(1)

The purpose of this Regulation is to supplement the provision set out in Article 50(3) of Regulation (EU) 2021/2116 on the obligations of Member States to make available to the Commission information about irregularities. To enable the Commission to perform its responsibilities concerning the protection of the Union’s financial interests, in particular to perform risk analysis, develop systems for more effective risk identification and produce reports for the purpose of such tasks, it should also be established which data are to be provided.

(2)

The financial interests of the Union should be protected in the same way irrespective of the funds concerned and the objectives for which such funds are established. To that end, Article 52(1) of Regulation (EU) 2021/2116 empowers the Commission to adopt rules to supplement the Member States’ obligation to report irregularities relating to the financing of the common agricultural policy. Such rules should be equivalent to the detailed rules on the reporting of irregularities set out in Annex XII to Regulation (EU) 2021/1060 of the European Parliament and of the Council (2), and in line with the rules set out in Commission Delegated Regulation (EU) 2024/204 (3). To enable consistent application of the reporting requirements across Member States, it is necessary to define the term of ‘suspected fraud’, taking into account the definition of fraud and other criminal offences set out in Article 3(2), points (a) and (b), and Article 4(1), (2) and (3) of Directive (EU) 2017/1371 of the European Parliament and of the Council (4), and, for the Member States not bound by that Directive, in Article 1(1), point (a), of the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities’ financial interests (5).

(3)

Similarly, the expression ‘primary administrative or judicial finding’ should be defined to ensure effectiveness and consistency in the application of the reporting obligations.

(4)

It is necessary to clarify that the expression ‘economic operator’ for the purposes of applying the notion of ‘irregularity’ within the meaning of Article 1(2) of Council Regulation (EC, Euratom) No 2988/95 (6) and of the other cases of non-compliance with the conditions set out by Member States in the common agriculture policy strategic plans in the context of Article 50(3) of Regulation (EU) 2021/2116, should mean any natural or legal person, or other entity taking part in the implementation of assistance from the funds, with the exception of a Member State authority exercising its prerogatives as a public authority, as provided for in Article 2, point (30), of Regulation (EU) 2021/1060, or paying assigned revenue within the meaning of Article 45 of Regulation (EU) 2021/2116.

(5)

Regulation (EU) 2021/1060 specifies the reporting threshold below which irregularities do not need to be reported to the Commission and cases for which there is no need for reporting. To strike a balance between the administrative burden on Member States and the common interest in the provision of accurate data for analysis in the Union’s fight against fraud, it is appropriate to align the reporting thresholds and derogations for the reporting of irregularities under this Delegated Regulation with those under Regulation (EU) 2021/1060.

(6)

To ensure consistency of reporting it is necessary to set criteria for determining when irregularities are to be initially reported and the data to be provided in such initial reports.

(7)

To ensure the data provided to the Commission is accurate, follow-up reporting is necessary. Member States should, therefore, provide the Commission with up-to-date- information on any significant progress in the administrative and legal procedures or proceedings related to each initial report.

(8)

Where it is necessary for the purposes of this Regulation to process personal data, this should be carried out in accordance with Union law on the protection of personal data. In light of Regulation (EU) 2016/679 of the European Parliament and of the Council (7) and Regulation (EU) 2018/1725 of the European Parliament and of the Council (8), the Commission and the Member States should, in relation to the information provided pursuant to this Regulation, prevent any unauthorised disclosure of, or access to, personal data. In addition, this Regulation should specify the purposes for which the Commission and the Member States may process that data. Any further use thereof is without prejudice to Article 6(4) of Regulation (EU) 2016/679.

(9)

The obligations of Member States to report irregularities to the Commission via the Irregularity Management System under Regulation (EU) 2021/2116 should be applied without prejudice to their obligations pursuant to Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (9), and Council Regulation (EU) 2017/1939 (10).

(10)

The European Data Protection Supervisor was consulted on this Regulation in accordance with Article 42(1) of Regulation (EU) 2018/1725.

(11)

Commission Delegated Regulation (EU) 2015/1971 (11), laying down rules applicable in the programming period 2014-2020, should be repealed. For reasons of legal certainty, Commission Delegated Regulation (EU) 2015/1971 should continue to apply for the reporting of irregularities in respect of assistance granted under Regulation (EU) No 1306/2013 of the European Parliament and of the Council (12).

(12)

As payments have already been made for the funds concerned and irregularities could occur, this Regulation should apply as soon as possible. It should therefore enter into force on the day following that of its publication in the Official Journal of the European Union,

(a)

‘suspected fraud’ means an irregularity that gives rise to the initiation of administrative or judicial proceedings at national level in order to establish the presence of intentional behaviour, in particular fraud or other criminal offences, as referred to, respectively, in Article 3(2), points (a) and (b), and Article 4(1), (2) and (3) of Directive (EU) 2017/1371 and, for the Member States not bound by that Directive, Article 1(1), point (a), of the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities’ financial interests;

(b)

‘primary administrative or judicial finding’ means a first written assessment by a competent authority, either administrative or judicial, which has concluded on the basis of specific facts that an irregularity has been committed, regardless of the possibility that this conclusion may subsequently have to be revised or withdrawn as a result of developments in the course of the administrative or judicial procedure.