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	Vatican Anti-money Laundering Law Goes into Effect; People Bringing $14k inside Must Declare Daily American April 1, 2011 http://www.dailyamerican.com/news/sns-bc-eu--vatican-bank,0,1250985.story The Vatican issued a new rule Friday requiring anyone bringing ˆ10,000 ($14,000) or more into Vatican City to declare it, the latest initiative by the Holy See to come into compliance with international finance norms. The rule was introduced the same day the Holy See's broader anti-money laundering and anti-terrorist financing regulations went into effect, including the creation of a new financial watchdog agency tasked with ensuring transparency in Vatican finances. The Vatican announced the measures Dec. 30 in a major effort to comply with European Union currency norms and shed its image as a tax haven with a reputation for secrecy and scandal. The Vatican's own bank, meanwhile, remains implicated in a money-laundering investigation that resulted in ˆ23 million ($31 million) being seized and its top two officials placed under investigation last September. The Vatican has denied wrongdoing and says the investigation of the bank, known as the Institute for Religious Works, or IOR, resulted from a misunderstanding that it expected would be cleared up. Prosecutors haven't charged the officials. The bank was created to manage assets placed in its care that are destined for the pope's religious or charitable works. But it also manages ATMs inside Vatican City and the pension system for the Vatican's thousands of employees. The bank is not open to the public and its list of accountholders is secret. But bank officials have told prosecutors there are some 40,000-45,000 among religious congregations, clergy, Vatican officials and lay people with Vatican connections. Pope Benedict XVI, who wrote an entire encyclical about the need for greater morality in finance, has said he wanted the Vatican to join other countries that have cracked down on legal loopholes that have allowed criminals to exploit the financial sector. In a statement Friday, the Vatican said the entry into effect of the new laws was an important step that underscored the pope's commitment to "the creation of a more just and honest civil coexistence." The new reporting regulation essentially brings the Vatican in line with most other countries that require visitors to declare to customs authorities at airports if they are bringing ˆ10,000 or more into the country. In the Holy See's case, the declarations are to be made to Vatican financial authorities or the gendarmes guarding the ancient gates of Vatican City. Guards are allowed to search visitors, their cars and bags if they are suspected of low-balling the amount or failing to declare it altogether. Unspecified sanctions await violators. The most significant change in the Vatican's way of doing business is the creation of the financial watchdog agency, the Financial Information Authority, or AIF, which is tasked with ensuring all Vatican financial transactions comply with the new transparency laws. The watchdog will also share information with international financial organizations, a big shift for the notoriously private Vatican financial system. In recent weeks, the Vatican has named senior Italian financial experts to the board and leadership of the AIF, including Francesco De Pasquale, an expert on financial irregularities, and Marcello Condemi, a former member of Italy's delegation to the Financial Action Task Force, the Paris-based policymaking body that helps develop anti-money laundering and anti-terror financing legislation. In a recent interview with Vatican Radio, Condemi said the Vatican's new laws formed a "solid basis" for preventing and fighting money-laundering "that can't but produce relevant effects on identifying suspect transactions."
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