News that Vatican Financial Intelligence Authority (AIF) has been
admitted to a global network of financial oversight agencies proves that
the Vatican is threading an international and multilateral path to
adhere to international standards.
It “represents a recognition of the Holy See/Vatican City State’s
systematic efforts in tracking and fighting money laundering and
financing of terrorism,” said René Bruelhart, director of the Authority
of Financial Information, in a July 3 statement.
The news of admission to the Egmont Group, an umbrella organization for
130 Financial Intelligence Units, became official just days after the
unexpected resignations of the Vatican bank's general director Paolo
Cipriani and his deputy Massimo Tulli, who stepped down on July 1.
Cipriani and Tulli’s sudden exit came on the heels of the recent arrest
of Msgr. Nunzio Scarano, an employee of the Administration of the
Patrimony of the Apostolic See. He allegedly used his account at the
Institute for Religious Works, the so-called “Vatican bank,” for money
laundering.
In a broader perspective, the recent facts signal that the reform that
began under Benedict XVI and continues under Pope Francis' watch is
gaining momentum.
In Dec. 2009, as part of a monetary agreement with the European Union,
the Vatican agreed to implement an anti-money laundering law within one
year.
Despite setbacks, like the Sep. 2010 seizure of 23 million euro being
transferred between Institute accounts with Italian banks, the line of
reform has advanced.
Then-bank president Ettore Gotti Tedeschi, together with Cipriani, was
questioned by the public prosecutor in Rome about the suspect movements.
Though their clarifications were not deemed satisfactory, the money was
eventually freed when the anti-money laundering law came into effect on
March 15 of the following year.
Then, on May 24, 2012, Gotti Tedeschi received a “no confidence” vote by
the Governing Board of the Institute for Religious Works citing nine
reasons including “failure to carry out basic duties incumbent upon the
President.”
The investigation continued and led to Cipriani and Tulli’s resignations along with the arrest of Msgr. Scarano.
In the meantime, the Vatican’s anti-money laundering law has undergone a major revision.
After its Nov. 2011 on-site visit, the committee of Council of Europe
evaluators known as MONEYVAL criticized the Vatican law, which was tied
to Italian anti-money laundering law, and asked for a revision.
The
organization evaluates the adherence of member States to international
anti-money laundering standards.
The revised law has since met international standards, but at the same
time proved that any special relationship that may have existed between
Italy and the Holy See has now come to an end.
In retrospect, the 2012 vote of “no confidence” could be considered the
first in a series of actions that mark a new era for the Vatican Bank.
The comprehensive reform that was first requested by MONEYVAL in a July
2012 report is giving it structure.
Meanwhile, inclusion in the Egmont Group will go down as another
milestone in combating money laundering and terrorism financing for the
Vatican.
According to the July 4 press bulletin from the Holy See, it
“marks a further step in its contribution to this global effort.”