Lecture reader for the series of lectures Part III

1. The Constitutionalisation and Evolution of Penal Law and Control Policy in the European Integration Lecture reader for the series of lectures Part III Protection of the Financial Interests of the European Union and the European Anti-Fraud Office OLAF by Counsellor, docent, Dr Tuomas Pöysti Counsellor, docent, Dr Tuomas Pöysti

2. Protection of the financial interests of the European Union: main legal instruments • Convention and additional protocols on the protection of the financial interests (PIF Convention) • Council Regulation 2988/95 on the protection of the financial interests • Council Regulation 2185/96 on the on-the-spot inspections • European Parliament and Council Regulation No 1073/99 on the OLAF investigations and Council Regulation 1074/99 concerning Euratom • Financial Regulation of the EC 1602/2002 Counsellor, docent, Dr Tuomas Pöysti

3. The PIF Convention: main contents • Community fraud definition • Penalties • Criminal Liability of the directors of moral persons • Jurisdictional issues • Extradiction and prosecution • Co-operation • Non bis in idem • Role of the Court of Justice Counsellor, docent, Dr Tuomas Pöysti

4. PIF Regulation 2988/95 • Horisontal framework regulation concerning protection of the financial interests. Application however requires references in the sectoral rules. • More doctrinal influence • Definition of fraud in the administrative law • Introduction of administrative checks and penalties • Time limits for penalties • Principles concerning administrative penalties • Relations of administrative sanctions and proceedings to penalties and procedures under penal law • Administrative checks Counsellor, docent, Dr Tuomas Pöysti

5. Regulation 2185/96 on the Commission on-the-spot checks and inspections • Horisontal rules concerning Commission’s powers of inspection and on-the-spot checks • Commission may carry out on-the-spot checks: • in the case of cross-border cases of irregularities • if the efficiency and equivalent level of protection in the Community requires Commission inspections (principle of assimilation) • at the request of the Commission • Requirement of the co-ordination of inspections • Principle of close co-operation with the Member States • Duty of co-operation on the side of economic operatiors subject to controls • Application of national procedure in the inspection • Admissibility of Commission inspection reports in national proceedings Counsellor, docent, Dr Tuomas Pöysti

6. European Anti-Fraud Office OLAF • Established in the context of the resignation of Jacques Santer Commission in 1999 • Santer Commission proposed the establishement of an independent Community agency to strengthen the investigation which were performed by Commission’s Anti-Fraud unit UCLAF • Council wanted the new service to be closer to the Commission and on the same time, guarantee functional independence of the new service • OLAF has a multiple mandade. It performs • internal anti-fraud and irregularities investigations in the all Community institutions and bodies • external anti-fraud investigations on the economic operators who are subject to the Commission investigative powers • OLAF provides the Community platform of service to the Member States in the fight against fraud, notably training and strategic intelligence and analyses • OLAF is a Commission service participating in the evaluation and policy-making /drafting of legislation Counsellor, docent, Dr Tuomas Pöysti

7. OLAF investigations regulation 1073/99 • Interesting Community law instrument contributing to the general principles concerning procedures under administrative penal law • Transfer of the case to the judicial authorities of the Member State if falls under penal law; co-operation with judicial authorities • Confidentiality • Proportionality, proportionality requires also sufficient rapidity in the investigations • Position of the parties in the investigations • Problematic areas: supervision of the OLAF activities, guaranteeing the fundamental rights and freedoms in the investigations and co-operation with the Member States judicial authorities Counsellor, docent, Dr Tuomas Pöysti