Directive (EU) 2019/713 on combating fraud and counterfeiting of non-cash means of payment

Summary:

Directive of the European Parliament and of the Council of 17 April 2019 replacing Council Framework Decision 2001/413/JHA.

Background and further information:

The current EU legislation that provides common minimum rules to criminalise non-cash payment fraud is Council Framework Decision 2001/413/JHA on combating fraud and counterfeiting of non-cash means of payment (CFD). The European Agenda on Security acknowledges that the CFD no longer reflects today’s realities and insufficiently addresses new challenges and technological developments such as virtual currencies and mobile payments.

It is important to deal effectively with non-cash payment fraud as it represents a threat to security. Non-cash payment fraud provides income for organised crime and therefore enables other criminal activities such as terrorism, drug trafficking and trafficking in human beings. In addition, non-cash payment fraud hinders the development of the digital single market.

An evaluation of the current EU legislative framework identified three problems that are driving the current situation concerning non-cash payment fraud in the EU: (1) Some crimes cannot be effectively investigated and prosecuted under the current legal framework; (2) Some crimes cannot be effectively investigated and prosecuted due to operational obstacles; and (3) Criminals take advantage of gaps in prevention to commit fraud.

The proposed Directive has three specific objectives that address the problems identified: (1) Ensure that a clear, robust and technology neutral policy/legal framework is in place; (2) Eliminate operational obstacles that hamper investigation and prosecution; and (3) Enhance prevention.

• Primary Source

Commentary and Analysis

EPRS: Briefing, December 2017: Combating fraud and counterfeiting of non-cash means of payment [Initial Appraisal of a European Commission Impact Assessment] http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/611031/EPRS_BRI(2017)611031_EN.pdf

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Official

EUR-Lex: COM(2017)489: Proposal for a Directive on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2017:489:FIN

EUR-Lex: SWD(2017)298: Impact assessment accompanying COM(2017)489 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:298:FIN

EUR-Lex: SWD(2017)299: Executive summary of the impact assessment accompanying COM(2017)489 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:299:FIN

EPRS: Briefing, November 2017: Council Framework Decision 2001/413 on combating fraud and counterfeiting of non-cash means of payment [Implementation Appraisal] http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/611013/EPRS_BRI(2017)611013_EN.pdf

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