In 2022 the European Anti-Fraud Office (OLAF), protected 600 million EurosEU taxpayers’ money, on the one hand recommending to the competent authorities the recovery of approximately 426 million euros and return to the EU budget from fraud and irregularities and on the other hand saving an additional 200 million euros.

Also, OLAF busted various smuggling, counterfeiting and customs fraud ringsoffered its assistance in enforcing EU trade defense measures and continued to develop policies to prevent and combat evolving forms of fraud.

As every year, OLAF also investigated cases in which there were suspicions of misconduct by staff and members of the EU institutions. In total, OLAF closed over 250 cases last year.

OLAF’s 2022 report published today provides insight into the most important trends and operations undertaken last year, from fighting counterfeiting and smuggling to protecting EU funds — including the Recovery and Resilience Mechanism — and fraud prevention mechanisms to protect EU financial assistance to Ukraine. For the first time, the exhibition is presented in an interactive virtual format.

OLAF Director General Ville Itälä underlined:

“The accumulated knowledgethe expertise and the activities of OLAF deliver tangible results that allow us to protect both the EU budget and its citizens.

Protecting the money EU taxpayers pay for infrastructure and digitalisation, the seizure of 531 million contraband cigarettesthe international crackdown on adulterated honey and the recovery of almost €3 billion in the EU budget from a customs fraud case are just a few examples of the scope and impact of OLAF’s action.

Prevention remains the most effective tool for dealing with fraud. OLAF strives to ensure that EU financial assistance and investments in Member States and third countries are spent as intended. We strongly believe that cooperation is key to the success of our operations, and for this reason in 2022 OLAF stepped up its cooperation with national authorities, international organizations and EU partners.

OLAF’s ability to coordinate multiple actors and provide an overall picture of the situation remains our unique and distinctive quality with great added value in the fight against fraud in the European Union and beyond.”

OLAF’s performance in investigating cases in 2022:

  • OLAF completed 256 investigations, issuing 275 recommendations to the competent National and Union Authorities.
  • OLAF recommended the recovery of EUR 426.8 million to the EU budget and prevented unjustified expenditure of EUR 197.9 million.
  • OLAF opened 192 new investigations, following 1017 preliminary analyzes carried out by its experts.
  • OLAF forwarded to the European Public Prosecutor’s Office 71 cases with possible criminal offences, of which 16 were done on behalf of the European Commission.

Protection of EU funds

As in previous years, OLAF’s investigations into the spending of EU funds concerned allegations of collusion, manipulation of procurement procedures, conflicts of interest and overcharging.

The rise in digital fraud confirms the trend observed by OLAF in recent years. In 2022, OLAF set up an expert group focusing on electronic anti-fraud tools for the EU’s Recovery and Resilience Mechanism (RESM) and started investigating cases of possible misuse of SMA funding.

Countering counterfeit products and smugglers

The fight against counterfeiting and smuggling remains a central component of OLAF’s operations. In 2022, OLAF co-organized or provided support to various customs operations and other operational actions.

These actions have helped to seize millions of counterfeit and dangerous items before they reach the market, including: counterfeit medicines, counterfeit and potentially dangerous toys, 531 million contraband cigarettes and 14.7 million liters of illegal wine, beer and other spirits.

Supporting Ukraine and imposing sanctions against Russia

In 2022 we witnessed Russia’s invasion of Ukraine. OLAF has long-standing cooperation with the Ukrainian authorities, both on the expenditure side of the EU budget (protection of EU funds) and on the revenue side (customs cooperation).

Since the start of the war, OLAF has been providing assistance to Ukraine’s anti-fraud services by helping to strengthen and improve the country’s structures to tackle fraud and corruption and to protect current and future funding it receives from EU.

OLAF also played an important role in tackling the circumvention of EU sanctions against Russia and Belarus following the invasion of Ukraine, as detailed in OLAF’s 2022 report.

Combating misconduct

No instance of irregular or fraudulent behavior by EU officials or members of the EU institutions can be tolerated. EU citizens rightly demand the highest standards of behavior from their institutions, members and staff. OLAF completed 38 investigations into fraudulent or irregular behavior by officials and members of the EU institutions last year.

Investigating these cases ensures that EU taxpayers’ money is well managed and ethical rules are strictly adhered to, thus helping to protect the image and reputation of the EU as a whole.

OLAF’s 2022 report is published on OLAF’s website, in a full interactive version and in a short version.

OLAF’s mission, mandate and powers

OLAF’s mission is to detect, investigate and combat fraud against EU funds.

OLAF fulfills its mission by:

  • conducting independent investigations into cases of fraud and corruption against EU funds to ensure that all EU taxpayers’ money goes to projects that can create jobs and growth in Europe;
  • its contribution to strengthening citizens’ trust in EU institutions by investigating serious misconduct committed by EU officials and members of its institutions;
  • establishing an effective EU anti-fraud policy.

As part of its mission to carry out independent investigations, OLAF may investigate matters related to fraud, corruption and other offenses against the EU’s financial interests regarding:

  • all EU expenditure: the main categories of expenditure are structural funds, agricultural policy and rural development funds, direct expenditure and external aid;
  • certain sources of EU revenue, notably customs duties;
  • suspicions of serious misconduct committed by EU officials and members of the EU institutions.

After OLAF’s investigation is completed, it is up to the relevant EU and National Authorities to consider OLAF’s recommendations and decide how to follow them up. Each person involved is presumed innocent until proven guilty before a competent National or Union court.

Lena Flitzani