"The Holy See has come a long way in a very short period of time and many of the building blocks of anti-money laundering and combating the financing of terrorism regimes are now formally in place," the report said.
In September 2012, Swiss lawyer Rene Bruelhart was recruited by the Vatican to assist in further improving financial transparency as head of the Financial Information Authority.
Von Freyberg was appointed president of Vatican Bank on Feb. 15 as part of an ongoing effort to revamp the institute by updating its controls against money laundering and the financing of terrorism.
Last week, former Vatican employee Monsignor Nuncio Scarano was arrested alongside two other individuals for allegedly trying to move 20 million Euros – $26 million U.S. Dollars – from Switzerland into Italy illegally.
Monsignor Scarano was a senior accountant at the Administration of the Patrimony of the Apostolic See until his suspension a month ago, and had an account at the Vatican Bank, although he did not work for the organization.
A Vatican official told CNA under condition of anonymity on June 26 that the Vatican is considering whether the IOR "fulfills the mission of the Church in its current structure, or if it needs to be reformed."
Pope Francis has appointed a board of five members to report to him about the organization's "legal position" and activities, and to help "harmonize the Institute with the universal mission of the Apostolic See," the official explained.
The commission will not interfere with the work of the Financial Information Authority.
The Vatican Bank receives and administers funds for charitable activities, especially in the developing world where the financial strength of institutions is not always robust. It has 114 employees, and was founded in 1942.