Directive of the European Parliament and of the Council of 17 April 2019 on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA

In September 2017, the Commission tabled a Proposal for a Directive on combating fraud and counterfeiting of non-cash means of payment. Once adopted, the Directive shall replace the Framework Decision 2001/413/JHA.

As submitted by the Commission, the proposal has three specific objectives:
1. Ensure that a clear, robust and technology neutral policy/legal framework is in place.
2. Eliminate operational obstacles that hamper investigation and prosecution.
3. Enhance prevention.

Issued on the basis of Article 83(1) TFEU, the Proposal also stems from the need to implement relevant international standards and obligations and address fraud and counterfeiting on non-cash means of payment in an effective manner. It includes provisions on the harmonisation of criminal offences (fraudulent use of payment instruments and offences preparatory to it; offences related to information systems), the penalties thereof, and the liability of legal persons. It also lays down a number of rules concerning jurisdictions and investigation, as well as prevention of crimes and assistance and support to victims.

After several discussions within the Council, the proposal was adopted by the European Parliament on 13 March 2019, and the Council on 9 April 2019. The text has been published in the Official Journal on 10 May 2019.

This Directive establishes minimum rules concerning the definition of criminal offences and sanctions in the areas of fraud and counterfeiting of non-cash means of payment. It facilitates the prevention of such offences and the provision of assistance to and support for victims.

The Directive aims to ensure that non-cash transactions carried out with any kind of payment instrument are included in the scope of the offences. It criminalises theft and misappropriation of payment credentials, as well as their further sale and distribution and it approximates the level of penalties for the crimes defined in the Directive across Member States. Moreover, it facilitates the exchange of information and cross-border cooperation and enhances reporting of fraud by financial institutions and private entities.