ITALY/VATICAN CITY
Reuters
Thu Jul 25, 2013
* Signing could be a matter of days -sources
* Italy wants access to more Vatican bank data
* More steps needed for normalisation of banking relations
* Italy-based banks de facto banned from dealing with IOR
By Lisa Jucca and Massimiliano Di Giorgio
ROME, July 25 (Reuters) – Italy and the Vatican are about to reach a deal allowing for the first time regular exchange of financial information between the two states to combat money laundering, several sources with direct knowledge of the situation told Reuters.
The Vatican is pushing to reform its bank, the Institute for Works of Religion (IOR), whose reputation has been tarnished by three decades of scandals. Such a pact would mark a first significant step towards normalising banking relations with Italy.
The deal will take the form of a memorandum of understanding between the Vatican’s Financial Information Authority (AIF) and its Italian equivalent, the Financial Intelligence Unit (UIF).
The Vatican has already signed similar pacts with other jurisdictions, notably the United States, but the deal with Italy would be significant due to the large number of Vatican transactions going through the country.
Pope Francis has made cleaning up the Holy See a goal of his papacy. However, two of the sources, who declined to be named, said the Vatican must prove its willingness to cooperate with Italian authorities before the Bank of Italy can lift a de facto ban on transactions between the IOR and Italian-based banks.
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