VATICAN CITY
Bloomberg Businessweek
By Sonia Sirletti and Chiara Vasarri October 01, 2013
The Vatican bank disclosed its annual report for the first time in the institute’s history as it seeks to improve financial transparency after several corruption scandals.
The bank, formally called the Institute for Works of Religion, or IOR, expects 2013 to be marked by extraordinary expenses “for the ongoing reform and remediation process”and the effects of rising interest rates, according to a statement. The bank earlier this year reported that 2012 profit more than quadrupled to 86.6 million euros ($117 million).
A review of all customer relationships and procedures to prevent money-laundering is under way, the bank said in the statement posted on its website. IOR will shut down about 900 accounts, including all of those held by foreign embassies, Corriere della Sera reported today without saying how it got the information. The decision was taken after viewing large cash transactions by diplomatic missions of Iran, Iraq and Indonesia, according to the newspaper.
“The remediation efforts and the introduction of appropriate regulation in the institute apply independently of the nature of the clients,” Max Hohenberg, a spokesman for the IOR, said by phone. “It doesn’t matter whether they are employees, cardinals or ambassadors.”
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