Published: March. 31, 2011 at 11:25 AM

http://www.upi.com/Top_News/World-News/2011/03/31/Vatican-money-laundering-law-to-hit-books/UPI-12301301585157/

VATICAN CITY, March 31 (UPI) -- The Vatican's new anti-money laundering law strictly barring the financing of terrorist activity and the counterfeiting of currency is about to take effect.

Pope Benedict XVI issued the law Dec. 30, saying it would improve the credibility of the Vatican's financial institutions, the Italian news agency ANSA reported Wednesday.

The law goes into effect Friday.

"It is a great step forward, and in some ways, it is more advanced than the Italian (law)," said Raineiri Razzante, head of the Italian Anti-Money Laundering Authorities Association. "And it is very detailed and strict in its provisions (against) financing terrorism. There are, however, some aspects to be studied."

Catholic organizations worldwide will be subject to the new rules. Money laundering carries a prison term of up to 12 years; crimes linked to terrorism are punishable by prison sentences up to 15 years.

"This new law is very important," said the Rev. Federico Lombardi, a Vatican spokesman. "Its publication is an event of great significance in terms of rules, but it also has a wide-ranging moral and pastoral significance."

"In the future, mistakes which easily become cause for 'scandals' will be avoided," Lombardi said. "In short, the church will be more credible in the eyes of the international community and its members."