The Vatican City State and the reform of ASIF: greater operational autonomy and better protection for IOR users

Strengthening the autonomy and functional independence of ASIF (Financial Supervision and Information Authority), a new system of external accountability and simplified governance. Finally, greater protection for users of the Institute for Religious Works (IOR). These are some of the changes introduced by Pope Leo XIV with the adoption of a new Statute and the Authority’s first internal regulations. The measure is not an isolated act, but the outcome of a process of alignment with international standards on the prevention and combating of money laundering, the financing of terrorism and the proliferation of weapons of mass destruction.

The new Statute specifically incorporates the provisions of the Sixth Anti-Money Laundering Directive (Anti-money laundering, anti-money laundering editor’s note) and the Egmont Group Statute of November 2025. ASIF’s autonomy and functional independence are requirements set out in international standards for authorities responsible for financial supervision and reporting. At the same time, ASIF reports directly to the Economic Council, which receives the annual report and approves the financial statements, and may request periodic reports on the activities carried out.

The new governing body will consist of a director and a deputy director, who will be required to carry out in-depth, expert analysis of matters within their remit, supported by the Advisory Boards. The director, as stated in the Royal Decree of 25 June 2026 by Pope Prevost, is appointed by the Supreme Pontiff for a five-year term “from among persons of proven integrity, without conflicts of interest and with recognised expertise in the legal, economic and financial fields and in the areas falling within the Authority’s remit”. Similar provisions apply to the deputy director, who is appointed by the Pope on the recommendation of the director, and who stands in for the director in his or her absence.

During the Sede vacante, the director ceases to hold office and the conduct of ordinary or urgent business is entrusted to the deputy director. The Consultors shall be selected ‘from among those who distinguish themselves for their learning, proven ability and prudence’. They too are appointed for a five-year term by the Pope, on the recommendation of the Director, through the Secretariat of State. The Consultors serve without remuneration and give their opinions in writing; however, when necessary, they may be summoned to examine specific matters.

The offices will be organised internally according to ASIF’s three main functional areas: supervision and regulation relating to the prevention and combating of money laundering, the financing of terrorism and proliferation weapons of mass destruction; financial intelligence; prudential supervision and regulation . The Head of Legal Affairs, in addition to supporting the Director and the various departments, represents the Authority in court and manages litigation, handles the legal aspects relating to the exercise of sanctioning powers and the performance of the alternative dispute resolution function concerning the provision of financial services. It is also responsible for fundamental rights in the context of financial reporting. ASIF’s arbitration jurisdiction is extended by the new Statute to all financial services offered by the IOR, broadening its scope beyond payment systems alone.