The Pontifical Commission for Vatican City has introduced a new law as a further clampdown on the financial system. The new law gives greater powers to the Financial Information Authority and the Governorate
VATICAN INSIDER STAFF
Yesterday, the Holy See Press Office introduced Law XVIII of Vatican City State (8 October 2013), regarding transparency, supervision and information in the field of finance, in accordance with the Motu Proprio issued by Pope Francis on 8 August 2013. The law reinforces the supervisory powers of the Financial Information Authority (AIF) and consolidates the “function of prudential supervision” entrusted to it.
Law No. XVIII is in continuity with the anti-money laundering laws introduced through Law 127 on 30 December 2010 and “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.”
“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.”
Crucially, 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.”
“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.” Law XVIII refers to, integrates and modifies certain sections of Law 127 introduced in December 2010 and came into force yesterday.