European Public Prosecutor’s Office annual report warns that serious organised crime continues to exploit EU revenue
25 Mar 2024
The EPPO in a nutshell
The European Public Prosecutor’s Office (EPPO), whose mission is to investigate and prosecute offences detrimental to the EU budget such as money laundering, corruption and cross-border VAT fraud, operates as a single office across all participating EU countries (22 Member States including Belgium) and combines European and national law enforcement efforts in a unified approach.
Every year, the EPPO details its activities throughout the year in a report, with a specific focus on each country.
The 2023 Annual Report
The latest Annual Report from the EPPO reveals that as of the end of 2023, it had 1,927 active investigations totalling estimated damage of €19.2 billion to the EU budget. Of these investigations 59% were linked to serious cross-border VAT fraud.
Organised crime, particularly in sophisticated VAT fraud schemes, poses a significant challenge. Even emerging areas like NextGenerationEU funding projects are targeted, with estimated damage of over €1.8 billion across the 206 active investigations.
The report shows improved detection and operational performance in several areas such as the number of investigations, received and processed reports, indictments, freezing orders and improved cooperation between the EPPO and the relevant national authorities.
Yet, the estimated damage is only a fraction of the vast illicit profits of criminal networks, which could exceed hundreds of billions annually, according to recent estimates.
A focus on Belgium in 2023
The number of active investigations remained relatively stable, reaching €1.33 billion of damage for 54 ongoing cases in 2023.
Freezing orders worth €303.3 million were granted in 2023. Besides, 8 individuals have been prosecuted, indicating a positive trend.
The report also shows an increased number of complaints filed by private parties and national authorities, which highlights the growing utilisation and effectiveness of the EPPO.
Key takeaway
The EPPO annual report shows that organized fraud remains a significant concern in society. As also businesses can be unwillingly and unknowingly involved in organised fraud and as a consequence can suffer damages, it is crucial to remain vigilant and proactive in addressing potential risks related to financial fraud (e.g. VAT-fraud), money laundering, and corruption.
If you suspect being a victim of organised fraud, don’t hesitate to contact us for assistance.
Link to the full report here.
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