POLICY
The objective of the EU’s anti-fraud policy is to protect the financial interests of the European Union by preventing, deterring, investigating and ensuring the prosecution of fraud against the EU budget. The policy is implemented by the European Anti-Fraud Office (OLAF) which is part of the Commission but conducts investigations in full independence.
As a service of the Commission, OLAF administers the programmes described below in support of the Union’s anti-fraud policies. A specific strand of anti-fraud activity is the defence of the Euro against counterfeiting of notes and coins, which is central to the functioning of the single currency.

INSTRUMENTS
Three programmes are designed to coordinate the action of the Member States in combating fraud against the budget, in line with the duty of close and regular cooperation in Article 325 of the TFEU.
•The Hercule II programme promotes anti-fraud activity through enhancing transnational and multidisciplinary cooperation, training, specialist legal studies, the provision of other specialist anti-fraud services to Member State authorities with responsibilities in this area (police and customs agencies, public prosecutors, etc.), the building of professionals networks including acceding and candidate countries and the funding of technical equipment for the Member States. The Hercule programme has a particular role in supporting the fight against cigarette smuggling.
•The Anti-Fraud Information System (AFIS) provides a secure infrastructure for the exchange of fraud-related information among Member States and between Member States and the Commission. This infrastructure also enables joint customs operations involving Member States and third countries which coordinate the resources of different services against high-risk targets of common concern.
•The Pericles programme dedicated to the protection of the Euro against counterfeiting provides for staff exchanges, assistance and training programmes. The fight against Euro counterfeiting has been successful as a result of a coherent set of measures with an emphasis on close co-operation between all actors involved at national and European level, as well as training and awareness-raising.
In addition to the specific spending programme for anti-fraud, greater coherence in anti-fraud provisions across the whole range of spending programmes will help ensuring that the Union’s commitment to fight against fraud is implemented effectively. Anti-fraud provisions will therefore be included in each legal basis for the new generation of programmes 2014-2020.

IMPLEMENTATION
Evaluations of the previous Hercule programmes have shown significant impact in terms of improvements in the level of technical equipment employed by Member States, facilitation of cross-border operations, and quality of evidence. Contacts between specialist law enforcement officers have been reinforced. Legal studies focussed on specific issues relating to cross-border anti-fraud operations have strengthened the basis for cooperation.
Use of AFIS in Member States has increased substantially following the introduction of new technology in 2010. Further improvements are planned, in particular facilitating risk analysis. Capacity to conduct joint customs operations will be increased.
The Pericles programme has contributed to the relatively low level of counterfeiting of Euro notes and coins and successful actions stopping counterfeits even before they enter into circulation. With about 110 actions and almost 6,000 officials trained, Pericles is an important part of the set of measures protecting the Euro against counterfeiting
These programmes are implemented through grants and public procurement.
The proposal for all three programmes is to improve the present approach in the light of experience, consistent with the Commission’s Anti-Fraud Strategy, while maintaining appropriate levels of spending.

PROPOSED BUDGET ALLOCATION FOR 2014-2020
All figures in constant 2011 prices
Total proposed budget 2014-2020
for HERCULE, PERICLES and AFIS €150 million