Comprehensive support: From OLAF investigations and dawn raids to enforcement

The European Union's losses due to fraud are estimated at around €13.15 billion in total in 2024. VAT fraud accounts for half of that figure. Fraud has an impact not only on revenue but often also on safety and the environment.

The European Anti-Fraud Office (OLAF) plays a pivotal role in safeguarding EU financial interests. The investigation process is detailed and methodical, beginning with an assessment of OLAF’s competence in each case, followed by evidence gathering and collaboration with appropriate bodies.

Should a business, an individual member of European Parliament (MEP) or other EU administrator come under OLAF's investigation for potential fraud, it is advisable to obtain independent legal advice as early as possible in the OLAF investigation process to ensure that appropriate procedures are followed and rights are protected. Often there is a short time frame for a response but a significant volume of, sometimes historic, data to consider before doing so.

Ogier can navigate clients through the intricacies of OLAF procedures, providing precise support for investigations, dawn raids and enforcement.

The guide gives an overview of OLAF, its process of investigation, what business will need advice on and some practical examples.

What is OLAF?

OLAF detects and investigates cases of fraud, corruption and other offences against the EU budget, such as: 

• all EU expenditure, including: structural funds, agricultural policy and rural development funds, direct expenditure and external aid

• some areas of EU revenue, mainly customs duties

• sanctions circumvention

• suspicions of serious misconduct by EU staff and members of the EU institutions

OLAF operates independently in accordance with EU laws and collaborates with various EU bodies and national authorities., Once it has completed an investigation it may make a recommendation for either a civil recovery of funds, criminal prosecutions, administrative action of disciplinary proceedings against companies and individuals. In these cases, either European Public Prosecution Office (EPPO) or local prosecutors will be engaged, depending on the jurisdiction. In Ireland local prosecutors have jurisdiction for this enforcement and in Luxembourg EPPO would lead the recovery of funds and prosecution, as appropriate.

EPPO has the power to investigate, prosecute and bring to judgment crimes against the EU budget, such as fraud, corruption or serious cross-border VAT fraud. There are currently 24 EU countries participating with the EPPO, though Ireland is not one of them and OLAF's findings may be reported to local Irish prosecutors. In 2024, EPPO had more than 2,400 actions underway.

OLAF's process of investigation 

For private undertakings, the first steps of an OLAF investigation can include unannounced raids and / or information requests. 

OLAF may receive cases from EPPO and vice versa, or indeed start investigations following notifications from and in collaboration with third country regulatory bodies,

Examples of OLAF investigations and prosecutions

Working in co-ordination with EPPO, OLAF uncovered a €4 million suspected fraud relating to the fraudulent export of 17,000 e-bikes from Turkey to Italy. Similarly, OLAF has acted in respect of the manufacture of illicit or prohibited goods by EU companies for export to third countries.

OLAF's cases range from allegations into breaches and fraud in R&D funding arrangements to the misuse or misappropriation of funding or regional development projects by companies and individuals in EU jurisdictions.

OLAF is involved in the enforcement of EU sanctions. This can be through either investigating potential breaches or by cooperating with partners in the EU and beyond to share knowledge and create a collaborative approach to enforcement of sanctions. OLAF monitors trade flows, performs analytical work to detect possible fraudulent circumvention of import / export sanctions, identifies suspicious operators and maps routes possibly used to try to evade trade restrictions.

How Ogier can help

With a team of experienced regulatory and investigations legal experts, Ogier offers specialised legal services to clients facing investigations, dawn raids and information requests from OLAF. Our regulatory lawyers provide expert guidance through the complexities of OLAF procedures, ensuring your rights are protected and provides strategic advice on compliance and resolution strategies, thereby minimising potential legal and financial implications. Through our experience we have built up channels of communication with OLAF. Furthermore, our teams in Ireland and Luxembourg provide on the ground support in respect of any follow on legal action, raids and prosecutions.

Key contacts in our regulatory and investigations team are listed below for questions in relation to this update or other related matters.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice