The Vatican has froze the funds registered at the IOR to Monsignor Nunzio Scarano, currently suspended from his duties, "in the framework of the ongoing investigation following reports of suspicious transactions". This was announced today by Father Federico Lombardi, director of the press office of the Holy See, specifying that "the investigations can also be extended to other people".
Lombardi also reiterated what Ernst von Freyberg, president of the Vatican Bank had already stated: “The IOR – he said – is following a clear line of systematic identification and zero tolerance against all those activities that are illegal or extraneous to the Statutes of the Institute, whether they are carried out by lay people or by ecclesiastics”.
Scarano, also under investigation by two Italian prosecutors, was arrested on 28 June on charges of having attempted to bring 20 million euros to Italy aboard a private jet to avoid declaring them to customs. The judge refused him house arrest.
At the moment, Lombardi explained, “the IOR is facing an examination by the Promontory Financial Group on all customer relations and anti-money laundering procedures in force. At the same time, the Institute is implementing appropriate measures to improve its structures and procedures. This process was initiated in May 2013 and is expected to be largely completed by the end of the year. In the past weeks, the IOR has appointed a chief risk officer at the management level, with the specific task of focusing on compliance, and has also introduced measures to substantially strengthen the reporting system.
