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1. Achievements in Combating Fraud

The French Public Finance Directorate (DGFiP) achieved significant results in combating fraud during the period 2020-2022 through reforms and strengthened inspections, despite the impact of the COVID-19 pandemic. The DGFiP completed 80% of its anti-fraud projects, with 72% of indicators achieved or showing significant progress.

Tax Audits: In 2022, tax audits uncovered €14.6 billion in tax evasion, with €8.8 billion from on-site audits and €5.8 billion from document audits. Data mining played a crucial role, with 52% of audits relying on data analysis, resulting in the recovery of €2 billion in taxes and penalties.
Criminal Prosecutions: In 2022, the DGFiP initiated 1,770 criminal proceedings in the tax sector, including 48 cases involving criminal charges for tax fraud.
Data Mining: Data mining was instrumental in combating fraud, with 52% of audits dependent on data analysis.

2. Achievements in Combating Customs Fraud

French customs achieved historic results in combating counterfeit goods and tobacco smuggling:

Drug Smuggling: In 2022, French customs seized 104.08 tons of drugs, valued at over €1.041 billion, including 17.8 tons of cocaine.
Tobacco Smuggling: In 2022, 649.1 tons of tobacco and cigarettes were seized, a 59.2% increase from 2021.
Counterfeit Goods: In 2022, 11.53 million counterfeit items were seized, a 27% increase from 2021.

3. Tracfin's Role in Combating Fraud

In 2022, Tracfin strengthened its efforts to combat tax, customs, and social fraud, accounting for 30% of its activities. Tracfin submitted 884 reports involving €1.5 billion in financial risks, with 458 reports to tax authorities and 129 to judicial authorities.

Suspicious Activity Reports: Tracfin processed suspicious activity reports, which increased from fewer than 70,000 in 2017 to 167,000 in 2022, a 138.6% increase.
Detection of Emerging Fraud: Tracfin detected fraud related to crypto-assets, particularly undeclared or underreported profits from non-fungible tokens (NFTs).

4. Achievements in Combating Social Security Fraud

Since 2017, significant progress has been made in combating social security fraud:

URSSAF Network: In 2022, the URSSAF network recovered €7.88 billion, double the amount in 2013 (€3.2 billion).
CAF Network: In 2022, the CAF network detected 49,000 cases of fraud, totaling €3.51 billion in losses, a 21% increase from 2017.
CNAV Network: In 2022, the CNAV network prevented €1.55 billion in improper payments, a €200 million increase from 2021.

5. Challenges and Improvements in Combating Fraud

Challenges: Despite significant achievements, the DGFiP still faces challenges in technical debt and information transparency. The resolution of technical debt has been slow, and insufficient information sharing has affected the efficiency of anti-fraud efforts.
Improvement Recommendations:
1. Strengthen data mining and analysis to improve the precision of audits.
2. Optimize criminal prosecution processes to enhance the fight against fraud.
3. Enhance cooperation with other agencies to share anti-fraud experiences and data.
4. Prioritize the resolution of technical debt and report progress to relevant departments every six months.

Conclusion

In 2022, France achieved significant success in combating tax, customs, and social fraud, but it still needs to strengthen technical means and inter-departmental cooperation to address evolving fraud methods. In the future, France will continue to enhance its anti-fraud capabilities through data analysis, strengthened inspections, and international cooperation.