Vatican Bank operation facilitates money laundering, officials said after an investigation of over three years, according to confidential documents cited by two Italian newspapers Sunday.
Institute for Religious Works (IOR, the Italian acronym for Istituto per le Opere di Religione) did not make sufficient checks to its customers and allowed account holders to transfer large sums for the benefit of others, according to the same sources. There is a high risk in the operation of IOR, which doesn’t accurately identify its customers and may be used as a screen to conceal illegal operations, said the investigators quoted by the Italian newspaper Corriere della Sera. They also mention that Italian banks have accepted transfers from IOR without checking the origin of the funds, which were subsequently transferred to other banks.
“IOR can easily become a vehicle for money laundering,” said investigators. They also contradicted IOR statements ensuring that all customers are religious congregations or clergy. The investigators said that there are also individuals who benefit from a privileged relationship with the Holy See and can make cash deposits or open accounts.
The investigation focuses on transfers worth €23 million performed in September 2010 by the Vatican Bank to the credit institution Credito Artigiano, with €3 million transferred to Banca del Fucino and €20 million to JP Morgan Frankfurt.
The transfer of funds was approved by Paolo Cipriani, back then the director of the IOR, and his deputy, Massimo Tulli. Both subsequently resigned and are under investigation. According to La Repubblica, the two high Vatican officials were also responsible for other transfers made to JP Morgan.
Pope Francis formed a commission of inquiry into the bank operations and states that he is preparing a comprehensive restructuring of the banking institution, one of the most secret in the world, at the center of financial scandals, within the broader reforms started by the Argentine Pope on the Vatican bureaucracy.
Vatican is trying to reform its finances to get on the “white list” of countries that comply with the rules of the fight against money laundering.
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