Lithuania proposes new agency to combat budget fraud and financial crime

Lithuania’s Ministry of the Interior has proposed establishing a new specialised agency to tackle financial crimes targeting the state and EU budgets, including VAT fraud, excise duty evasion, and customs violations, LRT.lt reports.

The new Budget Crime Investigation Service would consolidate three existing bodies: the Financial Crime Investigation Service (FNTT), the Criminal Police’s Economic Crime Investigation Board, and the Customs Criminal Service. Officials argue the move would eliminate overlapping functions and improve coordination in combating increasingly sophisticated financial crime schemes.

Speaking at a press conference on Friday, Interior Minister Vladislavas Kondratovičius highlighted the scale of the challenge, noting that tax evasion, VAT fraud, and intellectual property theft are growing rapidly. “We face a major challenge as crimes linked to VAT fraud, unpaid excise and customs duties, and IP theft are expanding at an alarming rate,” he said.

Rolandas Kiškis, director of the FNTT, warned that tax fraud poses one of the biggest risks to Lithuania’s and the EU’s budgets, with current agencies often duplicating efforts. “All institutional leaders unanimously agree that, compared to Europe, Lithuania has too many criminal intelligence bodies,” he stated.

According to ministry data, undeclared and unpaid taxes remain substantial: €67.8 million in wholesale and retail trade, €30 million in agriculture, forestry, and fisheries, and €8 million in construction. Recent years have also seen a rise in complex fraud schemes, such as “missing trader” VAT scams, which exploit digital platforms, regulatory gaps, and cross-border corporate networks to conceal illicit activity.

The proposed agency would prioritise high-risk sectors, including trade, services, construction, transport, and manufacturing.