
Vatican City, Apr 27, 2018 / 06:20 am (CNA/EWTN News).- The Vatican’s annual financial report this year showed that monitoring systems put into place nearly five years ago continue to be effective, however, there is still room to grow in terms of prosecution for questionable activities.
In comments to journalists during a May 27 press briefing, Rene Bruelhart, president of the Vatican’s Financial Intelligence Authority (AIF), said the report for 2017 shows “a clear commitment from our side to continue to report in the most transparent way possible on our activities.”
Two keywords that can sum up the AIF activities for 2017, he said, are “consolidation and normalization,” particularly in terms of implementing a sustainable regulatory and reporting system, as well as growing relations with domestic and international bodies.
Bruelhart, a Swiss lawyer, was tapped to head the AIF after it was established by Benedict XVI in 2010 to supervise the Vatican’s financial activity and prevent and counter money laundering.
Carried forward under Francis, the AIF works alongside other financial entities in the Vatican, such as the Secretariat for the Economy and the Council for the Economy, both of which were established by Pope Francis as part of his ongoing reform of the Roman Curia.
With full autonomy the AIF also monitors and reviews actions carried out by the Administration of the Patrimony of the Holy See (APSA), which oversees the Vatican’s real estate, and the Institute for the Works of Religion (IOR), more often referred to as the “Vatican bank.”
Bruelhart was present alongside AIF director Tommaso Di Ruzza at a May 27 press briefing on the AIF’s 6th annual report, which covered 2017 and summed up their continued efforts to build relationships with other states and crack down on suspicious financial activity within the Vatican.
Most notably, the report detailed that it was the AIF which first flagged the diversion of significant funds from the Vatican’s Bambino Gesu Children’s hospital to renovate Cardinal Tarcisio Bertone’s apartment in Rome.
The case exploded in the media, and in October 2017 the former president of the hospital, Giuseppe Profiti, and former treasurer, Massimo Spina, were been charged with the illicit use of hospital funds in the amount of 422,005.16 euros ($480,600.58) to refurbish the flat.
In total for 2017, 150 Suspicious Activity Reports (SARs) were filed with the AIF, compared to last year’s 207. The reason for the decrease, according to AIF Director Tommaso Di Ruzza, is that the quality of the entity’s reporting system has improved, “showing a growing awareness and strengthening of the control functions of the reporting subjects.”
Of the 150 flagged transactions, 8 were submitted by the AIF to the Vatican Office of the Promoter of Justice during 2017, of which nearly all involved potential financial crimes with foreign individuals or entities either within or in connection with a foreign jurisdiction.
The potential crimes flagged include international fraud, including fiscal fraud and market abuse.
In only one case did the Vatican tribunal freeze an account after a questionable cross-border transaction amounting to roughly 1,757 euro, or $2,122, which took place in 2016, which the AIF said it had flagged and submitted in 2015.
According to the report, none of the activities or transactions reported in 2017 were related to terrorism.
Since 2015, the AIF has presented some 54 reports to the Promoter of Justice. When asked why there has not been a higher number of cases prosecuted in the Vatican courts, which in the past has been identified as an area of weakness, Bruelhart said it will take time to adequately develop the system put into place, and is up to the Promoter of Justice to determine how to act on reports submitted by the AIF.
It is unclear how many of the 54 transactions flagged and sent to the Promoter of Justice have been looked into or investigated. However, “it’s important to remember where we’re coming form,” Bruelhart said, noting that the current system has been built only within the past 5-6 years, and new entities have been established, including the secretariat and council for the economy.
“It has been a new world” for the Promoter of Justice, he said, adding that in his view, the chain of activities that has taken place “has moved in the right direction” and “a lot of progress” has been made.
Noting how the first conviction took place just last year, he said “work is ongoing” in this area, and he expects to see more progress in the future.
“There is a very good dialogue with the office of the promoter of justice,” he said, adding that “it’s about building a dialogue together,” but ultimately the office is the only one responsible for what they decide to do.
Responding to criticism that the Vatican’s financial reform has made little progress, Bruelhart pointed to all the steps that have been taken so far in the past six years, saying if each of them are broken down, one can see that “a lot has been done in a very very short amount of time.”
Change, he said, takes time and at times one needs to take a step back to fully appreciate the progress and continue to go forward. “Its a process, but there is life in this process,” he said.
In addition, the AIF in 2017 also cracked down on transparency and accountability for donations made for institutional and charitable purposes, as well as interactions with what they have dubbed “high risk states” which do not have proper monitoring systems in place.
The crack down on transactions for charity and donations comes after a law was introduced Nov. 22, 2017, on the “Registration and Supervision of Non-Profit Organizations.”
The AIF also signed an additional 19 Memoranda of Understanding (MoU) with foreign counterparts, bringing the bringing the number to 57, and exchanged information in some 282 cases.
In an April 27 press release on the AIF report, Di Ruzza stressed the importance of these relations, saying that “considering the potential risks linked to the universal projection of the Holy See, international cooperation is pivotal.”
These type of cross-border agreements are designed to crack down on money laundering and tax evasion, ensuring that the IOR does not become a tax haven.
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Reference is made to the 2018 statement by the International Theological Commission (ITC), and then we read further: “Speaking of the Church as ‘synodal’ by its nature is something novel, the commission said, and required “careful theological clarification.”
As for “theological clarification,” this from the ITC:
“…It is essential that, taken as a whole, the participants give a meaningful and balanced image of the local Church, reflecting different vocations, ministries, charisms, competencies, social status and geographical origin. The bishop, the successor of the apostles [!] and shepherd of his flock who convokes and presides over the local Church synod, is called to exercise there the ministry of unity and leadership with the authority which belongs to him” (n. 79).
“…called to exercise…the authority which belongs to him?”
Hmm, forgot about that. The synodal Vademecum casts bishops “primarily as facilitators” and yet warns not to fall for “passing opinions”–a feeble allusion, perhaps, to the eclipsed Deposit of Faith versus the Zeitgeist?
So now, the self-credentialed sociologist-scientist (!), and relator-general of the 2023 Synod on Synodality, Cardinal Hollerich, can clarify (!), all by himself his superior wisdom: “I believe that the sociological-scientific foundation of this teaching [on sexual morality] is no longer true [….] I think it’s time we make a fundamental revision of the doctrine” https://www.aol.com/news/liberal-cardinal-calls-revised-catholic-135429645-181222377.html
The “synodal process […] within the Council’s wake.” Or is it the secular world’s “woke?” So, yes, to a smoother and synodal Church fabric of consultation, and yes to the concluding remark: Jesus Christ as “the way, and the truth, and the life.”
Butt, first, “Jesus Christ, the same yesterday, today and forever” (Heb 13:8). Yes? Hopefully the lights go on before Hollerich’s synodal synthesis! in 2023: You just can’t put lipstick on that pig.
I wouldn’t be quite so skeptical if I heard less from Cdl. Grech and more from Cdl. Ratzinger/BXVI.
A “synod of the whole Church” is not in any of her sources. If they mean to call another Council they haven’t said it nor have they identified what it is.
VATICAN II mentions synods in the context of the ordinary practice of the Church over many centuries -nothing more. Anything else would be over-reaching.
If you set up something as “synod” that’s not really what the Church has lived, everything in it is going to be skewed, misshapen and out of proportion.
Quoting Benedict XVI or anyone else will be out of context. If it is something entirely new you should just say that and find a name for it without trying to automatically legitimize it using the word “synod”.
Neither the first Mass -the Last Supper- nor the ordinary Mass is a synod. Just because the word “synod” has a relation with “Church” it it doesn’t mean you can use it.
Perhaps what the Pope has in mind is a gathering alike to the Lord giving the Sermon on the Mount; with the Pope teaching how the Beatitudes are to be lived today?
And the justification would be that “VATICAN II wanted to avoid ‘denunciations’ while maintaining a ‘pastoral’ bearing”? Even that stretches VATICAN II though.
In some ways they are being very candid yes -while unctioning a collective passivity, which yet doesn’t make up for what is lacking. But it is so “developmental” piecemeal and adapting that it’s not possible to know what to put where.
Apparently the Holy Spirit is already sanctioning it (and the use of “synod”), since, as they are saying, He is showing His intent what He wants for the whole Church, apart from VATICAN II but envisaged in VATICAN II.
Well, well, well, what do they have there.
“The [2018] CDF document said the more modern view of a synod [is] that its development was accompanied by the neologism of synodality”. A perfect tautology, open to invention.
Pope Benedict XVI is quoted in the Oct 10 message, that the “synodal dimension is constitutive of the Church: it consists of a coming together of every people and culture in order that they become one in Christ and walk together, following him, who said: I am the way, and the truth, and the life” (Benedict in Angelus 5 Oct 2008). Although Benedict, in this documented 2008 Angelus clearly articulates the continuity of doctrine between pontiff and bishops. “The purposes of the Synod of Bishops, [is] to promote a closer union and greater collaboration between the Supreme Pontiff and the Bishops worldwide, to provide accurate and direct information concerning the Church’s circumstances and problems, to facilitate agreement on matters of doctrine and pastoral action” (Benedict in Angelus 5 Oct 2008).
There isn’t any semblance in what Benedict said then, and what is proposed now by Cardinals Grech, Hollerich within the Synod on Synodality.
Grech ought to be prosecuted for micro-aggression–this homophobic talk about “fruits” of the Council. You just can’t get good help these days.
Elias Galy – Yes, throwing in a quote from BXVI is just for cover. Interesting that they see the need.
Gilberta thank you. If I was instead structuring a study of it to make it in book form, I’d try to be more factual as you see Fr. Morello doing on this page. So much of that kind of background information escapes me though; and it is hard-going to bring it together at any given point in time, when the work for it, on my part, is still not done! You see.
Some areas are non-factual, eg., the Holy Father warns against Pelagianism /neo-Pelagianism; but, What is Fr. James Martin preaching in the name of the faith?
Some things have become so circulated we can’t even remember who first announced it or if Pope Francis ever conditioned it. As we are urged to “move forward” we can’t tell if Pope Francis will back it.
And then they have floated strange ideas, like: being pro-life (as always understood) means you are insensitive to “other life issues”, as if there is some a priori implacable evil connection or division between such “two sections” in a pro-life person, or proven terrible neglectful attitudes in care the elderly, by pro-lifers.
I’m going with Cdl. Muller and Francis Maier on this Synod of Synodality business.
I pray for Fr. Benedict and I hope you will not leave him out of your own prayers.
Cardinal Muller has been lucid and very good on instruction; and he lends his stability.
The resolution of the “progressives/conservatism” dichotomy is not the purpose of VATICAN II and I believe that the “stand-off” is all too consuming for some. The Holy Father seems to have tried to “move forward” from it, or, tried to get other past it, by introducing a tertium quid; but, yet, by hitting many wrong notes together.
The charity that is aimed for in the Council is for witness that expresses unity of doctrine and discipline. Thus, separating doctrine and discipline is contrary to faith and reason and the Council and elicits lack of depth. I’m trying to be non-abrasive.