Archbishop Mamberti: new Vatican financial transparency law a tool in fight against money laundering/terrorism

(VIS) Archbishop Dominique Mamberti, secretary for Relations with States, in a text focusing in detail on the content of the new law on transparency, supervision and financial information, mentions first that a significant part of the law is dedicated to measures against money laundering and the financing of terrorism, and gives details on the “individuals, the activity of risk assessment, prescriptions concerning suitable checks on counterparties … and the discipline of the international transfer of funds”, strengthened when these two criminal activities are suspected.

“Special attention is dedicated to giving information on suspicious activities, which obligated subjects are required to carry out before the Financial Information Authority”, continues Archbishop Mamberti. “In the case of a valid reason to suspect activities of money laundering or financing of terrorism, the Financial Information Authority transmits a detailed report to the Promoter of Justice and may also suspend transactions and operations under suspicion for up to five working days.”

“The system of prescriptions regarding measures against money laundering and the financing of terrorism is completed by the attribution, again to the Financial Information Authority, of a power of general supervision in relation to the implementation of the measures established by law on the part of obligated subjects, as well as a structured system of administrative sanctions that can be applied by the Authority or, in the most serious cases, by the president of the Governorate, upon suggestion by the Financial Information Authority”.

“A relevant area of the discipline introduced by Law XVIII is included in the section regarding 'Prudential supervision of bodies engaged in professional activities of a financial nature', or rather, those who regularly carry out a financial activity in an organised economic form, in the name of or on behalf of third parties, for the purposes of the production or exchange of goods or services. The introduction of this function … responds to a specific recommendation from the MONEYVAL Division of the Council of Europe, and Law No XVIII establishes the discipline of this activity by conceding broad-ranging powers of regulation to the Financial Information Authority”.

With reference to measures against individuals who threaten peace and international security, the archbishop explained that the provision of goods, economic resources and financial services is automatically denied to listed individuals, and the Financial Information Authority may immediately place a preventative block on their goods and resources, informing those subjects who carry out financial activities. In addition, cautionary measures may be adopted in relation to an individual not yet included on the list in the case of valid reasons to suspect that he or she poses a threat to peace and international security and provided that the subject is added to the list within fifteen-day period”.

With regard to the provisions of the Law in relation to the cross-border transportation of cash of a value of more than 10,000 euros, entering or leaving a State, and the legislation regarding information and co-operation, the prelate underlined “the central role attributed to the Financial Information Authority which collaborates and exchanges information both with other authorities of the Holy See and Vatican City State, and with analogous authorities in other States, in conditions of reciprocity and on the basis of agreement protocols”.