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| How Vatican Found Religion on Global Financial Standards By Michael Babad Globe and Mail April 1, 2011 http://www.theglobeandmail.com/report-on-business/top-business-stories/how-vatican-found-religion-on-global-financial-standards/article1966971/ Vatican adopts new financial laws The Vatican has unveiled new laws to meet global standards on financial transparency. This comes amid a probe into movement of money by the Vatican Bank, as it's most widely known. Italian authorities froze more than ˆ20-million in funds last fall in what the bank says was a simple transfer of money among its own accounts, and no wrongdoing by anyone. The new law, according to Reuters, will force the bank and other Vatican branches to meet global standards, set by the Financial Action Task Force, to fight money laundering and financing for terrorists. The Vatican has also set up a Financial Information Authority similar to agencies in other countries, the news agency said. “This is an event of great legal importance which has wide moral and pastoral significance,” according to a Vatican statement reported by Reuters. The Vatican's new agency will probe suspected violations, and its tribunals will be judge, though any time in jail would be spent in Italian prisons. As well, Reuters reported, individuals coming into or exiting the Vatican with more than ˆ100-million will have to declare the cash. The changes were ordered last year by Pope Benedict XVI. Before now, The Wall Street Journal notes, Vatican finances were not subject to the same regulations as global banks. The question now is how the regulations will be enforced, given that the Vatican doesn't have a legal system as do other countries, the newspaper pointed out. "The adequacy of these laws has not yet been assessed," Rick McDonell, executive secretary of the FATF, told the Journal. "The challenge will be the effective implementation and enforcement of the laws." |
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