Posted on: January 1st, 2011

http://news.carrentals.co.uk/vatican-sets-up-new-watchdog-to-tackle-money-laundering-34231197.html

The Vatican has had set up a financial authority to eradicate money laundering and make financial operations in the state more transparent.

In accordance with international efforts to stamp out both money laundering and funding of terrorist activities, the Pope has signed in new laws and regulations to bring the Catholic state’s banking policies to match the demands made of it.

The moves come ahead of EU deadlines but also follow widespread accusations that the Vatican has been breaching international regulations on money laundering. Back in September, prosecutors in the Italian capital formally put the current director of Vatican Bank, Mr Ettore Gotti Tedeschi, as well his deputy, under investigation after receiving tip-offs from the mainland’s Bank of Italy that possible money laundering was in operation.

The Italian justice authorities have seized 23m euros which the Vatican had previously deposited at an Italian commercial bank’s branch near Saint Peter’s Square, without properly identifying neither the depositor nor the recipient.  When pressed to comment, The Vatican said in a statement that there was a misunderstanding and there hadn’t been any wrongdoing by the bank or any of its employees.

By Pope Benedict XVI signing the documents, the Vatican was acting ahead of New Year’s eve deadline to make a compliance authority ale to oversee every financial operation – required by the European Union as well as other international organisations.

Above all, the Vatican’s ages-old secrecy over its funds will no longer be used as an excuse to avoid obligations under both international and Italian laws put in place to combat money-laundering operations.