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Recovery and information system for money wrongly paid in connection with the financing of the common agricultural policy

The European Union (EU) intends to intensify the fight against irregularities and promote the recovery of money wrongly paid in connection with the financing of the common agricultural policy (CAP). It is important that there should be better cooperation between Member States and the Commission in this area. This Regulation lays down rules for the systematic communication of information to the Commission by Member States and obligations for protecting the financial interests of the Community.

ACT

Commission Regulation (EC) No 1848/2006 of 14 December 2006 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field and repealing Council Regulation (EEC) No 595/91.

SUMMARY

This Regulation aims to improve the Community's response to irregular practices. It requires Member States to submit a quarterly report to the Commission listing all irregularities they have detected (and with an impact of more than EUR 10 000). Member States are required to inform the Commission of national procedures to impose administrative or criminal sanctions and – if the Commission requests them to do so – to provide details of any progress made in recovering money from beneficiaries who have committed irregularities with a detrimental effect on EAGF and EAFRD Community funding.

Quarterly report to the Commission

Within two months following the end of each quarter, Member States must report to the Commission any irregularities which have been the subject of a primary administrative or judicial finding. This report should be accompanied by information concerning the type and the amount of expenditure, the practices used to commit the irregularity, the identity of those implicated and the progress of administrative and legal proceedings. If some of this information is not available when the initial report is submitted, Member States must communicate it in subsequent quarterly reports.

Reporting to other Member States

Each Member State has to report to the Commission and the other Member States concerned any irregularities which it is feared may very quickly have repercussions outside its territory or which show that a new malpractice has been employed.

The Cocolaf

Once a year, the Commission provides the Advisory Committee for the Coordination of Fraud Prevention (Cocolaf) with a summary report of its work under this Regulation.

Key terms in the Act
  • Irregularity: defined in Article 1(2) of Council Regulation (EC, Euratom) No 2988/95 as any infringement of a provision of Community law resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the Communities either by reducing or losing revenue accruing from own resources collected directly on behalf of the Communities, or by an unjustified item of expenditure.
  • Primary administrative or judiciary finding: defined in Article 35 of Regulation (EC) No 1290/2005 as the first written assessment of a competent authority, either administrative or judicial, concluding on the basis of actual facts that an irregularity has been committed, without prejudice to the possibility that this conclusion may subsequently have to be adjusted or withdrawn as a result of developments in the course of the administrative or judicial procedure.
  • Suspected fraud: defined in Article 1a point (4) of Regulation (EC) No 1681/94 as an irregularity which has been subject of a primary administrative or judicial finding giving rise to the initiation of proceedings at national level in order to establish the presence of intentional behaviour, in particular fraud as is referred to in Article 1(1) point (a) of the Convention of 26 July 1995 on the protection of the European Communities' financial interests drawn up on the basis of Article K.3 of the Treaty on European Union.
  • Economic operator: defined in Article 1a point (2) of Commission Regulation No 1681/94 as any natural or legal person or other entity benefiting from a financing from the EAGF or the EAFRD, with the exception of Member States exercising their prerogatives as a public authority, or receiving such assistance, or having to pay an assigned revenue within the meaning of Article 34(1) points (b) and (c) of Council Regulation (EC) No 1290/2005.

REFERENCES

ActEntry into forceDeadline for transposition in the Member StatesOfficial Journal
Regulation (EC) No 1848/2006

18.12.2006

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OJ L 355, 15.12.2006

Last updated: 23.07.2006
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