VATICAN CITY (AP) — The Vatican's financial watchdog agency is strongly denying allegations of wrongdoing by Vatican prosecutors who ordered an unprecedented raid on its offices and seizure of confidential documents.

The board of the Financial Information Authority, which works with financial intelligence units around the world in the fight against money laundering, insisted Wednesday its activities were entirely proper.

A statement said an internal investigation concluded that neither the AIF's suspended director nor anyone else at the agency "improperly exercised his authority or engaged in any other wrongdoing."

Vatican gendarmes searched AIF headquarters on Oct. 1 in connection with an investigation into a London real estate venture that went sour.

The raid sparked alarm internationally, given that other countries will likely to be unwilling to share sensitive information now with the Holy See.