Fighting fraud through international cooperation

Finnish Customs and the European Anti-Fraud Office (OLAF) have cooperated effectively for 25 years. International operations safeguard the financial interests of the EU and protect the citizens and legitimate businesses.

The European Anti-Fraud Office (OLAF) began its operations in June 1999. A lot has happened in those 25 years – including successful joint operations with national customs authorities, such as Finnish Customs.

OLAF's mission is to detect, investigate and stop fraudulent use of EU funds as well as to develop the European Commission’s anti-fraud policy. OLAF cooperates closely e.g. with the national authorities of the EU Member States and Europol.

– On behalf of Finnish Customs, I would like to congratulate OLAF for 25 years of successful anti-fraud work and to thank OLAF for smooth cooperation. At the same time, we should already be looking ahead. The world changes and technology develops, which means that frauds also change and develop. The significance of cooperation and information exchange will not be reduced, on the contrary. For us at Finnish Customs, it is important that international networks are functioning. That’s why I have confidence that we can fight fraud successfully through international cooperation in the next 25 years as well, says Samy Gardemeister, Director of the Enforcement Department of Finnish Customs regarding the cooperation with OLAF.

International operations combine the strength and competence of authorities

Operation WAREHOUSE III, coordinated under the supervision of Finnish Customs in 2016, is a good example of how OLAF and the customs authorities of the EU Member States can cooperate effectively to fight fraud. The operation targeted the smuggling of excise goods, such as tobacco products and alcohol in Europe. Using sophisticated operating models that are difficult to trace, criminal organisations brought in excise goods into the EU on a daily basis, declaring them with information designed to mislead the authorities. These activities caused major financial losses to the EU and its Member States.

During the operation, OLAF offered logistical, financial and technical support for the exchange of real-time information and intelligence. Finland coordinated the operational coordination unit at the OLAF’s premises in Brussels, which made communication between the national contact points easier.

Another example of a successful operation is Belenos, which uncovered illicit movements of €18 million of cash potentially linked to money laundering, transnational criminal activities and terrorism financing. 25 EU Member States participated in the operation carried out in 2022.

– The operations are important when it comes to preventing illicit trade, intensifying cooperation and information exchange as well as to developing the internal processes of Finnish Customs. During intensified action, the operations may not always achieve the quantitative goals set in advance, but the operations still accumulate important timely information about international illicit activities as well as about the new modi operandi and smuggling routes used by criminals. International operations help customs administrations to better observe and monitor professional and serious crime. By acting together it is easier to prevent even complex problems. Successful operations strengthen mutual trust and improve overall national security, says Gardemeister about the importance of joint operations.

In November 2019, as part of Finland’s Presidency of the Council of the EU, OLAF and Finnish Customs organised a joint conference on EU fraud in the city of Vantaa. The conference attracted a hundred or so participants from EU member states, the Commission and the World Customs Organisation (WCO). One of the giants of online shopping, Amazon, represented the business sector. The theme of the conference – which is still relevant – was the intensifying pace at which international trade is migrating to online channels (eCommerce), thus posing new types of performance and enforcement challenges for customs authorities. Alternatives for new practices and techniques were presented at the conference, and there was also discussion about how OLAF could be more efficient in helping authorities in the Member States combat crime occurring in online retail. 

International funding is used to safeguard the financial interests of the EU and to purchase e.g. control equipment

In addition to national funding, Finnish Customs can also receive funding through the various EU funding instruments. One source of funding has been OLAF’s Hercule III programme. The aim of the programme was to reduce the opportunities for fraud and irregularities in the EU territory. The programme provided funding e.g. for actions pertaining to analysis, storage and destruction of seized substances, for vehicle recognition systems as well as for control equipment.

– Funding is of considerable importance. For example, Finnish Customs acquired a new X-ray vehicle with the help of the programme, says Gardemeister.

Currently, OLAF’s funding programme is the Union Anti-Fraud Programme (UAFP). The UAFP funds actions that prevent and combat fraud, corruption and any other illegal activities damaging the EU’s financial interests. Funding can also be granted e.g. for technical and operational investigation support, specialised training and research activities. With the financial support, the Member State customs administrations can purchase technical equipment and tools, such as investigation and surveillance equipment, forensic tools, and tools to analyse data. The funding programme also supports training, staff exchanges, risk-analysis workshops, conferences, and comparative studies. Funding is provided in the form of grants or agreements.