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Monday, September 28, 2015

More Italian tax evasion

Pope Francis inherited a Roman Catholic Church in a unique type of crisis, an institution that was widely perceived as out of touch with modernity and unable to live up to its own eternal values. But he was also burdened with a very different kind of problem: managing a financial institution immersed in money laundering and tax evasion charges and reluctant to change. 
Francis has been widely recognized for his efforts to move the church into the modern era, but his work on financial reforms at the Vatican bank, once called the "most secret bank in the world," hasn't gotten as much attention.
The Vatican bank's shadowy dealings have been well documented over the years, particularly the 1982 death of Roberto Calvi. Calvi, known as "God's Banker," was found hanging from Blackfriars Bridge in London, his pockets stuffed full of bricks and more than 10,000 British pounds in cash. Two weeks later, the bank where Calvi served as chairman and in which the Catholic Church was the largest shareholder, Banco Ambrosiano, collapsed. The bank was suspected of laundering money from Mafia drug trafficking. The Vatican, the Italian government said at the time, was the bank's "effective partner." The Church admitted "moral involvement" in the collapse and paid creditors $241 million.
The Vatican's financial troubles became very public again in September 2010, when Italian authorities seized a 23 million euro transfer out of the Vatican bank. An Italian bank rejected the Vatican bank's request to move the money because the Vatican bank would not provide basic information -- the reason for the transaction, and the identity of the sender and recipient -- that are required by financial regulators in order to detect money laundering and other illicit activities. The lack of transparency ended up triggering a minor banking crisis, prompting other European and international banks to refuse to do business with the Vatican bank. 

Someone should make a movie about this.

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