An edited version of this post by Roy Oppenheim was first published in US News and World Report’s Home Front Blog and is being redistributed on South Florida Law Blog with their permission.
Now that the smoke has cleared in Vatican City – both figuratively and literally – and the Catholic Church has new leadership, one of the many issues facing Pope Francis is the pressure being exerted on the Vatican to clean up its bank.
Steeped in decades of secrecy, the Vatican Bank has been under mounting pressure in recent years to clean up its act or face global financial instability.
On the one side are those seeking greater transparency, on the other are those seeking to preserve status quo and continue to operate under a blanket of secrecy.
The Vatican Bank and America’s banks have much in common – both have lost their way and now efforts are underway in Italy and in the U.S. to reign them in and clean them up.
The Vatican Bank was created in the 1940’s and was seen as a way to get money to Eastern Bloc countries to bring an end to Communism. Today, it’s said that the bank helps the Vatican operate in places such as Cuba. A noble beginning to be sure, but in recent years there have been allegations of money laundering and the disappearance of millions.
European agencies that monitor financial institutions are pushing for change much like lawmakers in the U.S.
In recent months, several lawmakers, including Massachusetts Senator Elizabeth Warren have sounded the alarm that tougher action against banks is needed.
