The European Anti-Fraud Office (OLAF), the Romanian National Anticorruption Directorate (DNA) and the Italian Guardia di Finanza searched in early October the homes and offices of several individuals in Romania, in a joint operation that targets a suspected cross-border VAT fraud spread over several EU Member States.

The amount of evaded VAT is estimated at around EUR 30 million, according to an OLAF press release. Law enforcement officials questioned eight people suspected of being part of this transnational organised criminal group.

“It is alleged that a complex carousel fraud scheme was set up to evade VAT duties on the sale of high-value electronic devices. Fraudsters would avoid paying VAT to Italian authorities using shell companies throughout Europe and foreign bank accounts to hide their identity,” OLAF said.

A European Investigative Order was addressed by the Italian Prosecutor to the Romanian judicial authorities. The Romanian magistrates allowed Italian Guardia di Finanza officers to conduct joint searches in Romania, together with the DNA. OLAF supported the Italian Prosecutor by liaising with the Romanian authorities and alerting them to the fact that the fraudsters were using Romanian frontmen and companies, according to the European Anti-Fraud Office.

Romania, first for EU fund fraud investigations in 2017

Irina Marica, irina.marica@romania-insider.com