The European Anti-Fraud Office (OLAF) has urged Cyprus to fully utilise EU anti-fraud funding, warning that not doing so is a missed opportunity for strengthening national systems and tackling fraud affecting EU financial interests. Cyprus remains committed to its anti-fraud strategy, but has yet to apply for the first phase of the Union Anti-Fraud Programme, which offers technical assistance and grants.
EU Anti-Fraud Office Calls for Stronger Cyprus Cooperation
Acting Director-General of the European Anti-Fraud Office (OLAF), Salla Saastamoinen, stated on Wednesday that Cyprus must consider applying for support under the Union Anti-Fraud Programme (UAFP) to enhance its capacity to combat fraud, corruption, and irregularities affecting EU financial interests. Saastamoinen, during her visit to Cyprus, praised the responsiveness and constructive engagement of Cypriot authorities but noted that the country has not yet applied for the programme’s first phase, which provides technical assistance and training.
Saastamoinen described the lack of application as “a lost opportunity,” stressing that the programme is very successful and provides financial support through grants and specialised tools. She highlighted that Cyprus could reinforce its anti-fraud systems and expertise by making use of available EU funding, especially as the EU reviews its anti-fraud architecture ahead of the next multiannual financial framework.
Focus on National Systems and EU-wide Risks
During her meetings with the finance minister, the auditor-general, and officials from the anti-money laundering unit MOKAS, Saastamoinen assessed the operational work on the ground. She noted that national systems play a crucial role in preventing and detecting fraud, with EU-wide risks including procurement manipulation, conflicts of interest, inflated invoices, customs fraud, smuggling, and product falsification.
Saastamoinen emphasised that these challenges are not unique to Cyprus but said the country could strengthen its capacity through the Union Anti-Fraud Programme. She praised past joint efforts, including customs operations, dismantling of smuggling networks, and identification of irregularities in EU-funded projects, which
“demonstrate that when Cyprus and OLAF cooperate closely, we can achieve significant and tangible impact,”
Progress on National Anti-Fraud Strategy
Saastamoinen confirmed that Cyprus remains committed to completing and implementing a national anti-fraud strategy, with OLAF continuing to support this through training, operational tools, and expert coordination. She stressed that adequate funding for key systems, such as IT and data management, is essential to ensure controls are effective.
Saastamoinen also highlighted the importance of transparency and accountability, encouraging Cyprus to complete and implement its national anti-fraud strategy and make better use of the Union Anti-Fraud Programme. She noted that OLAF can support Cyprus through training, operational tools, sharing best practices, and helping coordinate with European partners and third countries.
Upcoming EU Council Presidency and Anti-Fraud Architecture
Saastamoinen’s visit comes at a crucial time, as Cyprus is set to assume the EU Council Presidency. She said the timing is particularly relevant given the ongoing review of the EU’s Anti-Fraud Architecture and its connection to the next Multiannual Financial Framework (MFF). Under the Commission’s MFF proposal, national management and control systems become the first and central line of defence against fraud and irregularities.
Saastamoinen added that having a comprehensive, coherent strategy based on a sound risk assessment will be an important audit and control requirement. From OLAF’s perspective, it is encouraging to see Cyprus advancing in this direction, laying the foundation for stronger, more effective protection of EU funds.
