Vatican reaffirms complete transparency in financial transactions
Below the full text of a letter from the Vatican press office director Fr. Federico
Lomabrdi, sent to the Financial Times, regarding the recent investigation of the Institute
of Religious Works (IOR) by Rome’s Procurators Office: Dear Editor, Yesterday
the IOR (Institute of Religious Works) returned to international media attention in
the wake of a surprise investigation by the Procurator's Office in Rome. Given
that the activities of the IOR take place at an international level, and that
its President is a well respected figure, well-known in the world of international
finance, it is appropriate that I, as the head of the Holy See’s Press Office, should
seek to clarify matters in order to avoid the spread of inaccurate information and
to ensure that no damage is caused to the activities of the Institute or the good
name of its managers. The IOR is not a bank in the normal definition of the term.
It is an Institute that administers the assets of Catholic institutions; institutions
whose goal is to further a religious and charitable apostolate at an international
level. The IOR is located within the territory of Vatican City State; in other words,
beyond the jurisdiction and surveillance of the various national banks. Its particular
status means that its position in the system and the regulations of international
finance requires a series of agreements in order to establish the procedures necessary
for the Holy See to be included in the White List – this is especially true in light
of the new norms laid down by the European Union to combat terrorism and money laundering. From
the day of his appointment, and in accordance with the specific mandate he received
from the highest Vatican authorities and from the IOR Inspection Committee, President
Gotti Tedeschi has been working with great commitment to ensure the absolute transparency
of the IOR's activities, and their compliance for the norms and procedures which will
allow the Holy See to be included in the White List. To this end, intense and fruitful
contacts are ongoing with the Bank of Italy, the European Union and with the competent
international bodies: OECD and GAFI. It is for this reason that the Vatican Secretariat
of State, in the official communiqué it released on Tuesday, expressed its perplexity
and amazement at this investigation by the Procurator's Office in Rome, which has
come at a time in which this commitment is being clearly shown and these contacts
are being made in order to reach lasting solutions as soon as possible. The nature
and aims of the transactions under investigation could have been clarified with great
simplicity, being cash transactions the beneficiary of which is the Institute itself,
on accounts it holds at other credit institutions. The current problem was caused
by a misunderstanding (now being examined) between the IOR and the bank which received
the transfer order. Thus the Holy See reiterates its complete confidence in the
managers of the IOR, and its desire for complete transparency in the financial operations
the Institute undertakes, in accordance with the procedures and norms required today
to ensure the security and transparency of transactions in the field of international
finance.
Fr. Federico Lombardi Director Press Office of the Holy See