Vatican City, Jan 3, 2011 / 12:01 pm
Pope Benedict XVI has created a new oversight agency and approved tough new measures aimed at ensuring that the Vatican’s bank and other institutions cannot be exploited by those seeking to launder money or finance terrorist activity.
The measures announced on Dec. 30 establish harsh penalties, including jail time and fines, for Holy See employees and others having financial dealings with the Vatican if they are found engaging in financial misdeeds such as unlawful transactions, fraud or counterfeiting. The measures also outline penalties for activities such as illegal arms distribution, drug dealing, and even environmental pollution.
The newly created Financial Information Authority will police the financial and commercial dealings of all Vatican agencies, including the Vatican Bank.
The authority’s president and the governing council will be appointed by the Pope to serve a five year term and will make an annual report to the Vatican’s Secretary of State. Criminal investigations and any penalties would be carried out by Vatican City State officials in cooperation with Italian authorities.