Vatican Bank Granted Reprieve by Pope Francis after Series of Scandals
By John Hooper
The Vatican bank is to stay in business despite speculation Pope Francis might close down the scandal-plagued institution. After months of investigation and consultation, the Vatican announced the pope had opted for a reform plan instead. The bank, officially called the Institute for the Works of Religion (IOR), has as its core business the management of cash deposited by Catholic religious institutions and members of the clergy. But its offshore status has been central to a string of scandals and controversies. The statement said the IOR would continue to "serve with prudence". It added that strict regulatory supervision and improvements in compliance and transparency were critical for the institute's future. But it said Francis recognised "the importance of the IOR's mission for the good of the Catholic church, the Holy See and the Vatican city state". His predecessor, Pope Benedict, launched a cleanup of the bank before his resignation last year. One of his last acts as pontiff was to appoint a German financier, Ernst von Freyberg, as the IOR's president. Since then, thousands of accounts have been vetted – and several hundred closed – in a bid to comply with international standards. An IOR spokesman said the management's priority would be to screen clients by early summer, integrate the bank with other Vatican financial institutions and introduce operational improvements. Monsignor Nunzio Scarano, a former Vatican accountant, faces trial on charges of laundering millions of euros through the bank. The bank's former director and deputy director have been indicted in a separate case on charges of violating money-laundering regulations. Last year Pope Francis said last year closure of the bank was one of three options under consideration.
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