The Vatican has reported a significant drop in suspicious financial activity, marking a 33% decline in 2024 compared to the previous year, according to its financial watchdog, the Supervisory and Financial Information Authority (ASIF). This reduction is seen as a tangible outcome of continued efforts to improve financial transparency within the Holy See.

ASIF's annual report, released on April 9, disclosed that 79 suspicious activity reports (SARs) were filed in 2024, down from 118 in 2023. These reports mainly stemmed from the Vatican Bank—formally known as the Institute for the Works of Religion (IOR)—as well as other Holy See institutions. Though the volume of suspicious transactions has decreased, authorities acted swiftly in serious cases, freezing two bank accounts totaling €2.12 million and suspending three separate transactions worth €1.06 million.

Despite the lower number of alerts, ASIF forwarded 11 cases to the Vatican’s judicial authorities for further investigation. As of now, no indictments have been filed, but ASIF President Carmelo Barbagallo emphasized that the institution remains vigilant. He noted that the decline in reports does not indicate reduced oversight, but rather reflects enhanced internal controls and compliance mechanisms put in place in recent years.

This progress aligns with broader financial reforms initiated under Pope Benedict XVI and accelerated under Pope Francis. These reforms include restructuring the Vatican Bank, improving transparency measures, and increasing cooperation with international financial oversight bodies. In May 2024, the European anti-money laundering body Moneyval acknowledged the Vatican’s strides toward international financial standards, especially in the area of information sharing and prosecution capability.

A key highlight of these reforms is the change in legal procedures that allows senior Vatican officials, including cardinals, to be prosecuted in lay criminal courts rather than ecclesiastical tribunals.

ASIF's report concludes that while challenges remain, the trajectory of Vatican financial governance is increasingly aligned with global norms. The steady decrease in suspicious financial flows reflects both stronger internal vigilance and an organizational culture that is progressively less tolerant of financial misconduct.

Source: Reuters