Pope Leo XIV in New Chirograph Overhauls Vatican Financial Watchdog (ASIF) to Match Global Standards
The Vatican has enacted an organic reform of its Supervisory and Financial Information Authority (ASIF). Approved by Pope Leo XIV, the overhaul introduces a new Statute and its first-ever Internal Regulations, pivoting the agency toward a leaner governance model and stricter international compliance.
In the introduction of the new Chirograph, Pope Leo XIV writes, transparency, integrity, and accountability in economic and financial activities are essential elements of good governance and service to the common good that must characterize the institutions of the Holy See and the Vatican City State. For this very reason, the Holy See has committed itself, with continuity and determination, to the progressive strengthening of its regulatory and institutional framework, developing a comprehensive system of prevention, oversight, and control based on the principles of legality, transparency, proportionality, and cooperation with international counterparts.
This commitment has translated, over the years, into the adoption of increasingly comprehensive regulations for the prevention and combating of money laundering, terrorist financing, and the proliferation of weapons of mass destruction, as well as the constant improvement of supervisory mechanisms for entities conducting financial activities. Likewise, increasingly structured legislation has been developed to ensure the sustainability, as well as the sound and prudent management, of entities professionally conducting financial activities, in compliance with both the unique mission entrusted to them and the most stringent international benchmarks.
The Holy See intends to continue with conviction on this path, promoting an order that, in harmony with the highest international standards and respecting its own institutional characteristics, can actively contribute to the integrity and security of the international financial system.
In this context, the Financial Supervision and Information Authority (ASIF) plays a primary role as the competent authority, pursuant to current legislation, for supervision, regulation, and financial information.
Under the new structure, the positions of President and Board have been abolished. Instead, ASIF will be led by a Management team consisting of a Director and a Deputy Director, supported by a panel of expert Consultors.
1. Aligning with Evolving Global Standards
This reform is the latest step in the Holy See’s multi-year effort to align Vatican City with international frameworks for prudential supervision and anti-money laundering (AML), countering the financing of terrorism (CFT), and halting the proliferation of weapons of mass destruction.
The new Statute directly integrates recent global regulatory shifts, including:
The European Union’s Sixth Anti-Money Laundering Directive (AMLD VI), which is slated for imminent transposition into Vatican law.
The Egmont Group Statute adopted in November 2025.
2. Balancing Autonomy with Accountability
International standards require financial intelligence and supervisory bodies to operate without external interference. To meet this, the reform reinforces ASIF's operational autonomy and functional independence.
However, independence is balanced with a robust new accountability framework. ASIF will now report directly to the Council for the Economy (per Article 210 of Praedicate Evangelium). The Council will:
Approve ASIF’s financial statements.
Review its annual reports.
Possess the authority to request periodic updates on its activities.
3. A Leaner, Function-Driven Structure
The shift from a Board-led model to a streamlined Management team is designed to accelerate institutional responsiveness and clarify decision-making.
Operationally, ASIF’s internal offices remain independent and are structured around three core pillars:
AML/CFT and Counter-Proliferation supervision and regulation.
Financial Intelligence.
Prudential Supervision and regulation.
Additionally, a new cross-functional Head of Legal Affairs position has been created to ensure overarching legal consistency across all departments.
4. Expanded Protection for IOR Users
The reform significantly broadens consumer protection for those banking with the Institute for the Works of Religion (IOR). ASIF’s arbitration jurisdiction over disputes between users and the IOR—previously restricted solely to payment systems—has been expanded to cover the entire spectrum of financial services offered by the bank.
The Big Picture: This overhaul is not a final destination, but a major milestone. It underscores the Holy See's ongoing commitment to maintaining transparent, rigorous, and secure financial institutions fully integrated into the global fight against financial crime.
Source: https://www.vaticannews.va/en/vatican-city/news/2026-06/pope-leo-vatican-asif-finance-new-statute-regulations-reform.html
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