Italy court lifts seizure on Vatican bank funds

(June 03, 2011) The Holy See on Wednesday welcomed an Italian court's decision to release the €23 million seized from its Institute for Religious Works 2010 as part of an investigation into alleged money laundering. The institute, commonly known as the Vatican Bank, was subjected to the money freeze last September when its two top officials were placed under investigation on suspicion that they failed to comply with Italian laws against money laundering. In an effort to ensure complete financial transparency, Pope Benedict XVI signed four new laws and established the Financial Information Authority, an autonomous and independent body with the task of preventing and countering money laundering or the financing of terrorism. A statement from the offices of Rome's attorney general noted the "important changes" that the Vatican has made "at the normative and institutional level." Jesuit Father Federico Lombardi, director of the Vatican press office, welcomed the release of the monies, saying it confirms the correctness with which the Vatican Bank wishes to operate and points to the Holy See’s serious commitment to uphold international standards. Known by it’s Italian acronym, I.O.R., the Vatican Bank was created in 1942 to manage accounts held by priests, cardinals and bishops as well as religious orders.