AWF MTIC Auditors VAT hearing of the European

AWF MTIC • • • Auditors VAT hearing of the European Court of Committee on Budgetary Control Brussels, 14 July 2008 Carlo van Heuckelom Ho. U Property and financial crime unit – SC 4 DMS # 326522

Europol • Mission − European Union’s law enforcement organisation that processes criminal intelligence − To support the law enforcement agencies in the EU member states in their fight against serious forms of organised crime • Objectives − Facilitating information exchange − Providing Operational Analysis − Providing expertise and technical support • Legal Framework - Article 2 Europol Convention − Activity involves 2 or more MS − Indication of organised crime − Activity is part of Europol’s mandated crime area

Europol’s Fraud Mandate • Legal Framework − Art 29 and art 30 of the European Union Treaty − Art 280 of the European Community Treaty • Declaration to the Council Decision (OJ C 362/2 of 18/12/2001) − Re tax 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 • Extension of Europol mandate − 1 January 2002 – mandate extended to deal with fraud

AWF MTIC (open since 2 April 2008) • Purpose of the file −Missing trader intra-community fraud −Related offences • AWF members −Belgium, Czech Republic, Denmark, France, Hungary, Greece, Ireland, Italy, the Netherlands, Romania, Spain, UK, Eurojust and Norway • Groups of persons on whom data are stored −Criminals, Suspects, Witnesses, Contacts and Associates, Victims, Informants • Additional information stored −Details on Companies, Means of Transport, Means of Communication, Financial Information, Means of Identification

Analytical Work File (AWF) a platform for Pan European integrated crime analysis Storage of Nominative data Dynamic process to link objects, entities and documents • To identify links between national inquiries • To enable the production of strategic and operational reports • To support investigations • Detection of recurrent patterns • OC groups identification DOCUMENTS

INDEX

Data protection

Project Plan • Aim of the AWF is: −To contribute in the identification of the organisers and dismantling of their criminal networks/groups in committing MTIC fraud and related criminal activities −To prioritise the scope of the AWF in targeting the most prevalent modus operandi of MTIC fraud • 2008 main objectives: −Support and co-ordinate at least 2 criminal investigations −Support the tracing of proceeds from MTIC fraud to the total of at least 5 million € (or equivalence) • Constraints: −Data quantity and quality

Data Collection Plan • Contributions: − Category • operational facts and intelligence (hard/soft data) generated by controls and/or investigations − Context: • Every contribution should provide sufficient contextual information such that the relevance of the facts submitted is clear – especially for new cases) − Raw Materials: • AWF MTIC wants to receive working documents created during the course of investigations/controls − Evaluation: • Use of handling/evaluation codes − Transmission • Info-Ex via Liaison Bureaux

Analysis Group Structure/Role • Europol AWF Project Team −Experts, analysts, seconded officers • The Member States −National Contact Points −ENU −ELO’s • Associated Members −Eurojust/Norway • Terms and acronyms −Target Groups −Typologies*: • Missing Trader, Buffer Trader, Broker, Conduit Trader, Defaulting Trader, Crossed Invoicer, Third Party Payments (*FATF – report ‘laundering the proceeds of VAT carousel fraud’ – Feb 2007)

Practical Benefits • • Clear strategy Better Intelligence Real Time support (Mobile office solution) Greater understanding Partnership working Co-ordinated action against the OCGs Complementary action to 1 st Pillar dispositions

Complementarity of AWF MTIC Administrative Investigation Criminal Investigation • EU regulation 1798/2003 (multi lateral controls), Naples II convention • Criminal laws, bi- or multilateral agreements for mutual legal assistance, Europol convention, Eurojust, Naples II convention • Focus on detection of fraud • Focus on repression of fraud − Identification of companies − deregistration of VAT numbers − little or no focus on the identification and arrest of the masterminds − restricted coercive powers − Full range of coercive powers − Identification of the individuals orchestrating the fraud − Analysis of the modus operandi applied − Priority is the dismantling of organised crime groups − Tracing and recovery of the proceeds from MTIC crime

• • Questions - Comments