IRS Acknowledges Vatican Steps To Prevent Fraud | Catholic National Register
The Vatican awaits the publication of the Moneyval report on its financial transparency and the efficiency of the Vatican judicial system.
VATICAN CITY – The United States Internal Revenue Service has listed the Vatican City State as one of the countries that meet its international standards for customer due diligence.
With IRS approval of the Holy See and Vatican City State “Know Your Client Rules”, the tax administration recognizes the measures the Vatican has put in place to verify identity and client risk profiles.
These procedures are an essential element in the application of anti-money laundering and fraud prevention rules.
Vatican News highlighted the addition of the Holy See to the IRS list on June 2 as the Vatican awaits the release of the Moneyval report on its financial transparency and the effectiveness of the Vatican judicial system.
IRS cites recent changes to the Vatican criminal code, such as its money laundering regulations passed after Vatican police raided the offices of the Vatican financial authority and the office of the Secretariat of State on October 1, 2019, in connection with the Secretariat’s investment in a luxury property in London.
He also referred to changes to a Vatican law on transparency, surveillance, and financial intelligence adopted on October 10, 2020. A 15-page decree amended Law XVIII of 2013, which sets out provisions to combat financial intelligence. money laundering and terrorist financing.
Carmelo Barbagallo, chairman of the Vatican Financial Reporting and Supervisory Authority (ASIF), said the changes were aimed at tightening the regulation of financial flows in the Vatican in an effort to meet international standards.
“The latest amendments to Law XVIII are part of a global strategy aimed at making the management of the Vatican’s finances ever more transparent, within a framework of intensive and coordinated controls,” said Barbagallo.
Moneyval, the Council of Europe’s anti-money laundering watchdog, conducted a two-week on-site inspection of the Holy See and Vatican City last fall to judge the effectiveness of the legislation and Vatican and Holy See procedures to combat money laundering, in particular how the Vatican has succeeded in prosecuting these crimes in court.
Ruth Kelly, a member of the Vatican Economic Council, told EWTN News last month that the council still faces a “huge task” in its efforts to quickly bring the Holy See’s accounting and financial transparency to standards. international.
The Council of the Economy, responsible for setting the budget of the entities of the Holy See and raising the level of financial transparency, also implements an investment policy for the Vatican and “a vast training program” in standards. financial for those who work in its services. and dicasteries.
“In fact, I am very encouraged by the steps that I have seen, even though there is so much to do and a long way to go,” she said.