The EPPO announced on 14 January 2025 the arrest of four suspects in connection with a EUR 7.2 million fraud involving imported bicycles. The investigation uncovered 380 falsified import declarations, which understated the value of the bicycles and misrepresented their country of origin, thereby enabling the suspects to evade significant import and anti-dumping duties. In connection with this investigation, the Dutch Fiscal Information and Investigation Service (the FIOD) seized assets valued at approximately EUR 9 million.

In its second announcement, dated 26 February 2025, the EPPO disclosed the initiation of an investigation into a suspected large-scale customs fraud and money laundering scheme in the Netherlands. The scheme concerns the importation of e-bikes from China, resulting in an estimated loss for the EU budget of at least EUR 1.8 million due to unpaid anti-dumping duties and anti-subsidy measures.

These three investigations underscore the EPPO’s increased focus on the importation of (e-)bikes, specifically in relation to the Netherlands. With the adoption of new legislation aimed at more effectively combating (undermining) criminal activity, the detection and prosecution of financial-economic fraud in the Netherlands may be significantly enhanced. In this blog, we will discuss the role of the EPPO and the implications of the newly proposed legislation.

The EPPO

The EPPO was established pursuant to the EPPO Regulation. The purpose of the EPPO Regulation is to enhance the fight against criminal offenses that harm the financial interests of the EU. The establishment of the EPPO was deemed necessary because this objective could not be adequately achieved by the EU Member States, due to the disparate approaches to prosecution of such criminal offenses at the national level. Consequently, the objective of this regulation can be more effectively realized at the EU level, as the EPPO has been vested with the authority to prosecute these criminal offenses.

Since June 2021, the EPPO has been operating as the independent prosecutor’s office of the EU, focusing on crimes against the EU’s financial interests, including complex cross-border financial criminality often linked to organized crime. Operating under 24 different legal regimes in Europe, the EPPO has competence to handle cases involving fraud with EU funds exceeding EUR 10,000, and cross-border VAT fraud involving damage above EUR 10 million. Any individual or legal entity, whether EU citizens or non-EU citizens, can report potential crimes to the EPPO if there are reasonable suspicions of harm to the EU’s financial interest. EU institutions and national authorities are also obliged to promptly report such suspicions. Upon receiving all relevant information, the EPPO decides whether to exercise its right of evocation. When the EPPO exercises this right, the competent authorities of the Member States transfer the case to the EPPO and refrain from further investigative actions regarding the same offenses, allowing the EPPO to direct the investigation and prosecution at an EU level.

The investigation and prosecution are conducted by a European Delegated Prosecutor from the relevant Member State. European Delegated Prosecutors, integrated within national systems and operating under national laws, function independently under the supervision of the EPPO.

The aforementioned investigations align with the recent development of the EPPO intensifying its efforts to combat EU fraud. In 2024, over 1,500 new investigations were initiated, representing an estimated EUR 13.07 billion in damages. This increase is largely driven by a strengthened collaboration between the EPPO and national authorities.

New legislative measures

The EPPO’s investigations in the Netherlands coincide with the newly adopted customs legislation in the Netherlands, which grants the Dutch authorities greater power to conduct thorough investigations. This new legislation will potentially allow Dutch Customs to share its data more easily with other Dutch authorities conducting criminal investigations, even when there haven’t been any criminal charges filed yet.

As it currently stands, Dutch Customs officials are bound by professional confidentiality, ensuring that sensitive information entrusted to them is used solely for monitoring compliance with customs legislation. The new act authorizes Dutch customs to share data, subject to professional confidentiality, with agencies such as the police, the Royal Netherlands Military Constabulary (Koninklijke Nederlandse Marechaussee), the Financial Intelligence Unit (the FIU) and the FIOD at an earlier stage during the monitoring phase, even in the absence of reasonable suspicion of a criminal offense. The sharing of confidential data is restricted to gaining potential insights into crimes punishable by four or more years of imprisonment, while maintaining a balance between societal significance and public interests, such as national security, public safety, and economic stability.

Conclusion

In conclusion, the EPPO plays a pivotal role as an independent authority in safeguarding the EU’s financial interest, as evidenced by a marked increase in the number of investigations it has initiated. Concurrently, the new Dutch customs legislation will potentially authorize Dutch customs to share data with investigative bodies during the monitoring phase, notwithstanding the current professional confidentiality, and without the necessity of a reasonable suspicion of a criminal offense.

Together, the EPPO and the proposed Dutch customs legislation represent a comprehensive approach to tackling cross-border financial-economic crime, safeguarding the integrity of the EU budget, and promoting fair and transparent trade practices within the EU.

If the EPPO has initiated an investigation against you or if you have any questions regarding the recent developments in the proposed Dutch legislation, our experts are readily available to provide guidance and assistance. If you wish to discuss these matters in more detail or require clarification, please feel free to contact us. The Corporate Crime & Compliance team and the Customs & International Trade team at Loyens & Loeff are ready to assist you with their combined expertise.