BBC News, 1
October 2013
 |
| The headquarters of the Institute for Religious Works (IOR) the Vatican's bank |
Related
Stories
The
Vatican's bank has published its first annual report in its 125-year history as
part of an attempt to become more financially transparent.
The
Institute for Religious Works (IOR) has been dogged by accusations of
corruption.
The report
shows 2012 was a successful year for the bank, with net profits more than
quadrupling to 86.6m euros.
The bank
said this jump was mainly due to favourable trading results and an increase in
the value of bonds it held.
A majority
of this profit - 54.7m euros - was given to the Pope to carry out the Church's
mission around the world.
Its balance
sheet shows a total of 4.98bn euros in assets and 769m euros in equity funds.
The assets
were primarily held in bonds and money market accounts.
But the
report also reveals the IOR had 41.3m euros in gold, coins and other precious
metals, a stake in an Italian real estate company, and received two inheritance
properties worth around two million euros in 2012.
 |
| German banker Ernst von Freyberg currently heads up the Vatican Bank |
In the
report, President Ernst Von Freyberg, said the IOR needed to be a
well-respected member of the global financial community.
"The
annual report seeks to contribute to the transparency which the Catholic
Church, our customers, our correspondent banks, our authorities and the public
rightfully expect," he said.
Mr Von
Freyberg added that the bank had been "been engaged in a process of
far-reaching reform" to improve its organisation, compliance and
transparency.
The IOR has
been accused of money laundering and lack of due diligence in allowing
non-religious businessmen to hold accounts in what amounts to an international
offshore tax haven.
In August
Pope Francis stepped up the fight against corruption at the Vatican by
strengthening supervision of financial transactions at the bank.
He issued a
decree designed to combat money-laundering and prevent any financing of
terrorism.
The Pope
also recently set up a commission to investigate the bank and report back to
him personally.
In July the
Vatican froze the account of a senior cleric, Monsignor Nunzio Scarano,
suspected of involvement in money-laundering.
He and two
others were arrested by Italian police in June on suspicion of trying to move
20m euros ($26m; £17m) illegally.
At the time
the bank said it would have "zero tolerance for any activity, whether
conducted by laity or clergy, that is illegal or outside the Statutes of the
Institute".
Customers
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| Nunzio Scarano, who used to manage the Vatican's property holdings, was questioned by police |
This was
down from 21,000 the previous year, which the bank said was due mostly to it
closing inactive accounts.
It handles
the payroll for some 5,000 Vatican employees and funds for the central
administration of the Catholic Church.
It also
holds the accounts of cardinals, bishops, priests, nuns and religious orders
around the world.
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