Vatican launches probe into leaks

VATICAN CITY - The Vatican has launched an internal criminal investigation into the leaks of confidential documents that alleged corruption and financial mismanagement and exposed power struggles among Holy See officials, a Vatican prelate said Saturday.

In addition, Pope Benedict XVI himself has set up a commission to shed light on the so-called Vatileaks scandal because he was so distressed by the "disloyalty" shown by those who leaked the memos, Msgr. Angelo Becciu, undersecretary in the Vatican's Secretariat of State, told the Vatican newspaper L'Osservatore Romano.

The scandal has come at an exceedingly delicate time for the Vatican, which is seeking to win European approval for its efforts to ensure its finances are transparent and that its laws to fight money laundering and terror financing meet international norms.

Leaks of memos alleging corruption in the awarding of Vatican contracts, mismanagement in the Vatican's finances, infighting, and disputes over the Vatican's new anti-money-laundering efforts haven't helped the bid.

Just Friday, a team of inspectors from the Council of Europe wrapped up a three-day visit to the Holy See to review its compliance with norms required by the Financial Action Task Force, the Paris-based policy-making body that helps develop anti-money laundering and antiterror financing legislation.

It was the second such visit, part of an evaluation process that will culminate in July when the Vatican learns if it has complied with the FATF's 49 recommendations, which cover everything from customer due diligence in banking institutions to freezing and confiscating terrorist assets.