The Deutsche Bundesbank and the Vatican City State’s Supervisory and Financial Information Authority (Autorità di Supervisione e Informazione Finanziaria (ASIF) have signed a Memorandum of Understanding (MoU). This will formalise and deepening the existing fruitful cooperation between the two institutions. 

Bundesbank Executive Board member Burkhard Balz and ASIF Director Federico Antellini Russo signed the document in Vatican City in the presence of Under-Secretary of the Section for Relations with States and International Organisations of the Secretariat of State Monsignor Mihăiţă Blaj and Minister Plenipotentiary at the Embassy of Germany to the Holy See Christoph Braner. 

In his remarks, Mr Balz focused on the dialogue around the stability, values and transparency of international financial markets. The signing of the MoU marks a significant step forward for the Bundesbank’s long-standing special relationship with the Holy See. 

Within the Holy See and the Vatican City State, the ASIF is the authority responsible for the prevention of money laundering and financing of terrorism. Also, it performs due diligence on Vatican-related donations and large real estate contracts, among others. Further, it operates as the Vatican City State’s financial intelligence unit. Finally, it is the Vatican City’s financial regulator and supervises the only authorised financial institution in Vatican City, the Institute for the Works of Religion (Istituto per le Opere di Religione (IOR)). Established by Pope Benedict XVI in 2010, the ASIF gained further recognition under Pope Francis, and is pursuing a gradual alignment with international standards. Most recently, the ASIF was granted full autonomy and independence with a new statute promulgated by Pope Leo XIV.

The connection between the Bundesbank and the Vatican has a long history to date: back in 1994, then Bundesbank President Hans Tietmeyer was appointed a founding member of the Pontifical Academy of Social Sciences by Pope John Paul II. In the intervening years, the Vatican has considerably expanded its existing financial architecture, particularly with regard to financial supervision, including with the establishment of the ASIF as its own independent authority. Today, the main focus of Bundesbank and ASIF cooperation is on training initiatives. In this vein, some ASIF staff members have already visited the Bundesbank’s University of Applied Sciences in Hachenburg for training courses and an exchange of experience; in turn, several Bundesbank employees have been accepted on training courses for practical modules. The ASIF and the Deutsche Bundesbank intend to continue and expand these collaborative opportunities, as well as exploring further areas of cooperation in the future.