VATICAN CITY
The Economist
Oct 20th 2012
RENÉ BRÜLHART made his name as head of Liechtenstein’s financial-intelligence unit. Thanks to his diligence in rooting out financial crime over the past eight years, the tiny European principality, nestled between Switzerland and Austria, is no longer widely condemned as a haven for dirty money. This success, combined with his good looks, led one magazine to dub the 40-year-old Swiss lawyer the James Bond of the financial world.
His latest job might unnerve even 007: Mr Brülhart has been recruited to clean up the Vatican’s reputation. For years allegations of financial shenanigans have swirled around the Institute for Works of Religion, commonly known as the Vatican Bank. The bank is modest in size: as of last November it had just €6.3 billion ($8.3 billion) in assets, 33,400 accounts and 13 ATMs (for use by its own clients, which comprise religious organisations and individuals, Holy See lay employees and foreign countries’ embassies). But it also has features that make it alluring to money-launderers: an evaluation in July by Moneyval, the Council of Europe’s anti-money-laundering group, pointed to high volumes of cash transactions, global activities and limited information on many organisations operating in the Vatican.
In the latest scandal, its president, Ettore Gotti Tedeschi, was sacked in May. He and his former employer are now caught up in a money-laundering investigation led by Naples prosecutors. Mr Gotti Tedeschi has denied wrongdoing, saying the reason he was fired was that he got “too close to the truth” about the bank’s dealings. Only in December 2010 did Pope Benedict XVI issue a so-called Motu Proprio outlawing money-laundering and the financing of terrorism.
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