Moneyval Report a ‘positive sign’: Vatican Official
Vatican City, 12 December 2013: European evaluators have highlighted the progress
made in the past year by the financial institutions of the Holy See in a progress
report published on Thursday. The Council of Europe’s Moneyval published the report
as a follow-up to its original 2012 report, which named several areas that needed
updating to meet international standards. Since that time, several new laws have been
passed by the Holy See and Vatican City State to better implement the suggestions.
While
speaking to Vatican Radio’s Bernd Hagenkord about this latest report, the Director
of the Vatican's Financial Information Authority, René Brülhart said ‘the report has
been fully adopted. It is a very positive sign, and obviously it seems we have satisfied
Moneyval, otherwise the report would not have been adopted.
The Vatican joined
Moneval in 2011, two years ago now. When asked ‘would you call it a success story?
He said: we see a clear process which has been initiated: A clear path we are taking
step by step. Now, with the publication of this report, and the adoption on Monday
of this week, it is a clear indication that we are implementing and also applying
international standards. Now if this is the criteria: Yes, it is a success story.
Here
is the interview in full
You have just returned from Strasburg [from meetings
with Moneyval]. Are you happy with these discussions and this report.
The report
has been fully adopted, so yes I think it is a very positive sign and the resolve
you see is a very good one.
Is Moneval also happy?
I can’t talk for
Moneyval, so I think the question should be addressed to them, but the discussions
we had were very much focused…done in a very constructive manner. When you look at
the report, it is a very comprehensive report, describing very much in detail about
the steps the Holy See has taken over the last months, and obviously it seems we have
satisfied Moneyval, otherwise the report would not have been adopted.
Last
time we heard from Moneyval there was a kind of rating system, 16 important points,
9 of which fulfilled by the Vatican. Is there some ratings system this time as well?
What
has been presented this morning is a so-called progress report, which is a follow-up
report to the report which has been presented in July 2012, and based on the rules
of procedures of Moneyval these progress reports never have any kind of re-rating.
In other words, this report focusses on the implementation of the recommendations
which have been made by Moneyval in its report of July 2012.
What recommendations
are we talking about precisely?
There are recommendations on several levels.
Mainly on the legal framework to implement additional issues – I will get to that
in a second – but then also on the institutional and operational level. If you look
back over the work we have carried over the last months, on the legal framework we
came out with a completely revised anti-money laundering law entering into force on
October 8th. On the institutional level, we have a new statute for AIF [Financial
Information Authority] which is a few weeks old, clearly defining the functions and
responsibilities of this authority, but also on the operational level. In particular
here, on the reporting system, where we have clarified some of the issues. Almost
more important, also on international cooperation, where we have become member to
the Egmont Group in the July. The Egmont Group is the worldwide association of so-called
financial intelligence units. It has something like 139 members at the moment. And
we have also signed different “memorandum of understanding” which allows us to cooperate
with other countries, among them are countries like Italy, the United States of America,
and Germany.
When you talk about operative level? What are you talking about?
Staffing? What exactly is that in the operative sense, in the things that you actually
do?
Ultimately, it is the concrete work you are doing, so mainly receiving
suspicious transaction reports, analyzing them, and if we have some kind of let’s
say “enhanced suspicion” to forward that to the Promoter of Justice. On the other
hand, then also to carry out a type of inspection – where we have carried out two
ad-hoc inspections over the last month – to make the whole system become functional;
and, what you see now, it is functional.
You mentioned the suspicious transactions.
Last year, if I remember correctly, there have been about 6. This year, a lot more:
more than 100. What does that tell you?
Yes. We see for until the end of October
2013, we see 105 suspicious transaction reports: A clear indication that the reporting
system works. Now, we talk always about suspicious transaction or activity reports.
So we talk about a suspicion. It doesn’t mean we talk about money laundering cases
ultimately, as such. Important is that where a financial institution has a suspicion
or a reasonable ground for suspicion, that a report is filed with the Financial Intelligence
Unit, in that case it is us, AIF, and then it is up to us to analyze them, and then
to take further steps.
You are the head of the supervisory authority, the AIF:
You come back from Strasbourg, from this meeting with Moneyval, what’s next on your
desk? What are you going to do next?
Don’t worry! There is still some work
waiting for us, but we are very happy to continue this path. One of the next steps
will be, and this will be done shortly, is to carry out so-called onsite inspections,
mainly at the IOR. One of the goals of that is to verify the so-called remediation
process, which is currently in place. This remediation process is carried out under
our supervision, as such, however we want to look in greater detail into how this
is done. And also, we will have to – especially under the supervisory department,
we have this new function as prudential supervisor – we will have to look into staffing
to bring the relevant expertise – or further expertise – into to the Authority to
carry out this work in a very constructive and sustainable manner.
The Vatican
joined Moneval in 2011, two years ago now. Would you call it a success story?
It
is not for me, to judge whether it is a success or not. We see a clear process which
has been initiated: A clear path we are taking step by step. Now, with the publication
of this report, and the adoption on Monday of this week, it is a clear indication
that we are implementing and also applying international standards. Now if this is
the criteria: Yes, it is a success story. Source: VR Sedoc