Vatican's Financial Authority records uptake in suspicious IOR transactions reports
(Vatican Radio) The Vatican ‘s Financial Intelligence Authority revealed on Monday
that it has recorded an increased number of suspicious financial transactions being
reported in its monitoring of financial activities of the IOR – the Istituto per le
Opere di Religione, or Vatican Bank.
The so called “AIF” was releasing its
annual report at a press conference in the Vatican.
Authority Director, René
Bruelhart, said the report showed that there were 202 suspicious transactions reported
to the Financial Information Authority in 2013 compared with only six a year earlier
and just one in 2011.
Five of those were referred onto Vatican prosecutors
for possible investigation.
Bruelhart explained that the increase in numbers
of suspicious transactions doesn't mean that more illicit activity is taking place.
He said it just means that new laws and procedures are being implemented and are working
to flag potentially problematic transactions that may require further investigation.
Listen to an excerpt of Bruelhart's presentation at the press conference...
Please
find below the full text of the communiqué presented during the briefing on the Annual
Report of the Vatican’s Financial Intelligence Authority:
Legal framework
and operational performance in monitoring financial activities significantly improved
in 2013 .– First on-site inspection of the Istituto per le Opere di Religione (IOR)
in early 2014.
The Autorità di Informazione Finanziaria (AIF) of the Holy See
and the Vatican City State has presented its Annual Report for 2013. The report
reviews the activities and statistics of AIF for the year 2013.
The year
2013 has seen a significant strengthening of the legal and institutional framework of
the Holy See and Vatican City State to effectively combat financial crime, an institutionalization
of international collaboration of the competent authority of the Holy See with its
foreign counterparts, and a massively improved performance in monitoring potential
financial wrongdoing.
“In 2013 we have taken further decisive steps to
foster the legal framework, and, at the same time, to make it work in practice,”
said René Brülhart, Director of the AIF. He continued: “The Evaluation conducted
by Moneyval, the Committee of Experts on the Evaluation of Anti-Money Laundering
Measures and the Financing of Terrorism of the Council of Europe, in December 2013,
and our statistics allow us to say that today we have a proper and equivalent system
in place to prevent and fight financial crime. A system that is well in line with
international standards.”
The AIF has recorded a notable uptake in suspicious
transaction reports (STR) from 6 in 2012 to 202 in 2013. This increase reflects
both the development of the legal framework and a substantial improvement in the
operational performance of the supervised entities with regard to the prevention
of financial crime. Five reports have been passed on to the Vatican Promoter of
Justice for further investigation by judicial authorities.
The number of requests
from AIF submitted to foreign authorities has increased from 1 in 2012 to 28; the
number of requests received by the AIF from foreign authorities has climbed from
3 in 2012 to 53 in 2013. “This increase is also due to international cooperation fostered
by a series of bilateral agreements we have concluded,” said Brülhart. In 2013,
AIF became a member of the Egmont Group, the global network of Financial Intelligence
Units, and signed various bilateral agreements to institutionalize mutual collaboration
in the area of anti-money laundering and combating financing of terrorism. Memoranda
of Understanding have been signed with Germany, Italy, the Netherlands, Slovenia
and the United States.
As already observed in 2012, the number of declarations
of cash above the amount of EUR 10,000 has decreased again in 2013 to 1,557 declarations
for outgoing cash (2012: 1,782) and 550 declarations for incoming cash (2012: 598).
This is due to an increased monitoring by the competent authorities and the introduction
of reinforced procedures at the supervised entities. By way of two Motu Proprio
in July and August 2013, the Holy Father extended the competencies of the Holy
See authorities, particularly AIF, and aligned the legal framework with international
standards. By way of a third Motu Proprio in November 2013, the Holy Father responded
to the requirements set forth by the extension of responsibilities of the AIF by issuing a
new Statute for the AIF. In essence, the new Statute has built the AIF on two pillars, supervision
and financial intelligence, and has clarified some aspects with regard to the governance,
e.g. required professional and financial skills for key personnel of the AIF’s bodies. In
the initial trimester of 2014, AIF conducted the first ordinary on-site inspection
of the IOR to verify the implementation of the measures taken to prevent and counter
money laundering and the financing of terrorism pursuant to the Law XVIII of 8
October 2013.
The inspection has shown substantial progress made by the IOR
over the past 12 months. As a result of the inspection, AIF has developed an action
plan for the full adaption of procedures to the requirements of Law XVIII and the
implementation of further organizational and procedural improvements.
About
AIF The Financial Intelligence Authority is the competent authority of the Holy
See/Vatican City State for supervision and financial intelligence for the prevention
and countering of moneylaundering and financing of terrorism. Established by Pope
Benedict XVI with the Apostolic Letter in form of Motu Proprio of 30 December 2010,
AIF carries out its institutional activity according to the Statute attached to the above
mentioned Motu Proprio and the Law n. CXXVII of 30 December 2010, as subsequently amended
and integrated. In July 2013, AIF became a member of the Egmont Group. Currently,
AIF has signed Memoranda of Understanding for the international exchange of information
with financial intelligence units of other states, such as Australia, Belgium,
Cyprus, Germany, Italy, Monaco, the Netherlands, Slovenia, Spain and the United
States of America.