Vatican: New Law on Financial Transparency, Supervision and Information
October 10, 2013
The Holy See Press Office has issued a communique on the new Law XVIII of Vatican City State (8 October 2013), regarding transparency, supervision and information in the field of finance. The full text, published on October 9, 2013, is reprinted below:
1. On today’s date the Pontifical Commission for Vatican City State adopted Law XVIII, consisting of norms regarding transparency, supervision and information in financial matters, by which the regulations of Decree No. XI of the President of the Governorate, of 8 August 2013, are confirmed as law.
2. In the implementation of Pope Francis’ Motu Proprio of 8 August 2013, and maintaining continuity with the existing norms and those introduced progressively following Pope Benedict XVI’s Motu Proprio of 30 December 2010, for the prevention and countering of illegal activities in the area of monetary and financial dealings, Law No. XVIII strengthens the current internal system for the prevention and countering of money laundering and the financing of terrorism in conformity with international guidelines and, in particular, the Recommendations of the Financial Action Task Force (FATF) and relevant European Union sources.
3. In particular, Law No. XVIII consolidates the existing discipline in matters of:
- Measures to prevent and counter money laundering and the financing of terrorism;
- Vigilance and regulation of the bodies carrying out professional activities of a financial nature;
- Collaboration and exchange of information by the Financial Information Authority internally and at an international level;
- Measures against individuals who threaten peace and international security;
- Declarations of cross-border transportation of cash.
4. Law No. XVIII clarifies and consolidates the functions, powers and responsibilities of the Financial Information Authority in the exercise of its functions of supervision and regulation in the prevention and countering of money laundering and the financing of terrorism, in its function of informing in financial matters, and, as established by Pope Francis in his Motu Proprio of 8 August 2013, the function of prudential supervision.
5. The new law – in conjunction with recent legislation in matters of substantive and procedural penal law and in matters of administrative sanctions, as well as Pope Francis’ Motu Proprio of 11 July 2013 on penal jurisdiction – constitutes a further important step in the direction of transparency and supervision of activities of a financial nature and a contribution to the stability and integrity of the sector at a global level.