Protection of the financial interests of the Union
Article 58
1. Member States shall, within the framework of the CAP, adopt all legislative, regulatory and administrative provisions and take any other measures necessary to ensure effective protection of the financial interests of the Union, in particular to: (a) check the legality and regularity of operations financed by the Funds; (b) ensure effective prevention against fraud, especially in areas with a higher level of risk, and which will act as a deterrent, having regard to the costs and benefits as well as the proportionality of the measures; (c) prevent, detect and correct irregularities and fraud; (d) impose penalties which are effective, dissuasive and proportionate in accordance with Union law, or failing this, national law, and bring legal proceedings to that effect, as necessary; (e) recover undue payments plus interest, and bring legal proceedings to that effect as necessary. 2. Member States shall set up efficient management and control systems in order to ensure compliance with the legislation governing Union support schemes aimed at minimising the risk of financial damage to the Union. 3. Member States shall inform the Commission of the provisions adopted and measures taken under paragraphs 1 and 2. Any conditions established by Member States to supplement the conditions laid down by Union rules for receiving support financed by the EAGF or the EAFRD shall be verifiable. 4. The Commission may adopt implementing acts, laying down rules necessary for the uniform application of this Article relating to the following: (a) the procedures, deadlines, exchange of information in relation to the obligations as set out in paragraphs 1 and 2; (b) the notification and communication to be made by the Member States to the Commission in relation to the obligation set out in paragraph 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 116(3).