Benedict XVI has instituted a new agency to monitor all Vatican financial operations and make sure they meet international norms against money-laundering and the financing of terrorism.
The Pope issued an Apostolic Letter on December 30 that established the Financial Information Authority as an independent agency to oversee the monetary and commercial activities of all Vatican-related institutions, including the Vatican bank.
At the same time, the Vatican promulgated a detailed new law that defined financial crimes and established penalties - including possible jail time - for their violation. The list of transgressions includes corruption, market manipulation, fraud and virtually any activity that facilitates or provides funding to acts of terrorism. The new law, which reflects the latest European Union regulations, takes effect on April 1.
