Among all the questions one thing is clear: the job of keeping the Vatican and its officials out of financial mischief is far from done
of shops, offices and apartments at 60 Sloane Avenue was once a warehouse for Harrods of London. Now it is the focal point of the latest financial scandal to rock the Vatican—potentially the worst since Archbishop Paul Marcinkus, whose buccaneering presidency of the Vatican Bank in the 1970s and 1980s led it to deal with Masons and mobsters. At stake now, as then, is not just the probity of an individual, but the trustworthiness of the Holy See’s system of financial governance.
“It’s a nightmare,” says a senior Vatican official. “It risks undoing everything we have achieved in the past eight years.” In 2011 the Vatican agreed to inspection of its financial sector by Moneyval, Europe’s anti-money-laundering and anti-terrorist-financing watchdog. It has since created an institutional framework similar to those of more conventional states. Dodgy accounts have been closed at the Vatican Bank .
A Vatican source says that the prosecutors’ investigation centred on a chain of transactions to extract the Secretariat of State from the fund and give it full ownership of the London property, once more acting through an intermediary. According to this account, the Secretariat sought a loan from therefused to get involved, even though the overall operation had been remodelled at the behest of theto ensure compliance.
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