Vatican says bank needs ‘corrective measures’

The Vatican’s financial watchdog agency said that “corrective measures” were necessary at the Holy See’s troubled bank to continue the path toward financial transparency and compliance with international anti-money laundering norms.

According to Financial Intelligence Authority Director Rene Bruelhart, a long-awaited investigation of the bank, known as the Institute for Religious Works, included looking into its practice of not disclosing the names of the true account holders in its transactions with Italian banks. He said that the main problems identified in the inspection concerned the bank’s procedures for identifying high-risk activities, and that more detail was necessary.

He said over the coming weeks, he would discuss a proposed action plan with bank managers “to take certain corrective measures to have a full implementation (of the Vatican’s anti-money-laundering law) in the IOR.”

The majority of the 202 new cases stemmed from transactions at the Vatican bank, which is reviewing each of its accounts to make sure it is clean and that the bank has complete information on the client.

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