(ZENIT News / Rome, 07.02.2026).- Fifteen years after the Holy See created its financial watchdog to combat illicit financial activity, Pope Leo XIV has approved a comprehensive reform designed to reinforce the Vatican’s commitment to transparency, regulatory credibility and international cooperation.
The reform introduces a new Statute and, for the first time, an Internal Regulation for the Authority for Financial Supervision and Information (ASIF), the institution responsible for overseeing the Vatican’s financial system and monitoring compliance with international standards on anti-money laundering, counter-terrorist financing and prudential supervision.
Rather than representing a break with previous reforms, the new legislation builds upon a process that has unfolded over more than a decade. During that period, the Holy See and the Vatican City State have progressively modernized their financial legislation in response to evolving international requirements, seeking to strengthen confidence among foreign regulators and financial institutions while safeguarding the integrity of Vatican financial operations.
The latest reform comes as global standards continue to become more demanding. International bodies such as the Financial Action Task Force (FATF), the Egmont Group of Financial Intelligence Units and the European Union have significantly updated their regulatory expectations for financial intelligence authorities in recent years. The Vatican’s revised legal framework incorporates these developments, including provisions aligned with the Sixth European Union Anti-Money Laundering Directive, which is expected to be incorporated into Vatican legislation, and the revised Statute of the Egmont Group adopted in November 2025.
By aligning its internal structures with these internationally recognized benchmarks, the Holy See aims to preserve its standing as a credible partner in the global fight against financial crime, including money laundering, terrorist financing and the proliferation of weapons of mass destruction.
One of the reform’s central objectives is to reinforce ASIF’s operational independence. International standards emphasize that supervisory and financial intelligence authorities must be able to conduct investigations and exercise oversight without improper external influence. The Vatican’s new Statute therefore strengthens the Authority’s institutional autonomy while simultaneously establishing a clearer system of accountability.
Under the new framework, ASIF will report directly to the Council for the Economy, in accordance with the Apostolic Constitution Praedicate Evangelium. The Council will receive the Authority’s annual report, approve its financial statements and may request periodic reports on its activities. The arrangement seeks to balance two complementary principles: operational independence for technical decisions and institutional accountability for the stewardship of public responsibilities.
The reform also reshapes the Authority’s governance. The previous leadership model, centered on a President and governing Council, has been replaced by a streamlined executive structure consisting of a Director and Deputy Director, supported by a group of expert Consultors. According to the new Statute, this simplified organization is intended to accelerate decision-making, clarify institutional responsibilities and strengthen dialogue with external supervisory bodies while preserving the high level of technical expertise required in financial oversight.
Internally, ASIF’s work will continue to be organized around its three principal areas of responsibility: supervision and regulation concerning anti-money laundering, terrorist financing and the financing of weapons proliferation; financial intelligence; and prudential supervision of financial institutions. The creation of a new Head of Legal Affairs introduces an additional layer of legal coordination intended to ensure consistency across all areas of the Authority’s activities.
The reform also expands protections for users of Vatican financial services. ASIF’s arbitration powers, previously limited to disputes involving payment systems, will now extend to the full range of financial services offered by the Institute for the Works of Religion (IOR), commonly known as the Vatican Bank. The broader jurisdiction is intended to provide a more comprehensive mechanism for resolving disputes and strengthening confidence in the Vatican’s financial institutions.
Although the Vatican’s financial reforms have often attracted attention because of past controversies, the current measures reflect a longer-term institutional strategy rather than a response to any single event. Since the establishment of ASIF fifteen years ago, the Holy See has steadily revised its legislation, strengthened oversight mechanisms and expanded cooperation with international regulatory bodies in an effort to ensure that its financial system meets the same expectations of transparency and integrity applied to other jurisdictions.
For Pope Leo XIV, the reform represents one of the earliest institutional initiatives of his pontificate in the field of financial governance. It signals continuity with the Holy See’s ongoing commitment to international standards while emphasizing that financial transparency is not merely a technical requirement but an essential element of responsible stewardship.
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