U.S. Enlists Vatican to Money-laundering Inventory

U.S. Enlists Vatican to Money-laundering Inventory

The Vatican is included for the first time on the State Department's list of money-laundering centers though the tiny city-state is not rated as a high-risk country.

The 2012 International Narcotics Control Strategy Report was made public on Wednesday and Washington's list of 190 countries classifies them in three categories: of primary concern, of concern and monitored.

The Vatican City is in the second category, grouped with 67 other nations including Poland, Egypt, Ireland, Hungary and Chile.

It was added to the list because it was considered vulnerable to money-laundering and had recently established programs to prevent it, a State Department official said.

"To be considered a jurisdiction of concern merely indicates that there is a vulnerability to a financial system by money launderers. With the large volumes of international currency that goes through the Holy See, it is a system that makes it vulnerable as a potential money-laundering center," Susan Pittman of the State Department's Bureau of International Narcotics and Law Enforcement, told Reuters.

Last year, the Vatican adapted internal laws to comply with international standards on financial crime.

The Vatican is seeking inclusion on the European Commission's so-called "white list" of states who comply with international standards against tax fraud and money-laundering. A decision on its inclusion is expected in June.

"Our aim is to make the 'white list' and we are happy that we have been put in the State Department's less vulnerable category," a Vatican official said, speaking on condition of anonymity.

The category of most vulnerable centers includes all members of the Group of Eight countries, including the United States, Germany, Italy and Russia, because the size of their economies and banking systems can facilitate money-laundering. It also includes small centers such as Britain's Channel Islands.

Posted by James Fried on Friday March 09 2012, 4:39 AM EST. Ref: Google. All trademarks acknowledged. Filed under Featured News, World. Comments and Trackbacks closed. Follow responses: RSS 2.0