Vatican sets up watchdog to combat money laundering

 

 

 The Vatican has set up a new financial authority to fight money laundering and make its financial operations more transparent.

The Pope has signed into law new rules to bring the Vatican's banking regulations in line with international efforts to combat money laundering and the financing of terrorism.

The move comes ahead of an EU deadline.
It follows accusations the Vatican had been contravening international rules on money laundering.
Pope Benedict XVI signed the documents, saying the Vatican wanted to join other countries that have cracked down on legal loopholes that have allowed criminals to exploit the financial sector.
The Vatican Bank has hitherto exempted itself from international banking regulations on the grounds that it is not a real bank in the normal sense of the word, says the BBC's David Willey in Rome.
It handles accounts for the Pope, his cardinals and religious orders, and has only one branch inside the apostolic palace in Rome, our correspondent adds.