Foreword

With immense pride, I present the annual report of the European Anti-Fraud Office (OLAF) for the period of 1 January 2024 to 31 December 2024.

This year has been a testament to OLAF's unwavering commitment and impactful work, culminating in the conclusion of 246 investigations, the initiation of 230 new ones, and the recommendation for the recovery of over €870 million to the EU budget. We also thwarted the potential loss of €43.5 million in EU funds to fraud.

This report vividly captures OLAF’s robust activities to defend the EU’s financial interests. We dismantled a major corruption network in Hungary that compromised 112 EU -funded projects, exposed overpriced generators intended for Ukraine, and facilitated the seizure of hundreds of thousands of counterfeit goods tied to major sporting events.

The report looks at our efforts in 2024 against commercial fraud, such as evasion of import duties and VAT, that had an estimated impact of €623 million, either through recommended recoveries or prevented losses. It also highlights how we helped our partners combat cigarettes and tobacco smuggling resulting in the seizure of almost 130 million illicit cigarettes and 310 tons of raw tobacco, preventing losses of over €96 million to the EU and national budgets.

On a personal note, this document holds special significance as it marks the conclusion of my 7-year tenure as OLAF's Director-General. As my seventh and final annual report, it offers a moment for reflection on the pivotal developments of the past seven years and insights for safeguarding our Union’s budget in the future.

I am deeply honoured to have led the only EU Office empowered to recover misused funds and prevent potential financial missteps. Over the past seven years, having closed 1588 investigations, OLAF recommended to recover more than €4 billion of EU funds and to prevent the undue spending of more than €810 million.

I take great pride in OLAF's role as an enabler of ‘more Europe’ by ensuring the correct spending of taxpayers’ money and helping create a level playing field for companies and individuals rooted in the rule of law.

It is also an immense satisfaction for me that our investigations also contributed to protecting citizens’ health and safety, safeguarded the environment, and helped preserve the image and the reputation of the EU institutions.

During my mandate, the Union strengthened its defence against fund mismanagement, notably with the contributions of our partners at the European Public Prosecutor's Office (EPPO), showcasing incredible figures. New promising ventures lie ahead, such as the establishment of the Union’s Anti-Money Laundering Authority and a future Customs Agency at the Union level.

In 2018, I embarked on a mission to enhance cooperation across the budgetary control landscape. Today, I am delighted that OLAF’s partnerships with the European Court of Auditors, EUROJUST, EUROPOL, and the EPPO have never been more effective, enabling seamless collaboration both within the EU and globally. The report you are reading spotlights numerous examples of these achievements.

Today, OLAF boasts liaison staff, maintains a presence in Luxembourg, and conducts joint training initiatives with anti-fraud partners. In an increasingly digital world, we are continuously improving interoperability and data sharing.

In exactly this spirit of cooperation in challenging times, President von der Leyen mandated Budget, Anti-fraud, and Administration Commissioner Serafin to initiate a review of the European anti-fraud architecture. This review process has been launched at a timely juncture, as the Commission is due to present its proposal for a new multi-annual financial framework.

I am proud to say that during my tenure OLAF built up capacity and competences that will allow it to be major player in the new anti-fraud architecture, ready to face the challenges presented by an enhanced cooperation with partners as well as the responsibilities linked with new advanced technology, interoperability and data analytics.

In the last part of my mandate Europe has witnessed two monumental disruptions to our way of life and business and I can proudly say that OLAF adapted very quickly. In 2021, we found ourselves in the business of saving lives when we tracked down fake facemasks and prevented EU governments from signing fake contracts for COVID vaccines avoiding losses of around €16.5 billion. Subsequently, the fallout shaped the current EU budget, including the €800 billion loan-financed Next Generation EU fund for recovery and resilience.

More recently, further compounded by the unprovoked Russian invasion of Ukraine, the European Union faced an unmatched emergency situation. This crisis prompted a strategic reorientation of EU support towards Ukraine and the establishment of a comprehensive sanctions regime against Russia and Belarus. Working closely with European and international partners, OLAF has adapted to fortify Ukraine's anti-fraud efforts and enforce sanctions.

These unprecedented challenges will certainly influence the design of the next multi-annual financial framework, propelling Europe’s competitiveness and preparedness. OLAF stands poised and motivated to ensure that a new, ambitious EU budget is rigorously and effectively protected in the context of a new anti-fraud architecture. I am proud that OLAF enjoys excellent relations with its Supervisory Committee and that the Controller of Procedural Guarantees confirmed OLAF's works in all her assessments closed in 2024.

As I prepare to pass the torch, it will be my successor’s task, alongside our partners, to tackle an increasingly complex and sophisticated fraud landscape. A fundamental requirement for their success will be ensuring that OLAF retains a critical level of resources, as during my tenure we have delivered excellent results despite a reduction of 35 posts, almost 10% of our entire workforce.

Last year, our investigative efforts resulted in the recovery or prevention of spending approximately 600 million euros. When juxtaposed with the annual operational cost of OLAF, which stands at 67 million euros, it is evident that for every euro invested in OLAF, we reap a return of roughly 9 euros. This impressive ratio reconfirms a strong return on investment of our operations.

In 2024, we celebrated OLAF’s 25th anniversary. From our origins in a Union of 15 Member States communicating by fax, we have evolved and adapted, always recognising our purpose: to ensure fairness and protect EU citizens, businesses, and communities. The closer we collaborate, the better outcomes we achieve, more effectively safeguarding taxpayers’ money and deterring potential fraudsters.

I extend my heartfelt gratitude to my exceptional team at OLAF, our partners, and allies across numerous organisations. You are the driving force ensuring OLAF remains central to the EU anti-fraud architecture, championing fairness, safeguarding EU financial interests, and shielding citizens.

Ville Itälä
Director-General of OLAF