Italian court upholds seizure of Vatican bank funds
Catholic World News - December 20, 2010
An Italian court has rejected a motion to release €23 million in funds that were seized in September from the Vatican bank.
The funds were frozen by Italian authorities in connection with a money-laundering investigation. Officials at the Vatican bank, the Institute for Religious Works (IOR), had insisted that the failure to provide proper documentation for the transfer of funds was a clerical error, which could quickly be explained. The Vatican had asked an Italian court to lift the freeze on the funds-- a highly significant move, insofar as officials of the Holy See were deliberately accepting the authority of the Italian judicial system over the IOR, which is not ordinarily subject to Italian law since it is an arm of the sovereign Vatican city-state.
But Judge Maria Teresa Covatta said that the purpose of the transactions in question was still unclear, and refused to lift the freeze on the funds. Italian banking authorities have charged that the IOR has conducted transactions for shadowy Italian figures who are seeking to avoid disclosure of their financial affairs.
An appeal from our founder, Dr. Jeffrey Mirus:
Dear reader: If you found the information on this page helpful in your pursuit of a better Catholic life, please support our work with a donation. Your donation will help us reach seven million Truth-seeking readers worldwide this year. Thank you!
Our Spring Challenge Grant
Progress toward our Spring Challenge Grant goal ($16,569 to go):
All comments are moderated. To lighten our editing burden, only current donors are allowed to Sound Off. If you are a donor, log in to see the comment form; otherwise please support our work, and Sound Off!