OLAF’s investigative performance and fraud trends in 2022
OLAF had a strong investigative performance in 2022. After analysing 5567 pieces of new incoming information from private and public sources (as well as from OLAF’s own sources) 1017 selections were made during the year. 192 investigations were opened with 256 investigations being successfully concluded during the year, leading to OLAF issuing 275 financial, judicial, disciplinary and administrative recommendations to competent authorities at EU and national levels. In 2022, exceptional efforts made to conclude an important number of investigations impacted by the COVID period. These 256 successfully closed cases concerned over €624 million of EU taxpayers’ money: in total OLAF recommended €426.8 million for recovery and prevented the loss of €197.9 million from the EU budget.
The main trends in OLAF’s work in 2022
The main trends in fraud in 2022 were mostly those observed over past years with some increases in frauds taking place digitally. OLAF investigated allegations and instances of collusion, manipulation of procurement procedures, conflicts of interest, inflated invoices, evasion of customs duties, smuggling and counterfeiting.
During the COVID-19 pandemic people carried out many aspects of their lives digitally, from shopping to communication, and as the world became more digital, so too did the fraud. Increasing fraudulent activities were carried online and in multiple jurisdictions. This has posed new challenges to OLAF investigators and analysts alike, in tracking down key pieces of data and finding ways to deal with work across boundaries to build a bigger picture of fraudulent organisations. How OLAF managed to overcome these challenges is explored further in this section.
2022 marked the year when hundreds of billions from the Recovery and Resilience Facility funding were disbursed to help Member States recover from the pandemic. - OLAF provided continuous support and advice to national authorities emphasising the importance of the early detection of irregularities due to the new ways in which the money was distributed and accounted for, as well as the large amounts on offer. As the billions started to flow, OLAF started to investigate first cases into expenditure fraud related to RRF funds.
The year also witnessed the illegal and brutal invasion of Ukraine by Russia. OLAF has had a 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 beginning of the war OLAF has supported Ukraine’s anti-fraud authorities, to help strengthen and improve the country’s structures to deal with fraud and corruption and to protect current and future EU funding. This partnership continues in 2023. OLAF has also played a leading role in preventing evasion of EU sanctions against Russia and Belarus following the invasion.
As in previous years, tackling smuggling was another of OLAF’s core activities in 2022. No more so than the smuggling of cigarettes, where OLAF helped custom officials around the globe impound 531 million illicitly traded cigarettes, over 205 tonnes of raw tobacco and 65 tonnes of water-pipe tobacco. These seizures have saved roughly € 153 million in lost customs, excise and VAT revenue (see also section "Dealing with smuggling", which details some of OLAF’s successes against smugglers during 2022).