Pope Francis beefs up supervision of Vatican bank

Thu Aug 8, 2013 11:07am EDT
 
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By Catherine Hornby

VATICAN CITY (Reuters) - Pope Francis on Thursday strengthened monitoring of the Vatican bank to prevent money laundering or the financing of terrorism as part of his campaign to clean it up after decades of scandal.

Issuing a "Motu Proprio" - a decree at his own initiative, Francis said the Vatican's internal watchdog, the Financial Information Authority (FIA), would have increased powers of supervision over the bank and other Holy See departments involved in financial activities.

The move will lead to closer monitoring of the Institute for Works of Religion (IOR) - the formal name of the Vatican bank - and responds to a recommendation from the European anti-money laundering committee Moneyval last year.

The Vatican is trying to meet international standards on fighting crimes such as money laundering, funding of terrorism and proliferation of weapons of mass destruction. Moneyval said in a July 2012 report that the Vatican still had some way to go.

It said FIA's powers should include reviewing policies, procedures, accounts and records and that it should have the right to enter Vatican premises and demand access to information.

Francis's decree broadens the application of relevant Vatican laws to the departments of the Roman Curia, or central administration, and to other institutions dependent on the Holy See as well as non-profit organizations based in Vatican City.

It also establishes a "Financial Security Committee" to coordinate efforts to prevent laundering, terrorism financing and the proliferation of weapons, the Vatican said.

Pope Francis has made cleaning up the Vatican administration one of his central goals since his election in March. He has brought in international experts to advise him on economic affairs, improve transparency and enforce accounting principles.   Continued...

 
Pope Francis gestures as he leads the Angelus prayer from the window of the Apostolic palace in Saint Peter's Square at the Vatican, August 4, 2013. REUTERS/Stefano Rellandini