU Commission (COM(2006) 254)
25/26 October 2006 – G6 Summit, UK
11 December 2006 – Europol MTIC Conference
Feasibility studies supported by MS and partners
OCTA 2007
12/13 June th JHA Council OCTA conclusions
12 September 2007 – Europol OSG agree to initiate AWF
16 November Europol MTIC meeting to draft opening order and collection plan
31/5/06 – to launch a debate with all parties concerned re European strategy to combat tax fraud. This communication covered both direct and indirect taxes, but the fight against MTIC fraud (inc Carousel/Acquisition frauds) is clearly the major issue
25/6 Oct 06 –Stratford-Upon-Avon, meeting of Interior Ministers of UK, France, Germany, Italy, Poland and Spain – topics migration, terrorism and organised crime; MTIC fraud discussed, millions lost may be used to facilitate other forms of OC and terrorism; little of the losses are actually recovered; need to improve co-operation, set up European platform to enhance the fight against MTIC fraud and to improve recovery of proceeds of crime; Europol and Eurojust identified as having a key role. …….. follow up con. London 21/2/07
11/12/06 – MS experts plus Commission rep from OLAF; UK led proposals for the creation of AWF
Feasibility studies –Participation indicated by France, Belgium, Spain, Italy, UK, Ireland, Hungary, Belgium, Latvia, Estonia, Norway, Netherlands (and Germany?)
12/13 June – In Luxembourg, setting EU Priorities for the fight against organised crime based on the 2007 OCTA. Fraud, especially in the area of highly taxed goods and VAT Carousels, 3rd ranked priority, after drug trafficking and that in human beings
12/9/07 – after UK proposal on 31/8 to organise an Operational Steering Group assessment of the feasibility study, green light given for SC4 to open AWF. HENUs (Heads of Europol National Units) agreed to this at their meeting 17/18 September 2007

4. AWF MTIC Aims Opening AWF Opened on 2nd of April 2008 Aim
..the identification of MTIC fraud organisers and dismantling of their criminal networks..
..targeting the most prevalent modus operandi of MTIC fraud..
Explicit objectives for 2008
..support/coordinate at least 2 criminal investigations
..support the tracing of at least 5 million € proceeds from MTIC fraud
At final point -The single most effective way of disrupting crime is the confiscation of the proceeds derived from criminal activity….. The conviction of perpetrators is no longer enough. In the minds of our police and customs officers, Asset confiscation MUST be given equal priority in the whole judicial process, right from the beginning of any investigation through to ultimate prosecution.
This message can never be over emphasised.

6. 18 AWF’s
INDEX
Analysts
This is a short overview of how the data can be viewn at Europol. The information is sent to Europol and will be part of a work file, which is inputted only by analysts at Europol. The data is now part of the Index System and can be consulted by the ELO’s and by analysts only.

7. Cross-matches

8. confidential investigation
Data protection
confidential investigation
Handling code H2

9. Feasibility study AWFMTIC
United Kingdom
France
Belgium
Italy
Spain
Latvia
Norway
Denmark
Ireland
Hungary
Estonia
Greece
Romania
The Netherlands
Portugal
Eurojust