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Maltese Laws |
An Act to provide for the protection of the European Communities’ financial interests and to make provision for the criminal prosecution of fraudulent conduct injuring those interests whilst adopting a common definition.
BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-
European Communities’ Financial Interests signed in Brussels on the
26th of July 1995 and the First, Second and the ECJ Protocol thereto;
"ECJ Protocol" means the Protocol on the Interpretation by way of preliminary rulings, by the Court of Justice of the European
Communities of the Convention;
"European Communities" includes the institutions of the
European Union;
"the European Union" shall have the meaning as assigned to it in the European Union Act;
"Member State" means any State which is a member of the
European Union;
"person" as referred to in the provisions of the laws mentioned in article 3, includes the European Communities and the
institutions
Short title. Interpretation.
Cap. 460.
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of the European Union;
Applicability of provisions of
the Criminal
Code and of the
Prevention of
Money
Laundering Act.
Cap. 9.
Cap. 373.
Enforcement of
Convention.
Language of
Schedule.
"Treaty on European Union" means the Treaty between the Kingdom of Belgium, the Kingdom of Denmark, the Federal
Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy
of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom
of Sweden, the United Kingdom of Great Britain and Northern Ireland (Member States of the European Union) and the Czech Republic,
the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the
Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic, concerning the accession of the Czech
Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary,
the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union, signed in
Athens on the 16th day of April, 2003, of which an electronic copy of the Maltese and English texts was laid on the Table of the
House on the 23rd day of June, 2003, and includes any other treaty, agreement or protocol to which Malta became a party or
which became applicable to Malta in virtue thereof.
3. For the avoidance of any doubt, the provisions of Sub-Title II of Title V and of Sub-Title III of Title IX of Part II of Book First
of the Criminal Code and the provisions of the Prevention of Money Laundering Act shall, mutatis mutandis, apply when the offences therein are committed to the detriment and to the prejudice of the European Communities.
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THE HIGH CONTRACTING PARTIES to this Convention, Member States of the European Union,
REFERRING to the Act of the Council of the European Union of 26 July
1995;
DESIRING to ensure that their criminal laws contribute effectively to the protection of the financial interests of the European Communities;
NOTING that fraud affecting Community revenue and expenditure in many cases is not confined to a single country and is often committed
by organized criminal networks;
CONVINCED that protection of the European Communities' financial interests calls for the criminal prosecution of fraudulent conduct
injuring those interests and requires, for that purpose, the adoption of a common definition;
CONVINCED of the need to make such conduct punishable with effective, proportionate and dissuasive criminal penalties, without
prejudice to the possibility of applying other penalties in appropriate cases, and of the need, at least in serious cases,
to make such conduct punishable with deprivation of liberty which can give rise to extradition;
RECOGNIZING that businesses play an important role in the areas financed by the European Communities and that those with decision-making
powers in business should not escape criminal responsibility in appropriate circumstances;
DETERMINED to combat together fraud affecting the European Communities' financial interests by undertaking obligations concerning
jurisdiction, extradition, and mutual cooperation,
HAVE AGREED ON THE FOLLOWING PROVISIONS:
1. For the purposes of this Convention, fraud affecting the European
Communities' financial interests shall consist of:
(a) in respect of expenditure, any intentional act or omission relating to:
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- the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the
misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on
behalf of, the European Communities,
- non-disclosure of information in violation of a specific obligation, with the same effect,
- the misapplication of such funds for purposes other than those for which they were originally granted;
(b) in respect of revenue, any intentional act or omission relating to:
- the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the
illegal diminution of the resources of the general budget of the European Communities or budgets managed by, or on behalf of, the
European Communities,
- non-disclosure of information in violation of a specific obligation, with the same effect,
- misapplication of a legally obtained benefit, with the same effect.
2. Subject to Article 2 (2), each Member State shall take the necessary and appropriate measures to transpose paragraph 1 into
their national criminal law in such a way that the conduct referred to therein constitutes criminal offences.
3. Subject to Article 2 (2), each Member State shall also take the necessary measures to ensure that the intentional preparation
or supply of false, incorrect or incomplete statements or documents having the effect described in paragraph 1 constitutes a criminal
offence if it is not already punishable as a principal offence or as participation in, instigation of, or attempt to commit, fraud
as defined in paragraph 1.
4. The intentional nature of an act or omission as referred to in paragraphs
1 and 3 may be inferred from objective, factual circumstances.
1. Each Member State shall take the necessary measures to ensure that the conduct referred to in Article 1, and participating
in, instigating, or attempting the conduct referred to in Article 1 (1), are punishable by effective, proportionate and dissuasive
criminal penalties, including, at least in cases of serious fraud, penalties involving deprivation of liberty which can give rise
to extradition, it being understood that serious fraud shall be considered to be fraud involving a minimum
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amount to be set in each Member State. This minimum amount may not be set at a sum exceeding ECU 50 000.
2. However in cases of minor fraud involving a total amount of less than ECU 4 000 and not involving particularly serious circumstances
under its laws, a Member State may provide for penalties of a different type from those laid down in paragraph 1.
3. The Council of the European Union, acting unanimously, may alter the amount referred to in paragraph 2.
Each Member State shall take the necessary measures to allow heads of businesses or any persons having power to take decisions or exercise control within a business to be declared criminally liable in accordance with the principles defined by its national law in cases of fraud affecting the European Community's financial interests, as referred to in Article 1, by a person under their authority acting on behalf of the business.
1. Each Member State shall take the necessary measures to establish its jurisdiction over the offences it has established in accordance
with Article 1 and 2 (1) when:
- fraud, participation in fraud or attempted fraud affecting the European Communities' financial interests is committed
in whole or in part within its territory, including fraud for which the benefit was obtained in that territory,
- a person within its territory knowingly assists or induces the commission of such fraud within the territory of any other
State,
- the offender is a national of the Member State concerned, provided that the law of that Member State may require
the conduct to be punishable also in the country where it occurred.
2. Each Member State may declare, when giving the notification referred to in Article 11 (2), that it will not apply the rule
laid down in the third indent of paragraph 1 of this Article.
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1. Any Member State which, under its law, does not extradite its own nationals shall take the necessary measures to establish
its jurisdiction over the offences it has established in accordance with Articles 1 and 2 (1), when committed by its
own nationals outside its territory.
2. Each Member State shall, when one of its nationals is alleged to have committed in another Member State a criminal offence
involving the conduct described in Articles 1 and 2 (1), and it does not extradite that person to that other Member State solely
on the ground of his or her nationality, submit the case to its competent authorities for the purpose of prosecution if appropriate.
In order to enable prosecution to take place, the files, information and exhibits relating to the offence shall be transmitted in
accordance with the procedures laid down in Article
6 of the European Convention on Extradition. The requesting Member State shall
be informed of the prosecution initiated and of its outcome.
3. A Member State may not refuse extradition in the event of fraud affecting the European Communities' financial
interests for the sole reason that it concerns a tax or customs duty offence.
4. For the purposes of this Article, a Member State's own nationals shall be construed in accordance with any declaration
made by it under Article 6 (1) (b) of the European Convention on Extradition and with paragraph 1 (c) of the Article.
1. If a fraud as defined in Article 1 constitutes a criminal offence and concerns at least two Member States, those States shall
cooperate effectively in the investigation, the prosecution and in carrying out the punishment imposed by means, for example, of
mutual legal assistance, extradition, transfer of proceedings or enforcement of sentences passed in another Member State.
2. Where more than one Member State has jurisdiction and has the possibility of viable prosecution of an offence based
on the same facts, the Member States involved shall cooperate in deciding which shall prosecute the offender or offenders with
a view to centralizing the prosecution in a single Member State where possible.
Ne bis in idem
1. Member States shall apply in their national criminal laws the 'ne bis in idem' rule, under which a person whose trial has been finally disposed of in a Member State may not be prosecuted in another Member State
in respect of the
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same facts, provided that if a penalty was imposed, it has been enforced, is actually in the process of being enforced or can no longer
be enforced under the laws of the sentencing State.
2. A Member State may, when giving the notification referred to in Article
11 (2), declare that it shall not be bound by paragraph 1 of this Article in one or more of the following cases:
(a) if the facts which were the subject of the judgement rendered abroad took place on its own territory either in whole or in
part; in the latter case this exception shall not apply if those facts took place partly on the territory of the Member State where
the judgement was rendered;
(b) if the facts which were the subject of the judgment rendered abroad constitute an offence directed against the security
or other equally essential interests of that Member State;
(c) if the facts which were the subject of the judgment rendered abroad were committed by an official of the Member State contrary
to the duties of his office.
3. The exceptions which may be the subject of a declaration under paragraph 2 shall not apply if the Member State concerned
in respect of the same facts requested the other Member State to bring the prosecution or granted extradition of the person concerned.
4. Relevant bilateral or multilateral agreements concluded between
Member States and relevant declarations shall remain unaffected by this Article.
1. Any dispute between Member States on the interpretation or application of this Convention must in an initial
stage be examined by the Council in accordance with the procedure set out in Title VI of the Treaty on European Union with a view
to reaching a solution.
If no solution is found within six months, the matter may be referred to the
Court of Justice of the European Communities by a party to the dispute.
2. Any dispute between one or more Member States and the Commission of the European Communities concerning the application of
Article 1 or 10 of this Convention which it has proved impossible to settle through negotiation may be submitted to the Court of
Justice.
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No provision in this Convention shall prevent Member States from adopting internal legal provisions which go beyond the obligations deriving from this Convention.
1. Member States shall transmit to the Commission of the European Communities the text of the provisions transposing into their
domestic law the obligations imposed on them under the provisions of this Convention.
2. For the purposes of implementing this Convention, the High Contracting Parties shall determine, within the
Council of the European Union, the information to be communicated or exchanged between the Member States or between the Member States
and the Commission, and also the arrangements for doing so.
1. This Convention shall be subject to adoption by the Member States in accordance with their respective constitutional requirements.
2. Member States shall notify the Secretary-General of the Council of the European Union of the completion of their constitutional
requirements for adopting this Convention.
3. This Convention shall enter into force 90 days after the notification, referred to in paragraph 2, by the last Member State
to fulfil that formality.
1. This Convention shall be open to accession by any State that becomes a member of the European Union.
2. The text of this Convention in the language of the acceding State, drawn up by the Council of the European Union, shall be
authentic.
3. Instruments of accession shall be deposited with the depositary.
4. This Convention shall enter into force with respect to any State that accedes to it 90 days after the deposit of its instrument
of accession or on the date of entry into force of the Convention if it has not already entered into force at the time of expiry
of the said period 90 days.
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1. The Secretary-General of the Council of the European Union shall act as depositary of this Convention.
2. The depositary shall publish in the Official Journal of the European Communities information on the progress of
adoptions and accessions, declarations and reservations, and also any other notification concerning this Convention.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set their hands.
DONE AT Brussels on the twenty-sixth day of July in the year one thousand nine hundred and ninety-five in a single original, in the
Danish, Dutch, English, Finnish, French, German, Greek, Irish, Italian, Portuguese, Spanish and Swedish languages, each text being
equally authentic, such original remaining deposited in the archives of the General Secretariat of the Council of the European Union.
THE HIGH CONTRACTING PARTIES to this Protocol, Member States of the European Union,
REFERRING to the Act of the Council of the European Union of 27
September 1996,
DESIRING to ensure that their criminal laws contribute effectively to the protection of the financial interests of the European Communities;
RECOGNIZING the importance of the Convention on the protection of the European Communities' financial interests of 26 July 1995
for combating fraud affecting Community revenue and expenditure;
AWARE that the financial interests of the European Communities may be damaged or threatened by other criminal offences, particularly
acts of corruption by or against national and Community officials, responsible for the collection, management or disbursement of
Community funds under their control;
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CONSIDERING that people of different nationalities, employed by different public agencies or bodies, may be involved in such corruption
and that, in the interests of effective action against such corruption with international ramifications, it is important
for their reprehensible nature to be perceived in a similar manner under Member States' criminal laws;
NOTING that several Member States' criminal law on crime linked to the exercise of public duties in general and concerning corruption
in particular covers only acts committed by or against their national officials and does not cover, or covers only in exceptional
cases, conduct involving Community officials or officials of other Member States;
CONVINCED of the need for national law to be adapted where it does not penalize acts of corruption that damage or are likely to damage
the financial interests of the European Communities involving Community officials or officials of other Member States;
CONVINCED also that such adaptation of national law should not be confined, in respect of Community officials, to acts of active or
passive corruption, but should be extended to other crimes affecting or likely to affect the revenue or expenditure of the European
Communities, including crimes committed by or against persons in whom the highest responsibilities are vested;
CONSIDERING that appropriate rules should also be laid down on jurisdiction and mutual cooperation, without prejudice to the legal
conditions under which they are to apply in specific cases, including waiver of immunity where appropriate;
CONSIDERING finally that the relevant provisions of the Convention on the protection of the European Communities' financial interests
of 26 July 1995 should be made applicable to the criminal acts covered by this Protocol,
HAVE AGREED ON THE FOLLOWING PROVISIONS:
For the purposes of this Protocol:
1. (a) ‘official’ shall mean any ‘Community’ or ‘national’ official, including any national official of another
Member State;
(b) the term ‘Community official’ shall mean:
- any person who is an official or other contracted employee within the meaning of the Staff Regulations of officials
of the European Communities or the Conditions of employment of other servants of the European Communities,
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- any person seconded to the European Communities by the Member States or by any public or private body, who carries
out functions equivalent to those performed by European Community officials or other servants.
Members of bodies set up in accordance with the Treaties establishing the European Communities and the staff of such bodies shall
be treated as Community officials, inasmuch as the Staff Regulations of the European Communities or the Conditions of employment
of other servants of the European Communities do not apply to them;
(c) the term ‘national official’ shall be understood by reference to the definition of ‘official’ or ‘public officer’
in the national law of the Member State in which the person in question performs that function for the purposes of application of
the criminal law of that Member State.
Nevertheless, in the case of proceedings involving a Member State's official initiated by another Member State the latter shall
not be bound to apply the definition of 'national official` except in so far as that definition is compatible with its national
law;
2. ‘Convention’ shall mean the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on
the protection of the European Communities' financial interests, of 26 July 1995 (1);
1. For the purposes of this Protocol, the deliberate action of an official, who, directly or through an intermediary, requests
or receives advantages of any kind whatsoever, for himself or for a third party, or accepts a promise of such an advantage, to act
or refrain from acting in accordance with his duty or in the exercise of his functions in breach of his official duties in a way
which damages or is likely to damage the European Communities' financial interests shall constitute passive corruption.
2. Each Member State shall take the necessary measures to ensure that conduct of the type referred to in paragraph 1 is made a
criminal offence.
1. For the purposes of this Protocol, the deliberate action of whosoever promises or gives, directly or through an intermediary,
an advantage of any kind whatsoever to an official for himself or for a third party for him to act or refrain from acting in accordance
with his duty or in the exercise of his functions in breach of his official duties in a way which damages or is likely to damage
the
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European Communities' financial interests shall constitute active corruption.
2. Each Member State shall take the necessary measures to ensure that conduct of the type referred to in paragraph 1 is made
a criminal offence.
1. Each Member State shall take the necessary measures to ensure that in its criminal law the descriptions of the offences constituting
conduct of the type referred to in Article 1 of the Convention committed by its national officials in the exercise of their functions
apply similarly in cases where such offences are committed by Community officials in the exercise of their duties.
2. Each Member State shall take the necessary measures to ensure that in its criminal law the descriptions of the offences referred
to in paragraph 1 of this Article and in Articles 2 and 3 committed by or against its Government Ministers, elected members of its
parliamentary chambers, the members of its highest Courts or the members of its Court of Auditors in the exercise of their functions
apply similarly in cases where such offences are committed by or against members of the Commission of the European Communities, the
European Parliament, the Court of Justice and the Court of Auditors of the European Communities respectively in the exercise of their
duties.
3. Where a Member State has enacted special legislation concerning acts or omissions for which Government Ministers are responsible
by reason of their special political position in that Member State, paragraph 2 of this Article may not apply to such legislation,
provided that the Member State ensures that Members of the Commission of the European Community are covered by the criminal legislation
implementing Articles 2 and 3 and paragraph 1 of this Article.
4. Paragraphs 1, 2 and 3 shall be without prejudice to the provisions applicable in each Member State concerning criminal
proceedings and the determination of the competent court.
5. This Protocol shall apply in full accordance with the relevant provisions of the Treaties establishing the European
Communities, the Protocol on the Privileges and Immunities of the European Communities, the Statutes of the Court of Justice and
the texts adopted for the purpose of their implementation, as regards the withdrawal of immunity.
1. Each Member State shall take the necessary measures to ensure that the conduct referred to in Articles 2 and 3, and participating
in and instigating the conduct in question, are punishable by effective, proportionate and dissuasive
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criminal penalties, including, at least in serious cases, penalties involving deprivation of liberty which can give rise
to extradition.
2. Paragraph 1 shall be without prejudice to the exercise of disciplinary powers by the competent authorities against national
officials or Community officials. In determining the penalty to be imposed, the national criminal courts may, in accordance with
the principles of their national law, take into account any disciplinary penalty already imposed on the same person for the same
conduct.
1. Each Member State shall take the measures necessary to establish its jurisdiction over the offences it has established in
accordance with Articles 2, 3 and 4 where:
(a) the offence is committed in whole or in part within its territory; (b) the offender is one of its nationals or one
of its officials;
(c) the offence is committed against one of the persons referred to in Article 1 or a member of one of the institutions referred
to in Article 4 (2) who is one of its nationals;
(d) the offender is a Community official working for a European Community institution or a body set up in accordance with the
Treaties establishing the European Communities which has its headquarters in the Member State concerned.
2. Each Member State may declare when giving the notification provided for in Article 9 (2) that it will not apply or will apply
only in specific cases or conditions one or more of the jurisdiction rules laid down in paragraph 1 (b), (c), and (d).
1. Articles 3, 5 (1), (2) and (4) and Article 6 of the Convention shall apply as if there were a reference to the conduct referred
to in Articles 2, 3 and 4 of this Protocol.
2. The following provisions of the Convention shall also apply to this
Protocol:
- Article 7, on the understanding that, unless otherwise indicated at the time of the notification provided for in Article
9 (2) of this Protocol, any declaration within the meaning of Article 7 (2) of the Convention shall also apply to this Protocol,
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- Article 9,
- Article 10.
1. Any dispute between Member States on the interpretation or application of this Protocol must in an initial stage be examined
by the Council in accordance with the procedure set out in Title VI of the Treaty on European Union with a view to reaching a solution.
If no solution is found within six months, the matter may be referred to the
Court of Justice of the European Communities by a party to the dispute.
2. Any dispute between one or more Member States and the Commission of the European Communities concerning Article 1, with the
exception of point 1 (c), or Articles 2, 3 and 4, or the third indent of Article 7 (2) of this Protocol which it has proved impossible
to settle through negotiation may be submitted to the Court of Justice of the European Communities.
1. This Protocol shall be subject to adoption by the Member States in accordance with their respective constitutional requirements.
2. Member States shall notify the Secretary-General of the Council of the European Union of the completion of the procedures
required under their respective constitutional rules for adopting this Protocol.
3. This Protocol shall enter into force 90 days after the notification provided for in paragraph 2 has been given
by the State which, being a Member of the European Union at the time of adoption by the Council of the Act drawing up this Protocol,
is the last to fulfil that formality. If, however, the Convention has not entered into force on that date, this Protocol shall enter
into force on the date on which the Convention enters into force.
1. This Protocol shall be open to accession by any State that becomes a member of the European Union.
2. The text of this Protocol in the language of the acceding State, drawn up by the Council of the European Union, shall be authentic.
3. Instruments of accession shall be deposited with the depositary.
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4. This Protocol shall enter into force with respect to any State that accedes to it 90 days after the deposit of its
instrument of accession or on the date of entry into force of this Protocol if it has not yet entered into force at the time of expiry
of the said period of 90 days.
1. No reservation shall be authorized with the exception of those provided for in Article 6 (2).
2. Any Member State which has entered a reservation may withdraw it at any time in whole or in part by notifying the depositary.
Withdrawal shall take effect on the date on which the depositary receives the notification.
1. The Secretary-General of the Council of the European Union shall act as depositary of this Protocol.
2. The depositary shall publish in the Official Journal of the European Communities information on the progress of
adoptions and accessions, declarations and reservations and any other notification concerning this Protocol.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set their hands.
DONE IN a single original, in the Danish, Dutch, English, Finnish, French, German, Greek, Irish, Italian, Portuguese, Spanish and
Swedish languages, each text being equally authentic, such original remaining deposited in the archives of the General Secretariat
of the Council of the European Union.
THE HIGH CONTRACTING PARTIES to this Protocol, Member States of the European Union,
REFERRING to the Act of the Council of the European Union of 19 June
1997;
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DESIRING to ensure that their criminal laws contribute effectively to the protection of the financial interests of the European Communities;
RECOGNIZING the importance of the Convention on the protection of the European Communities' financial interests of 26 July 1995
in combating fraud affecting Community revenue and expenditure;
RECOGNIZING the importance of the Protocol of 27 September 1996 to the said Convention in the fight against corruption damaging or
likely to damage the European Communities' financial interests;
AWARE that the financial interests of the European Communities may be damaged or threatened by acts committed on behalf of legal persons
and acts involving money laundering;
CONVINCED of the need for national law to be adapted, where necessary, to provide that legal persons can be held liable in cases of
fraud or active corruption and money laundering committed for their benefit that damage or are likely to damage the European Communities'
financial interests;
CONVINCED of the need for national law to be adapted, where necessary, to penalize acts of laundering of proceeds of fraud or corruption
that damage or are likely to damage the European Communities' financial interests and to make it possible to confiscate proceeds
of such fraud and corruption;
CONVINCED of the need for national law to be adapted, where necessary, in order to prevent the refusal of mutual assistance solely
because offences covered by this Protocol concern or are considered as tax or customs duty offences;
NOTING that cooperation between Member States is already covered by the
Convention on the protection of the European Communities' financial interests of
26 July 1995, but that there is a need, without prejudice to obligations under Community law, for appropriate provision also
to be made for cooperation between member States and the Commission to ensure effective action against fraud, active and passive
corruption and related money laundering damaging or likely to damage the European Communities' financial interests,
including exchange of information between the Member States and the Commission;
CONSIDERING that, in order to encourage and facilitate the exchange of information, it is necessary to ensure adequate protection
of personal data;
CONSIDERING that the exchange of information should not hinder ongoing investigations and that it is therefore necessary to provide
for the protection of investigation secrecy;
CONSIDERING that appropriate provisions have to be drawn up on the competence of the Court of Justice of the European Communities;
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CONSIDERING finally that the relevant provisions of the Convention on the protection of the European Communities' financial interests
of 26 July 1995 should be made applicable to certain acts covered by this Protocol,
HAVE AGREED ON THE FOLLOWING PROVISIONS:
For the purposes of this Protocol:
(a) ‘Convention’ shall mean the Convention drawn up on the basis of Article K.3 of the Treaty on European Union on
the protection of the European Communities' financial interests, of 26 July 1995 (1);
(b) ‘fraud’ shall mean the conduct referred to in Article 1 of the
Convention;
(c) -‘passive corruption’ shall mean the conduct referred to in Article 2 of the Protocol drawn up on the basis of Article
K.3 of the Treaty on European Union to the convention on the protection of the European Communities' financial interests, of
27 September 1996 (2),
- ‘active corruption’ shall mean the conduct referred to in Article 3 of the same Protocol;
(d) ‘legal person’ shall mean any entity having such status under the applicable national law, except for States or other
public bodies in the exercise of State authority and for public international organizations;
(e) ‘money laundering’ shall mean the conduct as defined n the third indent of Article 1 of Council Directive 91/308/EEC of
10 June 1991 on the prevention of the use of the financial system for the purpose of money laundering (3), related to the proceeds
of fraud, at least in serious cases, and of active and passive corruption.
Each Member State shall take the necessary measures to establish money laundering as a criminal offence.
1. Each Member State shall take the necessary measures to ensure that legal persons can be held liable for fraud, active corruption
and money laundering committed for their benefit by any person, acting either individually or as part of
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an organ of the legal person, who has a leading position within the legal person, based on
- a power of representation of the legal person, or
- an authority to take decisions on behalf of the legal person, or
- an authority to exercise control within the legal person,
as well as for involvement as accessories or instigators in such fraud, active corruption or money laundering or the attempted commission
of such fraud.
2. Apart from the cases already provided for in paragraph 1, each Member State shall take the necessary measures to ensure that
a legal person can be held liable where the lack of supervision or control by a person referred to in paragraph
1 has made possible the commission of a fraud or an act of active corruption or money laundering for the benefit of that legal
person by a person under its
authority.
3. Liability of a legal person under paragraphs 1 and 2 shall not exclude criminal proceedings against natural persons who are
perpetrators, instigators or accessories in the fraud, active corruption or money laundering.
1. Each Member State shall take the necessary measures to ensure that a legal person held liable pursuant to Article 3 (1) is
punishable by effective, proportionate and dissuasive sanctions, which shall include criminal or non- criminal fines and may include
other sanctions such as:
(a) exclusion from entitlement to public benefits or aid;
(b) temporary or permanent disqualification from the practice of commercial activities;
(c) placing under judicial supervision; (d) a judicial winding-up order.
2. Each Member State shall take the necessary measures to ensure that a legal person held liable pursuant to Article 3 (2) is
punishable by effective, proportionate and dissuasive sanctions or measures.
Each Member State shall take the necessary measures to enable the seizure
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and, without prejudice to the rights of bona fide third parties, the confiscation or removal of the instruments and proceeds of fraud,
active and passive corruption and money laundering, or property the value of which corresponds to such proceeds. Any instruments,
proceeds or other property seized or confiscated shall be dealt with by the Member State in accordance with its national law.
A Member State may not refuse to provide mutual assistance in respect of fraud, active and passive corruption and money laundering for the sole reason that it concerns or is considered as a tax or customs duty offence.
1. The Member States and the Commission shall cooperate with each other in the fight against fraud, active and passive corruption
and money laundering.
To that end, the Commission shall lend such technical and operational assistance as the competent national authorities may need to
facilitate coordination of their investigations.
2. The competent authorities in the Member States may exchange information with the Commission so as to make it easier to establish
the facts and to ensure effective action against fraud, active and passive corruption and money laundering. The Commission and the
competent national authorities shall take account, in each specific case, of the requirements of investigation secrecy and data protection.
To that end, a Member State, when supplying information to the Commission, may set specific conditions covering the use of information,
whether by the Commission or by another Member State to which that information may be passed.
The Commission shall ensure that, in the context of the exchange of information under Article 7 (2), it shall observe, as regards
the processing of personal data, a level of protection equivalent to the level of protection set out in Directive 95/46/EC of the
European Parliament and of the Council of 24 October
1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (4).
The rules adopted concerning the obligations under Article 8 shall be
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published in the Official Journal of the European Communities.
1. Subject to any conditions referred to in Article 7 (2), the Commission may transfer personal data obtained from a Member State
in the performance of its functions under Article 7 to any other Member State. The Commission shall inform the Member State
which supplied the information of its intention to make such as transfer.
2. The Commission may, under the same conditions, transfer personal data obtained from a Member State in the performance of its
functions under Article 7 to any third country provided that the Member State which supplied the information has agreed
to such transfer.
Any authority designated or created for the purpose of exercising the function of independent data protection supervision over personal data held by the Commission pursuant to its functions under the Treaty establishing the European Community, shall be competent to exercise the same function with respect to personal data held by the Commission by virtue of this Protocol.
1. The provisions of Articles 3, 5 and 6 of the Convention shall also apply to the conduct referred to in Article 2 of this Protocol.
2. The following provisions of the Convention shall also apply to this
Protocol:
- Article 4, on the understanding that, unless otherwise indicated at the time of the notification provided for in Article
16 (2) of this Protocol, any declaration within the meaning of Article 4 (2) of the Convention, shall also apply to this Protocol,
- Article 7, on the understanding that the ne bis in idem principle also applies to legal persons, and that, unless otherwise
indicated at the time the notification provided for in Article 16 82) of this Protocol is being given, any declaration within the
meaning of Article 7 (2), of the Convention shall also apply to this Protocol,
- Article 9,
- Article 10.
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1. Any dispute between Member States on the interpretation or application of this Protocol must in an initial stage be examined
by the Council in accordance with the procedure set out in Title VI of the Treaty on European Union with a view to reaching a solution.
If no solution is found within six months, the matter may be referred to the
Court of Justice by a party to the dispute.
2. Any dispute between one or more Member States and the Commission concerning the application of Article 2 in relation to Article
1 (e), and Article 7, 8,
10 and 12 (2), fourth indent of this Protocol which it has proved impossible to
settle through negotiation may be submitted to the Court of Justice, after the expiry of a period of six months from the date on which
one of the parties has notified the other of the existence of a dispute.
3. The Protocol drawn up on the basis of Article K.3 of the Treaty on European Union, on the interpretation, by way of preliminary
rulings, by the Court of Justice of the European Communities of the Convention on the protection of the European Communities'
financial interests, of 29 November 1996 (5), shall apply to this Protocol, on the understanding that a declaration made by a Member
State pursuant to Article 2 of that Protocol is also valid regarding this Protocol unless the Member State concerned makes a declaration
to the contrary when giving the notification provided for in Article 16 (2) of this Protocol.
For the purposes of this Protocol, the non-contractual liability of the Community shall be governed by the second paragraph of Article 215 of the Treaty establishing the European Community. Article 178 of the same Treaty shall apply.
1. The Court of Justice shall have jurisdiction in proceedings instituted by any natural or legal person against a decision of
the Commission addressed to that person or which is of direct and individual concern to that person, on ground of infringement of
Article 8 or any rule adopted pursuant thereto, or misuse of powers.
2. Articles 168 a (1) and (2), 173, fifth paragraph, 174, first paragraph,
176, first and second paragraphs, 185 and 186 of the Treaty establishing the European Community, as well as the Statute of
the Court of Justice of the European Community, shall apply, mutatis mutandis.
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1. This Protocol shall be subject to adoption by the Member States in accordance with their respective constitutional requirements.
2. Member States shall notify the Secretary-General of the Council of the European Union of the completion of the procedures
required under their respective constitutional rules for adopting this Protocol.
3. This Protocol shall enter into force ninety days after the notification provided for in paragraph 2, by the State which, being
a member of the European Union on the date of the adoption by the Council of the act drawing up this Protocol, is the last to fulfil
that formality. If, however, the Convention has not entered into force on that date, this Protocol shall enter into force on the
date on which the Convention enters into force.
4. However, the application of Article 7 (2) shall be suspended if, and for so long as, the relevant institution of the European
Communities has not complied with its obligation to publish the data protection rules pursuant to Article 9 or the terms of Article
11 concerning the supervisory authority have not been complied with.
1. This Protocol shall be open to accession by any State that becomes a member of the European Union.
2. The text of this Protocol in the language of the acceding State, drawn up by the Council of the European Union, shall be authentic.
3. Instruments of accession shall be deposited with the depositary.
4. This Protocol shall enter into force with respect to any State that accedes to it ninety days after the deposit
of its instrument of accession or on the date of entry into force of this Protocol if it has not yet entered into force at the time
of expiry of the said period of ninety days.
1. Each Member State may reserve the right to establish the money laundering related to the proceeds of active and passive corruption
as a criminal offence only in serious cases of active and passive corruption. Any Member State making such a reservation shall inform
the depositary, giving details of the scope of the reservation, when giving the notification provided for in Article 16 (2). Such
a reservation shall be valid for a period of five years after the said notification. It
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may be renewed once for a further period of five years.
2. The Republic of Austria may, when giving its notification referred to in Article 16 (2), declare that it will not be bound
by Articles 3 and 4. Such a declaration shall cease to have effect five years after the date of the adoption of the act drawing up
this Protocol.
3. No other reservations shall be authorized, with the exception of those provided for in Article 12 (2), first and second indent.
1. The Secretary-General of the Council of the European Union shall act as depositary of this Protocol.
2. The depositary shall publish in the Official Journal of the European Communities information on the progress of
adoptions and accessions, declarations and reservations and any other notification concerning this Protocol.
For the Government of the United Kingdom of Great Britain and Northern
Ireland
Joint Declaration on Article 13 (2)
The Member States declare that the reference in Article 13 (2) to Article 7 of the Protocol shall apply only to cooperation between
the Commission on the one hand and the Member States on the other and is without prejudice to Member States' discretion in supplying
information in the course of criminal investigations.
Commission Declaration on Article 7
The Commission accepts the tasks entrusted to it under Article 7 of the Second Additional Protocol to the Convention on the protection
of the European Communities' financial interests.
COUNCIL ACT of 29 November 1996 drawing up, on the basis of Article K.3 of the Treaty on European Union, the Protocol on the interpretation,
by way of preliminary rulings, by the Court of Justice of the European Communities of the Convention on the protection of the European
Communities' financial interests (97/C 151/01)
THE COUNCIL OF THE EUROPEAN UNION,
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Having regard to the Treaty on European Union, and in particular Article K.3 (2) (c) thereof,
Whereas Article K.3 (2) (c) provides that conventions drawn up on the basis of Article K.3 of the Treaty on European Union may stipulate
that the Court of Justice shall have jurisdiction to interpret their provisions and to rule on any disputes regarding their application
in accordance with such arrangements as they may lay down,
HAS DECIDED on the drawing up of the Protocol the text of which is annexed, which has been signed today by the representatives of
the Governments of the Member States of the European Union,
RECOMMENDS that it be adopted by the Member States in accordance with their respective constitutional requirements.
Done at Brussels, 29 November 1996. For the Council
The President
N. OWEN
PROTOCOL drawn up on the basis of Article K.3 of the Treaty on European Union, on the interpretation, by way of preliminary rulings,
by the Court of Justice of the European Communities of the Convention on the protection of the European Communities' financial
interests
THE HIGH CONTRACTING PARTIES,
HAVE AGREED on the following provisions, which shall be annexed to the
Convention:
The Court of Justice of the European Communities shall have jurisdiction, pursuant to the conditions laid down in this Protocol, to
give preliminary rulings on the interpretation of the Convention on the protection of the European Communities' financial interests
and the Protocol to that Convention drawn up on
27 September 1996 (1), hereinafter referred to as 'the first Protocol`.
1. By a declaration made at the time of the signing of this Protocol or at any time thereafter, any Member State shall be able
to accept the jurisdiction of the
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Court of Justice of the European Communities to give preliminary rulings on the interpretation of the Convention on the protection
of the European Communities' financial interests and the first Protocol to that Convention pursuant to the conditions specified
in either paragraph 2 (a) or paragraph 2 (b).
2. A Member State making a declaration pursuant to paragraph 1 may specify that either:
(a) any court or tribunal of that State against whose decisions there is no judicial remedy under national law may request
the Court of Justice of the European Communities to give a preliminary ruling on a question raised in a case pending before it and
concerning the interpretation of the Convention on the protection of the European Communities' financial interests and the first
Protocol thereto if that court or tribunal considers that a decision on the question is necessary to enable it to give judgment,
or
(b) any court or tribunal of that State may request the Court of Justice of the European Communities to give a preliminary
ruling on a question raised in a case pending before it and concerning the interpretation of the Convention on the protection of
the European Communities' financial interests and the first Protocol thereto if that court or tribunal considers that a decision
on the question is necessary to enable it to give judgment.
1. The Protocol on the Statute of the Court of Justice of the European
Communities and the Rules of Procedure of that Court of Justice shall apply.
2. In accordance with the Statute of the Court of Justice of the European Communities, any Member State, whether or not
it has made a declaration pursuant to Article 2, shall be entitled to submit statements of case or written observations to the
Court of Justice of the European Communities in cases which arise pursuant to Article 1.
1. This Protocol shall be subject to adoption by the Member States in accordance with their respective constitutional requirements.
2. Member States shall notify the depositary of the completion of their respective constitutional requirements for adopting
this Protocol and communicate to him any declaration made pursuant to Article 2.
3. This Protocol shall enter into force 90 days after the notification, referred to in paragraph 2, by the Member State
which, being a member of the European Union on the date of adoption by the Council of the Act drawing up this Protocol, is the last
to fulfil that formality. However, it shall at the earliest enter into force at the same time as the Convention on the protection
of the European
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Communities' financial interests.
1. This Protocol shall be open to accession by any State that becomes a member of the European Union.
2. Instruments of accession shall be deposited with the depositary.
3. The text of this Protocol in the language of the acceding State, drawn up by the Council of the European Union, shall be authentic.
4. This Protocol shall enter into force with respect to any State that accedes to it 90 days after the date of deposit
of its instrument of accession, or on the date of the entry into force of this Protocol if the latter has not yet come into force
when the said period of 90 days expires.
Any State that becomes a member of the European Union and accedes to the Convention on the protection of the European Communities' financial interests in accordance with Article 12 thereof shall accept the provisions of this Protocol.
1. Amendments to this Protocol may be proposed by any Member State, being a High Contracting Party. Any proposal for an amendment
shall be sent to the depositary, who shall forward it to the Council.
2. Amendments shall be established by the Council, which shall recommend that they be adopted by the Member States
in accordance with their respective constitutional requirements.
3. Amendments thus established shall enter into force in accordance with the provisions of Article 4.
1. The Secretary-General of the Council of the European Union shall act as depositary of this Protocol.
2. The depositary shall publish in the Official Journal of the European Communities the notifications, instruments or communications
concerning this Protocol.
In witness whereof the undersigned Plenipotentiaries have signed this
Protocol.
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Done at Brussels, this twenty-ninth day of November in the year one thousand nine hundred and ninety-six, in a single original
in the Danish, Dutch, English, Finnish, French, German, Greek, Irish, Italian, Portuguese, Spanish and Swedish languages, each text
being equally authentic.
For the Government of Ireland
For the Government of the United Kingdom of Great Britain and Northern
Ireland
DECLARATION concerning the simultaneous adoption of the Convention on the protection of the European Communities' financial
interests and the Protocol on the interpretation by way of preliminary rulings, by the Court of Justice of the European Communities,
of that Convention
The representatives of the Governments of the Member States of the
European Union meeting within the Council,
At the time of the signing of the Council Act drawing up the Protocol on the interpretation, by way of preliminary rulings, by
the Court of Justice of the European Communities of the Convention on the protection of the European Communities'
financial interests,
Wishing to ensure that the said Convention is interpreted as effectively and uniformly as possible as from its entry into force,
Declare themselves willing to take appropriate steps to ensure that the national procedures for adopting the Convention
on the protection of the European Communities' financial interests and the Protocol concerning its interpretation are completed
simultaneously at the earliest opportunity.
In witness whereof the undersigned Plenipotentiaries have signed this
Declaration.
Done at Brussels on the twenty-ninth day of November in the year one thousand nine hundred and ninety-six.
For the Government of the United Kingdom of Great Britain and Northern
Ireland
Declaration made pursuant to Article 2
At the time of the signing of this Protocol, the following declared that they accepted the jurisdiction of the Court of Justice of
the European Communities in accordance with the procedures laid down in Article 2:
The French Republic, Ireland and the Portuguese Republic in accordance with the procedures laid down in Article 2 (2) (a);
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The Federal Republic of Germany, the Hellenic Republic, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Finland
and the Kingdom of Sweden, in accordance with the procedures laid down in Article 2 (2) (b).
DECLARATION
The Federal Republic of Germany, the Hellenic Republic, the Kingdom of the Netherlands and the Republic of Austria, reserve the right
to make provision in their national law to the effect that, where a question relating to the interpretation of the Convention on
the protection of the European Communities' financial interests and the first Protocol thereto is raised in a case pending before
a national court or tribunal against whose decision there is no judicial remedy under national law, that court or tribunal will be
required to refer the matter to the Court of Justice.
For the Kingdom of Denmark and the Kingdom of Spain, the declaration(s)
will be made at the time of adoption.
The objects of this Bill are to give full effect to the Convention on the Protection of the European Communities’ Financial Interests and to specify that the term “person” as used in certain Titles of the Criminal Code and the Prevention of Money Laundering Act includes the European Communities and its Institutions.
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