FX.co ★ Pope revolutionizes Vatican’s obscure finance system

“The Holy Father today announced a new coordination structure for economic and administrative affairs of the Holy See and the Vatican State,” the communique says. The resolution on creating a finance ministry comes from Pope Francis I to oversee the Holy See’s economic affairs. According to the press office, Australian Cardinal George Pell appointed to Prefect for the Economy of the Holy See. Under his supervision, the new ministry, formally a “Secretariat for the Economy”, will be responsible for management, an annual budget, and Vatican's financial matters. The new Prefect will be reporting directly to the council consisting of eight cardinals and seven lay financial and credit experts. Interestingly, the governing board members were enrolled according to the territorial aspect. Thus, the eight cardinals of the council represent different regions worldwide. Moreover, Pope Francis I is going to set up the central bank of Vatican amid the massive restructuring. The new decree stipulates that Vatican's Administration of the Patrimony of the Apostolic See or A.P.S.A. will be reorganized into the central bank. Earlier, this function was unofficially performed by the Institute for Works of Religion (IOR) which was responsible for all financial affairs of the Holy See. At year-end 2012, the Institute yielded €86 million net profit. Currently, it is still keeping its status. Nowadays, the global community is certain that the Holy Church urgently needs reforms which are supposed to support the struggle with money laundering and other fraudulent schemes. That is why the Pope had to listen to the expert advice and start off reforms of the scandal-plagued Vatican’s finances.