Ior Continues the Process of Closing down Lay Clients' Bank Accounts

The Vatican Insider
December 18, 2013

http://vaticaninsider.lastampa.it/en/the-vatican/detail/articolo/ior-ior-ior-30713/



The Institute for the Works of Religion (IOR) is continuing the process of closing down the accounts of lay account holders, who do not fit into any of the five categories of clients the Vatican bank is legally allowed to have. The process, which began last July, is proceeding as scheduled and has not yet concluded. This is partly because not all of the letters sent to clients who are no longer allowed to have any relationship with the IOR (over a thousand of them) specify the same deadline for the closure of each respective bank account, ANSA reports.

 

“In July 2013, the IOR updated its policy in relation to the categories of clients which the Vatican bank can offer its services to.  These categories are: Catholic institutions, clergy, employees or former employees of the Vatican with salary and pension accounts, embassies and diplomats accredited to the Holy See,” an IOR spokesman told ANSA. This was a joint decision of the IOR’s supervisory board and the Commission of Cardinals and was published on the IOR website on 31 July. “Relations with clients that do not fit one of these categories, will cease,” the IOR informed.

 

The account closing down process “must not be confused with the interruption or suspension of relations with clients suspected of violating the anti-money laundering laws in place. This responsibility lies with the Vatican authorities that have been tasked with enforcing the law and supervision.”

 

Vatican sources say the accounts of those who fail to respond to the letter sent by the IOR and close their respective accounts, will in any case be closed down: the money will be paid into a common fund within the IOR and if the account holder contacts the Vatican bank within a set number of years, they will still only be able to withdraw a limited sum of money. The rest will be paid into a bank account in the person’s name, as long as this bank account is held in one of the countries of the “white list” of financially virtuous countries. The whole process will be overseen by the Vatican Financial Information Authority (FIA).

 

Strict restrictions also apply to the use and management of money held in accounts that need to be shut down, so as to avoid the currency laws of individuals countries from being exploited or violated.

 

The aim is to prevent the closing down of IOR bank accounts held by lay clients from leading to illicit activities in other countries, especially Italy.

 

Meanwhile, the review of the IOR’s 19 thousand bank accounts (5,200 belonging to Catholic institutions, 13,700 to individuals, for a total asset value of 7, 1 billion Euros) continues, with a detailed analysis of all operations, in order to ensure anti-money laundering regulations are fully respected.