Vatican Financial Regulator Signs Information-sharing Deal with U.S.

By Liam Moloney
Wall Street Journal
June 30, 2014

http://online.wsj.com/articles/vatican-financial-regulator-signs-information-sharing-deal-with-u-s-1404142700

The Holy See's financial supervisor and regulator said it signed an information-sharing agreement with the U.S. regulator overseeing national banks, as the Vatican continues efforts to boost transparency and international cooperation.

The Financial Information Authority, or AIF, said the accord with the U.S. Office of the Comptroller of the Currency, or OCC, represents a significant strengthening of cooperation between the Holy See and the U.S.

"This is a further step in the Holy See's efforts toward perfecting a system of financial regulation," said Rene Brulhart, the director of the AIF, said in a statement.

"The Holy See is part of a global family of well-regulated jurisdictions and the signing of this agreement reflects that very clearly," added Mr. Brulhart, a Swiss national, who has been in charge of the AIF since November 2012.

The AIF, which was set up by Pope Benedict XVI in 2010 and which saw its powers enhanced by his successor Pope Francis last year, is part of the Vatican's efforts to comply with international standards dealing with financial crimes.

The Vatican is keen, especially under Pope Francis, to turn a page on decades of scandals involving its financial institutions, especially the Vatican bank, formally called the Institute for the Works of Religion, or IOR.

In May, the AIF presented its 2013 annual report, its second ever published, and noted how transparency and prevention of money laundering had improved considerable at the Vatican's financial institutions, but that more progress was needed.

The AIF has signed memorandums of understanding on increasing cooperation to fight money-laundering with more than a dozen countries, including Italy, Germany and the U.K.

The AIF said on Monday it expected further bilateral agreements with financial supervisors and regulators of other countries in "due course," as it continues to strengthen its own regulatory infrastructure.

AIF's efforts are bearing fruit. The Moneyval committee, a European anti-money-laundering watchdog, last December praised the Vatican for its improvements in cleaning up its financial dealings, while asking for a tightening of the regulatory oversight of IOR.

In the summer of last year, the Holy See became a member of the Egmont Group, a global organization that shares financial information to combat money laundering and financing of terrorism.