Notification of competent authority as per Art 7 (3a) of OLAF Regulation

Suur-Ameerika 1 / 10122 Tallinn / Estonia / +372 611 3558 / [email protected]

www.rahandusministeerium.ee / Reg. code: 70000272

Director-General Mr. Ville Itälä

European Anti-Fraud Office (OLAF)

[email protected]

Notification of competent authority

as per Art 7 (3a) of OLAF

Regulation

Dear Mr Itälä,

We have agreed to name as the relevant competent authority that will give the necessary bank

account information assistance to OLAF to be Tax and Customs Board ([email protected]). All

other inquiries should be sent to AFCOS Estonia contacts.

We refer to our meeting with OLAF Unit D.1 on 20. November 2024 where we explained, in

addition to our letter (9. September 2024 No 11-4.1/2152-3), our regulations concerning

access to information as per Regulation No 883/2013 (OLAF Regulation), including the

provisions of Article 7 (3a).

While we do not oppose the direct applicability of OLAF Regulation and would not hinder

access to necessary information, we see some issues to be sorted out domestically as explained

below and have therefore started the amendment of the Taxation Act to add a new

responsibility to Tax and Customs Board, and it will take at least half a year.

The reasoning for the need to amend our regulations is following.

OLAF Regulation sets out two categories of information: 1) information available in the

centralised automated mechanisms referred to in Article 32a (3) of Directive (EU) 2015/849

of the European Parliament and of the Council and 2) where strictly necessary for the purposes

of the investigation, the record of transactions.

According to OLAF Regulation, the Member States shall provide assistance to OLAF,

including by giving access to the bank account information, under the same conditions as

applied to national competent authorities. As explained previously, there are no default rules

or no administrative authorities with rights to get such information acting under the same or

similar conditions.

As explained in our 9. September 2024 letter, the information mentioned under the first point,

is accessible through Enforcement Register which is a database that serves to function as an

information exchange channel to ensure that – to carry out tasks emanating from the law –

queries can be made for information in the possession of credit and payment institutions. So,

concerning the information referred to in Article 32a (3) of Directive (EU) 2015/849, access

Our ref. 18.12.2024 No 11-4.1/5683-1

2

to required information is provided domestically mostly through Enforcement Register. While

Money Laundering and Terrorist Financing Prevention Act stipulates an obligation of a credit

institution or a financial institution that has opened for a customer a payment account that has

an International Bank Account Number (IBAN) or let them a safe-deposit box, to ensure that

at least the particulars mentioned in subsections 1¹–1⁵ of section 81 are available via the

Enforcement Register, there are different access rights applicable to different authorities

depending on and related to their relevant duties, and are, therefore not unlimited or default.

In the case of Tax and Customs Board, the sources, and methods of gathering information,

including banking information, are related to actual tax proceedings. According to Taxation

Act, the tax authority has the right to request information from third parties, including credit

institutions (through Enforcement Register), to ascertain facts relevant to tax proceedings. The

abovementioned persons are required to submit information unless they have the right to

refuse to disclose evidence or information based on law. In addition, prior to requesting

information from a third party, the taxable person must be approached for information except

in certain cases stated by law.

As regards to records of transactions, the same general rules apply (approaching the taxable

person before requesting information from third parties), only such information is not always

accessible through Enforcement Register.

Tax and Customs Board would need to have specific authorization to obtain banking

information outside of tax proceedings for the purposes of OLAF Regulation and without first

approaching the data subject.

So, to set up a mechanism in accordance with the rule of law, for access to information

required by OLAF, but also since both categories of information contain banking secrets that

Tax and Customs Board has access to pursuant to the provisions of the Taxation Act, we need

to amend relevant regulations.

Please do not hesitate to ask for additional information if needed.

Yours sincerely,

(signed digitally)

Anu Alber

Head of the Financial Control Department.

Virve Teppart +372 58851494 Agnes Peterson +372 5885 1301

[email protected] [email protected]

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European Anti-Fraud Office (OLAF)

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