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January 1, 2011 010110.01 Vatican Cracks Down on Financial Loopholes Selah Hennessy | London The Pope has signed into law new rules aimed at making the financial dealings of the Vatican Bank more transparent. The move comes as the bank is being investigated over money laundering claims. The Vatican is setting up a financial watchdog to monitor suspicious financial transactions. Its aim is to bring more oversight to finances at the Vatican Bank, along with all other departments at the Holy See. The Vatican has a special status as an Vatican spokesman Rev. independent state within Italy and up until Federico Lombardi speaks to the media about a decree now has been exempted from passed by the Vatican bank to comply with international international banking regulations. It had rules to fight money until the 31st of December, however, to laundering and terrorist financing, at the Vatican press bring its rules in line with the rest of hall, Dec 30, 2010 Europe. Speaking Thursday, Vatican spokesperson Father Federico Lombardi said the Vatican wants to make the system transparent so that criminals cant exploit the financial sector. These new laws have the finality to enforce the international system of controls to avoid money laundering and the financing of terrorism. The move comes only a few months after prosecutors in Rome launched a criminal investigation into alleged money laundering by the Vatican Banks director and his deputy. The Italian authorities seized 1 $30 million that the Vatican had deposited at a bank in Italy without identifying who was depositing the money or