Vatican financial watchdog loses autonomy

VATICAN CITY — The Vatican’s financial intelligence and anti-money-laundering authority has been overhauled under a new 12-article statute that eliminates its president and board and places it under a new structure led by a director and deputy director appointed by the pope.

The Authority for Financial Information and Supervision, known by its Italian acronym ASIF, is now effectively structured as an office, with its leadership appointed directly by the pope for five-year terms and operating within the Vatican’s economic governance system.

The change marks a significant shift for an authority that, under its earlier identity as the Financial Information Authority and later as ASIF, had been designed with an international profile and a measure of autonomy in the Vatican’s efforts to combat money laundering and terrorist financing.

That autonomy had already come under strain in recent years, especially after the Vatican trial over the management of funds by the Secretariat of State. Searches of the authority’s offices by Vatican gendarmes created complications for international financial cooperation and raised questions about the authority’s independence.

The new statute confirms that ASIF has “exclusive competence” in three areas: supervision and regulation for the prevention and countering of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction; financial intelligence, including the receipt and analysis of suspicious activity reports and domestic and international cooperation; and prudential supervision and regulation of entities that professionally conduct financial activities.

The authority also “provides support to the other public authorities of the Holy See and Vatican City State” in preventing and countering money laundering, terrorist financing, proliferation financing, and related predicate offenses.

The statute says ASIF may also “serve as an alternative dispute resolution system” for disputes between users and entities that professionally carry out financial activities in connection with financial operations and services.

Under the new rules, ASIF’s annual report must be submitted to the Council for the Economy, with a copy sent to the president of the Financial Security Committee. The authority will also submit its projected and final budgets directly to the Council for the Economy for approval, “in accordance with the accounting rules in force.”

The statute says the authority will receive its annual operating funds from the Administration of the Patrimony of the Apostolic See, the Governorate of Vatican City State, and entities that professionally conduct financial activities. The Council for the Economy will determine the contribution required from each.

The authority’s structure now includes three offices: an office for supervision and regulation in the area of preventing and countering money laundering, terrorist financing, and proliferation financing; an office for financial intelligence; and an office for prudential supervision and regulation.

The new statute also establishes a legal affairs officer, who, among other duties, is responsible for fundamental rights in the context of financial intelligence activity.

With the reform, ASIF is effectively treated as equivalent to a dicastery of the Roman Curia. The statute also provides for consultors, who were not part of the authority’s previous structure and will be appointed by the pope for five-year terms.

This story was first published by ACI Stampa, the Italian-language sister service of EWTN News. It has been translated and adapted by EWTN News English.