Introducing the European Commission's Anti-Fraud Office, OLAF

Introducing the European Commission's ( aka the European Parliament) Anti-Fraud Office, OLAF - similar to SFO in the UK.

http://ec.europa.eu/anti_fraud/jpo/en.html

Although they focus on non-government fraud, and not government corruption, they are a useful organization to know about.

In May, 2007, they organized a fair that included many organizations that educated the public about stopping fraud. (from the SFO news releases).

"OLAF, in cooperation with its national partners (investigation services, police, legal and administrative authorities, etc), does its best to counter criminals and fraudisters who organise their illicit activities at an international level. "

Below is from their overview page:

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THE FIGHT AGAINST FRAUD

A PRIORITY OF THE COMMUNITY INSTITUTIONS

* 1. An independent European investigation service
* 2. Fight against fraud and cross-border crime
* 3. The independence of OLAF
* 4. Consultation and cooperation with Member States
* 5. Partnership with the national investigators
* 6. Internal investigations
* 7. Background on the OLAF investigators
* 8. OLAF and European Citizens

The Community budget is financed by taxpaying citizens' money. It is adopted, on a proposal from the Commission, by the budgetary authority (the European Parliament and the Council).

European policies, financed in this way, are intended for the realisation of projects of general interest. Evading the duties and levies which supply the Community budget, or using Community financing wrongfully, subsequently results in harm to the European taxpayer.

Therefore, The European Institutions have a duty to guarantee, with regard to the taxpayer, the best use of their money and in particular to fight as effectively as possible against fraud. For this reason, the protection of the financial interests of the Community has become one of the major priorities for the European Institutions. This covers activities concerning the detection and monitoring of fraud in the customs field, misappropriation of subsidies and tax evasion, insofar as the Community budget is affected by it, as well as the fight against corruption and any other illegal activity harmful to the financial interests of the Community.
In order to intensify this action, the Community Institutions established the European Anti-Fraud Office (known by its French acronym - OLAF) in 1999. They also provided for its investigative independence.

1. OLAF - AN INDEPENDENT INVESTIGATION SERVICE WITHIN THE EUROPEAN COMMISSION

The Community Institutions and Member States attach great importance to the protection of the financial and economic interests of the Community, as well as to the fight against transnational organised crime, fraud and other illegal activities prejudicial to the Community budget.

Attacks on the European policies, carried out by criminals and fraudsters, harm not only the budget of the Union, but also its credibility. The responsibility for the Commission in this respect is closely linked with its mission of implementing the budget ( Article 274 of the EC treaty). This was confirmed by Article 280 of the EC treaty.

In order to strengthen the means of fraud prevention, the Commission established within itself the European Anti-Fraud Office (OLAF) by EC, ECSC Decision 1999/352 of 28 April 1999. The Office was given responsibility for conducting administrative anti-fraud investigations and was granted special independent status.

The Office commenced its work on 1 June 1999, the day of entry into force of Regulation (EC) N° 1073/1999 of the European Parliament and of the Council, and Council Regulation (Euratom) N° 1074/1999, of 25 of May 1999, concerning the investigations carried out by OLAF. The Office succeeded the "Task Force for the Co-ordination of fraud prevention" (UCLAF) which was part of the Secretariat-General of the Commission, created in 1988.

While it has an individual independent status for the investigative function, OLAF is also part of the European Commission, under the responsibility of Siim KALLAS, Vice Président, in charge of Administrative Affairs, Audit and Anti-Fraud.

2. A EUROPEAN INSTRUMENT FOR THE FIGHT AGAINST CROSS BORDER CRIME AND FRAUD

OLAF carries out all the powers of investigation conferred on the Commission by Community legislation and the agreements in force with third countries, with a view of reinforcing the fight against fraud, corruption and any other illegal activity affecting the financial interests of the European Community.

Over and above the protection of financial interests, the responsibility of the Office concerns all the activities connected with safeguarding Community interests against irregular behaviour likely to lead to administrative or penal proceedings.

In order to coordinate the action of the Member States in their fight against fraud detrimental to the interests of the Community, OLAF provides them with the support of the Commission, aimed at organising close and regular cooperation between the competent national authorities.
Additionally, the Office, as a Commission service, contributes to the planning and the development of prevention and anti-fraud methods.

3. THE INDEPENDENCE OF OLAF AND ITS DIRECTOR-GENERAL GUARANTEED AND VERIFIED BY A SUPERVISORY COMMITTEE AND A SPECIAL STATUS

The implementation of OLAF's investigative functions (internal and external investigations) is conducted by its Director-General. He is designated by the Commission for a five-year period (renewable once), following a favourable opinion from the supervisory committee and in co-operation with the European Parliament and the Council.

With the aim of guaranteeing the independence of OLAF in its investigative function, the legislator gave the obligation to the Director-General of the Office neither to seek nor take instructions from any government or any institution (including the Commission). If the Director-General of OLAF ascertains that the Commission has taken a measure that challenges his independence, he has the possibility of bringing a case against the Commission before the Court of Justice.

To consolidate this independence, the Office is subject to regular control of its investigative functions by a Supervisory Committee, made up of five outside persons independent of the Community Institutions, who are highly qualified in the areas of competence of the Office. At the request of the Director-General or by its own initiative, the Supervisory Committee will deliver opinions to the Director-General concerning the activities of the Office, without, however, interfering with the conduct of investigations in progress.

4. CONSULTATION AND COOPERATION WITHE THE MEMBERS STATES : the Advisory Committee for the Coordination of Fraud Prevention (COCOLAF)

The Advisory Committee for the Coordination of Fraud Prevention (CoCoLAF) is the forum for the exchange of information on general issues regarding the protection of the Communities’ financial interests between the Commission and its main partners for the protection of financial interests. Debate and reflection on the Member States’ needs and OLAF’s particular added value are furthered in specific working groups.

In close cooperation with the Commission and the Member States, the Committee also issues guidelines for national authorities and reference documents on fraud and other irregularities. CoCoLAF is also in charge of furthering the close cooperation between the Member States and the Commission (OLAF), provided for in Article 280 of the EC Treaty.

CoCoLAF provides a forum in which the Commission can consult the Member States on the content of the annual report on the protection of the Communities’ financial interests and the fight against fraud, produced in cooperation with the Member States. The report gives an overview of Community and national action and initiatives, including case reporting and trends in fraud and other irregularities throughout the EU, conducted in the course of the year.

5. PARTNERSHIP WITH THE NATIONAL INVESTIGATORS AGAINST THE INTERNATIONAL NATURE OF THE CRIME : THE ADDED VALUE OF OLAF IN THE CONDUCT OF EXTERNAL INVESTIGATIONS

OLAF, in cooperation with its national partners (investigation services, police, legal and administrative authorities, etc), does its best to counter criminals and fraudisters who organise their illicit activities at an international level. OLAF is to some extent the engine of the "Europe of legality" against the "international nature of criminality" harmful to Community interests.

Working to strengthen the fight against fraud, OLAF carries out the external investigative responsibility conferred on it by the regulation providing for "on the spot" checks and inspections carried out in the Member States for the protection of the financial interests of the European Communities against frauds and other irregularities (Regulation N° 2185/96). If cooperation agreements exist, OLAF can also use this authority in third countries.

Within the framework of its investigative function, the Office also carries out checks and inspections provided for inthe regulation for the protection of the financial interests of the European Communities (Regulation N° 2988/95) and in any other sectoral regulation.

In practice, fraud and other irregularities are almost always detected in close cooperation between with the relevant national investigation services. It should not be forgotten that the principal obligation in this area falls to the Member States; they collect their own traditional resources (i.e. the budget revenues of the EU) on behalf of the Community and manage almost 80% of the expenditure of the Community budget.

In sectors where particularly lucrative sources of illicit profit exist, task-groups specialising in specific products such as cigarettes, alcohol or olive oil, have shown that close cooperation between the Member States and effective coordination at Community level can be extremely useful in uncovering large scale smuggling and fraud. The same is true with regard to the efforts made at the Community and national levels to introduce preventive measures in these fields.

6. INTERNAL INVESTIGATIONS: A GUARANTEE OF THE SMOOTH OPERATION OF THE EUROPEAN INSTITUTIONS

Experience shows that no country or institution in the world is safe from cases of corruption or breaches of their responsibilities by their officials. Despite the total honesty and loyalty of the great majority of its officials, the European Commission wanted to be equipped with an investigation instrument in order to fight and protect itself.

To this end, OLAF can carry out administrative investigations inside the institutions (see EC Decisions 1999/394 and 1999/396) and the bodies and organs of the Community, in the event of fraud harmful to the budget of the EU. It is also responsible for detecting serious facts, linked with the performance of professional activities.

These investigations are carried out in compliance with the rules of the treaties (in particular the protocol on privileges and immunities) and with the staff regulations of officials of the European Communities. Additionally, they are carried out in full compliance with human rights, fundamental freedoms and the rules of confidentiality and data protection.

Insofar as legal provisions are respected, the Office has a whole series of powers (examples: access to information and the buildings of the Community Institutions, with the possibility to check accounts and to obtain extracts of any document).

In addition, the Office can request, from any person concerned, information that it judges useful for its investigations. In accordance with the arrangements laid down in Regulation N° 2185/96, it can carry out on the spot controls of the economic operators concerned, in order to have access to information concerning possible irregularities held by these operators.

7. THE INVESTIGATORS OF OLAF: A MULTI-DISCIPLINARY TEAM OF SPECIALISTS IN THE FIELD OF THE FIGHT AGAINST FRAUD

Currently, OLAF is comprised of about 400 personnel. The investigators of OLAF, like all the other officials and Community employees, work in the exclusive interest of the Communities. They have to discharge their functions and do their work while keeping in mind the interests of the Communities, without taking instructions from any government, authority, organisation or person independent of the institution.

To achieve these specific tasks, the majority of the personnel of OLAF have a solid professional experience gained in the areas of national investigations, police and judicial services, investigations concerning complex fraud cases, analysis and evaluation of information, or in support or development of policies in the area of the fight against fraud.

The OLAF team of investigators is multidisciplinary nature, which makes it possible to have an comprehensive and inter-sectoral approach (in the police, judicial, financial, customs, agricultural fields, etc). The fact that the majority of the investigators come from national investigation services is valuable in more than one way-at the level of expertiseand in maintaining close relations with the national investigators. This partnership is essential in the fight against fraudsters and criminals who harm Community interests.

8. OLAF AND THE EUROPEAN CITIZENS

OLAF is therefore neither a "secret service", nor a police force. It is rather the legal instrument for administrative investigation with which the European Union has been equipped by the Commission, to guarantee better protection of Community interests and compliance with the law against attacks from organised crime and fraudsters.

In the spirit of service to defend exclusively the interests of the European citizens and the supremacy of law, OLAF follows a policy of close cooperation with all the competent authorities and EU citizens.
The only limits to its policy of absolute transparency are established by the regulations in force, the laws on judicial secrecy, and the respect of individual rights.

Within this framework, OLAF also seeks the cooperation of the Institutions and all European officials, who have the obligation to transmit to the Office any information concerning possible cases of fraud or corruption or any other illegal activity of which they are aware. The Office appeals to any person with information on cases of fraud harmful to the Community budget to report this to OLAF.

To this end, a free phone provides the opportunity for contacting OLAF free of charge from all Member States, in order to give information of interest to the Office.

Postal address of OLAF:
The European Commission - European Anti-Fraud Office (OLAF)
Rue de la Loi, 200
B-1049 Brussels

Offices:
Rue Joseph II, 30
1000 Brussels

For any additional information, contact:
Mr. Alessandro Butticé
Tel.: + 32 2 296 54 25