The The SafeNetSafeNet Project: Project:

StrenghtenStrenghten Anti Anti FraudFraud EuropeanEuropean

NetworkNetwork

Padova, Italy 07-08-09 February 2017

This event is supported by the European Union Programme Hercule III (2014-2020).

This programme is implemented by the European Commission.

It was established to promote activities in the field of the protection of the financial interests of the European Union.

(for more information see http://ec.europa.eu/anti-fraud/policy/hercule_en)

ROUND TABLEROUND TABLE

Latest trends in fighting Latest trends in fighting

irregularities and frauds in irregularities and frauds in

Agriculture for an informed Risk Agriculture for an informed Risk

ManagementManagementAndrea Bordoni

Team Leader Analysis

For an Informed Fraud Risk Management

Padova, Italy 08 February 2017

That it reflects the author’s view and the European Commission is not responsible for the views displayed in the publications

and/or in conjunction with the activities for which the grant is used.

The information contained in this publication does not necessarily reflect the position or opinion of the European

Commission.

2

OV

ER

VIE

WO

VE

RV

IEW

Fraud Risk Management: a Fraud Risk Management: a

necessary exercise?necessary exercise?

• The European Anti-Fraud Office: investigative and policy

role

• Data, facts and trends

• The anti-fraud momentum

• Yesterday's findings

• 3 Key areas

3

The European AntiThe European Anti--fraud Office (OLAF)fraud Office (OLAF)1. MISSION

� Step up fight against fraud, corruption and other illegal activities

� Assistance to Member States

� Contribute to design and development of methods of preventing and

combating fraud, corruption and other illegal activities

� Promote and coordinate the sharing of operational experience and

operational practices

2. INVESTIGATIVE ROLE

� Administrative investigations

� Recommendations

� Monitoring

3. POLICY ROLE

� Promote lesiglative proposals

� Coordinating policy initiatives

� Analysis

4. COOPERATION WITH AND SUPPORT TO MEMBER STATES

� Committees

� Joint Customs Operations

� Hercule

� Participation to events

� Working groups and dissemination of documents

INT

RO

DU

CT

ION

INT

RO

DU

CT

ION

4

Results of OLAF's investigationsResults of OLAF's investigationsO

LAF

'S R

ES

ULT

SO

LAF

'S R

ES

ULT

S

5

Results of policy initiatives by OLAFResults of policy initiatives by OLAF

• Commission Anti-Fraud Strategy

• Anti-fraud provisions 2014-2020

• National Anti-Fraud Strategies

The Anti-Fraud Cycle

OLA

F'S

RE

SU

LTS

OLA

F'S

RE

SU

LTS

6

Main policy highlights 2011Main policy highlights 2011--20162016

7

The EagleThe Eagle--Eye View (1)Eye View (1)

8

The EagleThe Eagle--Eye View (2)Eye View (2)M

S R

ES

ULT

SM

S R

ES

ULT

S

9

The EagleThe Eagle--Eye View (3)Eye View (3)

EAGF EAFRD

10

The EagleThe Eagle--Eye View (4)Eye View (4)

11

2010 2011 2012 2013 2014 2015

1

2

3

% of CAP budget

4

5

� CAP budget all� RD/PA investments

Ø 0,12 %

Ø > 4 %

(Suspected) Fraud

Financial impact

68 million €

Direct payments: 0,09 %Rural Development: 0,21 %

The EagleThe Eagle--Eye View (5)Eye View (5)

12

How much fraud affects Agricultural How much fraud affects Agricultural

Funds?Funds?

13

Fighting fraudFighting fraud

What does it really mean?What does it really mean?

• Fraud is difficult to:– detect: it is about deception

– deal with: Paying agencies role and competences are not designed expressly to attack it

– follow-up: the competence for that lies elsewhere, but not all its repercussions

– communicate about: information about fraud detections is usually misused K

EY

CO

NC

EP

TS

KE

Y C

ON

CE

PT

S

14

Control systems performance vs fraudControl systems performance vs fraud

Corruption / conflict of interest

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AVEPA survey: key findingsAVEPA survey: key findings

• 40% believes that corruption in the management of AGRI funds is widespread

• 45% believes that it has increased• 65% perceives that it comes more

from the citizens• 95% perceives that the interest for

anti-fraud and anti-corruption has increased over the last three years

YE

ST

ER

DA

Y'S

FIN

DIN

GS

YE

ST

ER

DA

Y'S

FIN

DIN

GS

16

Common groundsCommon grounds

• Generalised used of red flags

• Increased creative use of tools• Widespread use of IT tools

• Understanding of the need to structure cooperation with law enforcement

• Training and feedback

• Increased understanding of the need of cross-border cooperation

YE

ST

ER

DA

Y'S

FIN

DIN

GS

YE

ST

ER

DA

Y'S

FIN

DIN

GS

17

"Conflicting" models"Conflicting" models

• Prevention vs repression

• Centralised vs decentralised

• Small vs big

YE

ST

ER

DA

Y'S

FIN

DIN

GS

YE

ST

ER

DA

Y'S

FIN

DIN

GS

18

WHAT CAN WE DO WITH THE WHAT CAN WE DO WITH THE

EXISTING STRUCTURES?EXISTING STRUCTURES?

We have defined the momentum, identified the common grounds and some of the outstanding issues.

19

Creating a networkCreating a network

• AFCOS structure: centralised vs network

• Role of AFCOS• Stronger or weaker?

• Whether your structure is centralised or decentralised, you need a network

AF

NE

TW

OR

KA

F N

ET

WO

RK

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Transnational cooperationTransnational cooperation

• 2016 project run by Italian AFCOS (Hercule co-financed)

• Creating a European network to facilitate the acquisition of information for fraud prevention

• The more decentralised is the structure, the more decentralised could be also the international cooperation

AF

NE

TW

OR

KA

F N

ET

WO

RK

21

FIGHTING CORRUPTION AND FRAUD IN THE UE FIGHTING CORRUPTION AND FRAUD IN THE UE

WHAT WE CAN DO: STRATEGYWHAT WE CAN DO: STRATEGY

ANTI-FRAUD MEASURES TO BE EMBEDDED IN A NATIONAL

ANTI-FRAUD STRATEGY

�Building of mutual trust and cooperation among the

several layers

• administrative • Law enforcement• Judicial authorities• National and European

�Definition of roles

�Identification of needs, objectives and actions to achieve

them

�Facilitate transferring of knowledge and dissemination of

best practices

�Virtuous circle

AF

NE

TW

OR

K

AF

NE

TW

OR

K ––

NA

TIO

NA

L S

TR

AT

EG

YN

AT

ION

AL

ST

RA

TE

GY

22

The AF cycleThe AF cycleA

F N

ET

WO

RK

A

F N

ET

WO

RK

––N

AT

ION

AL

ST

RA

TE

GY

NA

TIO

NA

L S

TR

AT

EG

Y

23

Tools put at disposal by OLAFTools put at disposal by OLAF

• Financing: HERCULE• IT tools: AFIS-IMS

– Interface to national systems– AFIS mail: protected mailing system for

exchanging relevant information

– IMS analysis tool

• Resources: handbooks and guidelines

AF

TO

OLS

AF

TO

OLS

24

AntiAnti--Fraud measures communicationFraud measures communication

Media and stakeholders interpret our successes in the fight against fraud as failures

We need to develop a common narrative that shows to our stakeholders and to the public the achievements of our anti-fraud efforts

AF

CO

MM

UN

ICA

TIO

NA

F C

OM

MU

NIC

AT

ION

25

Key messagesKey messages

• There is a favourable momentum for enhancing the fight against fraud: let's use it!

• Fraud is a horizontal issue: action cannot stop at detection and cooperation within and outside the organisation is pivotal

• Networking is fine, but it needs to be structured

• We need to communicate in a more consistent and appropriate manner

CO

NC

LUS

ION

SC

ON

CLU

SIO

NS

26

Key messagesKey messages

• We have now in place unprecedented tools, resources and awareness to fight fraud

• Detected fraud should increase…

CO

NC

LUS

ION

SC

ON

CLU

SIO

NS

27