Vatican Secretariat of State issues communiqué on new financial norms
Communiqué of the Secretariat of State regarding the new legislation for the prevention
and countering of illegal activities in the financial and monetary sectors
1.
Today, in implementation of the Monetary Convention of 17 December 2009 (2010/C 28/05) between
Vatican City State and the European Union, four new Laws were adopted: - the “Law
concerning the prevention and countering of the laundering of proceeds from criminal
activities and of the financing of terrorism”; - the “Law on fraud and counterfeiting
of Euro banknotes and coins”; - the “Law concerning the size, specifications, reproductions,
substitutions of and withdrawals from use of Euro banknotes and concerning the
implementation of measures to be taken against the irregular reproduction of Euro
banknotes and the substitution of and withdrawal from use of Euro banknotes”; and
the “Law regarding the face, unitary value and technical specifications, as well
as the copyright of the designs of the national faces of the Euro coins destined
for circulation”. The process of drafting the above-mentioned Laws was conducted
with the assistance of the Mixed Committee, established in Art.11 of the Monetary
Convention, composed of representatives of Vatican City State and of the European
Union. The European Union delegation is composed of representatives of the Commission
and of the Republic of Italy as well as representatives of the Central European
Bank. The Law concerning the prevention and countering of money laundering and
of the financing of terrorism is published together with this Communiqué, while
the others will be published on the website of Vatican City State, at www.vaticanstate.va 2.
The Law concerning the prevention of money laundering and of the financing of terrorism contains
the following in a single piece of legislation: - specification of criminal activities
which comprise the laundering of money, self moneylaundering, and the so-called
“predicate crimes” (that is, the criminal activities which generate incomes, that
are subsequently laundered), for which penal fines are foreseen; - specification
of activities with a more administrative content related to international cooperation,
but also to prevention, for which pecuniary administrative fines are foreseen. The
above Law is based on the following main obligations: - “adequate verification”
of the counterpart; - registration and conservation of data concerning ongoing
relations and operations; - reporting of suspicious transactions. The structure
of this Law, while taking into account the specificity of the Vatican legal system
into which it is inserted, conforms to the principles and rules in force throughout
the European Union and is therefore in conformity with the norms of other nations
which have more developed rules in this regard. This is seen in the provisions
concerning, among other things, self money-laundering, the controls on cash entering
or leaving Vatican City State, the obligations regarding the transfer of funds,
and the heavy administrative sanctions that are applicable not only to legal persons
and entities but also to the physical persons who act on their behalf, by means
of the binding recourse action. 3. In conformity with what is found in the most
recent norms of the European Union, the Law on fraud and counterfeiting responds
to the need to adopt a solid network of legal protection of Euro banknotes and
coins from counterfeiting. This requires procedures of withdrawal from circulation
of counterfeited banknotes and coins, the reinforcing of penal sanctions, as well
as various forms of European and international cooperation. 4. The Laws concerning
the Euro banknotes and coins contain the following for those Banknotes and coins: -
norms for the protection of the copyright of the designs; - rules regarding size,
technical characteristics, circulation and substitution; - the prospective application
of administrative pecuniary fines for violation of any of these Laws. 5. The
drafting of the Laws that are adopted today does not involve Vatican City State alone. The
Holy See, which is legally distinct from Vatican City State and which directs entities
and institutions active in various areas, has adopted as its own the “Law concerning
the prevention and countering of the laundering of proceeds from criminal activities
and of the financing of terrorism”. The adoption of this Law was accomplished by
means of the “Apostolic Letter in the form of a Motu Proprio for the prevention
and countering of illegal activities in the area of monetary and financial dealings”. With
that Apostolic Letter, which is also published today and signed by the Supreme Pontiff Pope
Benedict XVI: - it is also established that the Law of Vatican City State and its
future modifications apply as well to the “Dicasteries of the Roman Curia and for
each and every institution or entity dependent on the Holy See”, among which the
Istituto per le Opere di Religione (IOR) is included, so as to confirm the latter’s
firm intention to operate according to principles and criteria which are internationally
recognized; - the Autorità di Informazione Finanziaria (AIF) is established, an
autonomous and independent body with the specific task of preventing and countering
the laundering of money and the financing of terrorism with respect to each subject,
both legal and physical, entity and institution of whatever nature, of Vatican
City State, of the Dicasteries of the Roman Curia and of all the other institutions
and entities dependent on the Holy See;
- the competent judicial authorities
of Vatican City State are henceforth delegated to exercise penal jurisdiction in
regard to the above-mentioned institutions, in the case of crimes related to money-laundering
and the financing of terrorism. The Apostolic Letter is published on the Holy See’s
website, at www.vatican.va 6. The AIF, whose President and members of the Governing
Council are appointed by the Pope, is charged with the task of adopting the complex
and delicate norms of implementation which are indispensable in ensuring that the
subjects of the Holy See and of Vatican City State – from 1 April 2011 – will respect
these new and important obligations aimed at countering the laundering of money
and the financing of terrorism. On 1 April 2011, the “Law concerning the prevention
and countering of the laundering of proceeds from criminal activities and of the financing
of terrorism” will enter into force. 7. Experience will help to refine and integrate
the new norms concerning the prevention and countering of money-laundering and
the financing of terrorism in accordance with the principles and the standards
in force in the international community; such need might derive from the Holy See’s
and Vatican City State’s openness to deal with competent international instances in countering
both money-laundering and the financing of terrorism. 8. These new Laws are part
of the Apostolic See’s efforts to build a just and honest social order. At no time
may the great principles of social ethics like transparency, honesty and responsibility
be neglected or weakened (cf. BENEDICT XVI, Caritas in Veritate, 36).