Vatican and US sign Anti-Money-Laundering Deal

On May 7, Vatican took a step to make its finances more transparent, signing a deal with United States regulators. Under the signed document, each side will share information about financial transactions with a view to root out money laundering and other illicit dealings.

The deal announced by the Vatican marks the latest move by the world’s smallest state in response to international pressure to better police its finances. The efforts began in 2010 in the wake of an investigation by Italian prosecutors into whether the Vatican bank had violated Italy’s money-laundering laws.

Measures so far have included laws against money laundering and terrorist financing. This regulation helps bring to justice anyone who commits financial misdeeds on the territory of Vatican. Also, it suggests the creation of the watchdog called Financial Information Authority (FIA).

In accordance with the new agreement, the FIA and the US Treasury Department’s Financial Crimes Enforcement Network will be able to share information about financial transactions in their respective territories.

It should be noted that the FIA is discussing similar agreements with about 20 other countries.

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