Pope decides Vatican bank will remain operative

April 07, 2014 - Pope Francis has approved recommendations for the future of the Vatican bank, saying it will continue operating, the Vatican said on Monday. The bank, officially called Institute for Works of Religion (IOR), has been beset by a series of scandals in past decades, including allegations of money-laundering, generating speculation whether the pontiff would close the institution. The bank's stated purpose is to manage funds for the Church’s religious orders, charitable institutions and Vatican employees and retirees. "The IOR will continue to serve with prudence and provide specialized financial services to the Catholic Church worldwide," a statement said. Pope Francis had approved a proposal on the future of the IOR presented by various commissions and by Australian Cardinal George Pell, head of a new Vatican department known as the Secretariat for the Economy. The Vatican said a "plan to ensure that the IOR can fulfil its mission as part of the new financial structures of Holy See" will be drawn up for the Pope, who has stressed that the bank be transparent. As before, the activities of the IOR will continue to fall under the regulatory supervision of AIF (Autorità di Informazione Finanziaria), the Holy See’s and Vatican’s own internal regulatory watchdog.
In the past year under the leadership of its German president, Ernst von Freyberg, the IOR has closed hundreds of accounts, instituted strict anti-money laundering regulations and launched several investigations into suspicious activities.