Pope Francis' Financial Reforms Rattle Vatican's Old Guard

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• published: 15 Jul 2015
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When the College of Cardinals elected the new head of the Roman Catholic Church two years ago, Pope Francis was given the mandate to put the Vatican's dysfunctional administration in order. As the papacy's enters its third year, some of the biggest reforms have been achieved in the Vatican's finances, long tainted by scandal. Three days after his election, Pope Francis made clear his vision of what the Catholic Church should be when he exclaimed, "Oh, how I would love a poor church ... for the poor." But the pope did not mean he wanted a church with empty coffers. The Vatican's finances had long been plagued by suspicion of corruption. In order to clean house, Pope Francis created a new department, the Secretariat for the Economy, and chose as its prefect an outsider to the opaque and secretive world of the Vatican bureaucracy. Australian Cardinal George Pell arrives for a meeting at the Vatican. Last year, Pope Francis named Pell as prefect of the newly formed Secretariat for the Economy to oversee the Vatican's finances.i Australian Cardinal George Pell arrives for a meeting at the Vatican. Last year, Pope Francis named Pell as prefect of the newly formed Secretariat for the Economy to oversee the Vatican's finances. Andrew Medichini/AP A New Order Shortly after taking over his new job, Australian Cardinal George Pell spoke to the media. "We are working so that international financial standards will be followed in all the dicasteries [departments] and sections of the Holy See," Pell said. For an organization that in the past had been accused of money laundering, Cardinal Pell set the bar very high. "We are aiming at a substantial transparency," he said. "Our ambition is to become something of a model of financial management, rather than a cause for occasional scandal." Published on Jul 15, 2015 A conversation with: René Brülhart President, Financial Information Authority (FIA) of the Holy See and Vatican City State Moderated by: Juan C. Zarate Senior Advisor, CSIS Board of Directors, FIA Chairman, FDD’s Center on Sanctions and Illicit Finance Former Deputy Assistant to the President and Former Deputy National Security Advisor for Combating Terrorism Established in 2010, the Financial Information Authority (FIA) is the Holy See’s arm responsible for confronting money laundering and the financing of terrorism. In 2013, Pope Francis expanded the responsibilities of the FIA to further bring Vatican financial activity in compliance with international standards. René Brülhart is the President of the FIA, having previously served as the FIA’s director, as vice-chair of the Egmont Group of Financial Intelligence Units, and as head of Lichtenstein’s financial intelligence unit. This discussion will cover current efforts to reform Vatican financial processes, as well as the tools being used in the international financial system to confront terrorism,organized crime, and other criminal activity.