VATICAN CITY
This Week
By Carmel Lobello
Rene Bruelhart, the head of the Vatican’s new Financial Intelligence Authority, disclosed Wednesday that he had found six incidents of possible money laundering in the Vatican Bank from last year — marking the first step in what may be a new era of transparency for the scandal-stained institution.
The Vatican Bank, officially called the Institute for Religious Works (IOR), manages an estimated $5 billion in assets for religious orders and Catholic charities. A private entity, its inner workings have long been shrouded in secrecy. In 2012, following investigations of money laundering and probes into the behavior of the top brass, Forbes called the IOR “the most secret bank in the world.”
The bank was founded in 1942 to safeguard and administer funds for Catholic organizations around the world, and got into trouble at the height of the Cold War, “when the Catholic Church was consumed by the threat of the Soviet Union,” said TIME in a 2010 story about another Vatican probe. “In a sharply divided world, the Holy See found itself on the same side as the Mafia, whose Sicilian vote-buying operations propped up the Christian Democrats against the communists.”
Then, in 1982, when Italy’s second largest bank, Banco Ambrosiano, went bankrupt (allegedly due to mafia-related debt issues), the IOR was implicated as the bank’s main shareholder. When Banco Ambrosiano’s chairman, Roberto Calvi, was found hanging from London’s Blackfriar’s Bridge, his pockets stuffed with bricks and cash — a likely mafia murder that remains untried — the IOR’s reputation took a beating. “The Vatican has been trying to shed its image as a murky financial center since,” says the Financial Times.
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