Executive summary

OLAF: detect, investigate, protect

The European Anti-Fraud Office (OLAF) is an investigative body at the service of EU citizens working across the EU and around the world to protect the EU’s budget and reputation from fraud and irregularities. In doing its work, OLAF protects the health and safety of Europeans, the environment, and Europe’s competitiveness and growth.

This report provides some insights into the work of the Office in 2023, ranging from unravelling complex frauds schemes using EU funds and manipulated tender procedures, actions to prevent smuggling and counterfeiting to protecting EU funds and customs duties.

In 2023, OLAF recommended over one billion euro for recovery by the relevant authorities.

In its 25 years of existence, OLAF has accumulated a wealth of experience in identifying and investigating fraudulent activities and irregularities. OLAF works independently at the heart of its unique, wide network of bodies, offices and organisations across the globe. Many of the success stories in this report are based on cooperation, a strong sign that the EU anti-fraud architecture is working well.

There are numerous examples in this report of how OLAF cooperation with relevant partners has delivered results. The year also saw just under €300 billion of Recovery and Resilience Facility (RRF) funding being distributed to Member State governments. In the past, OLAF advised Member State governments on how to protect the RRF from fraud. Last year OLAF started to investigate instances of fraud against the facility. One such example is contained in this report.

In 2023, Ukraine continued to defend itself from the war of aggression from Russia. The EU strengthened its sanctions against Russia and Belarus and OLAF continued to support the Member States in detecting and investigating attempts to circumvent the EU sanctions. In 2023, the EU budget has enabled €19.5 billion in assistance to Ukraine, including an unprecedented support package of €18 billion in concessional loans. OLAF provided training for Ukrainian anti-fraud authorities on how to identify and deal with fraud and corruption. OLAF was capable of carrying out some investigations in Ukraine into potential fraud involving EU funds, one of which is featured in this report.

OLAF's investigative activity in 2023

The main fraud schemes that OLAF detected and investigated in 2023 were allegations and instances of collusion, manipulation of procurement procedures, conflicts of interest, inflated invoices, evasion of customs duties, smuggling and counterfeiting. OLAF continued to work hard to counter the challenges posed by unfair economic practices, thus protecting revenue streams, the European industry, producers and citizens.

Fraudsters can quickly move across borders and jurisdictions, relocate their activities and break them up in tiny pieces that make it very hard for public authorities working in their national jurisdictions to detect and understand. One important trend of the last couple of years, which was very visible in 2023, is the use of administrative violations, preferably in artificially created cross-border situations, with the aim to defraud the EU budget without being detected. This worrying trend can only be combatted effectively with the intervention of OLAF as a cross-border administrative investigative body.

OLAF’s fight against counterfeiting and smuggling of dangerous products

OLAF also coordinated and provided support to 13 Joint Customs Operations (JCOs) to combat the illegal trade in illicit, counterfeit and potentially dangerous goods. These actions resulted in the seizure of millions of hazardous toys, counterfeit medicines, and illicit ozone depleting gasses.

OLAF contributed to actions by national authorities against the illegal trade in illicit tobacco products by criminal networks, the profits of which are often reinvested by the networks to fund their other criminal activities.

During the year OLAF helped seize 616 million cigarettes, 140 tons of raw tobacco and 6 tons of water pipe tobacco, preventing losses of over €151 million to the EU and national budgets.