Vatican Bank Directors Resign In Tax Scandal

July 9, 2013 Taxation in Vatican

VaticanVATICAN – The Vatican Bank has become embroiled in another money laundering scandal, after a senior employee(s) was found to be smuggling cash on behalf of clients.

Earlier last week the director of the Vatican Bank Paolo Cipriani and the deputy director of the bank Massimo Tulli resigned from their positions following allegations claiming that the institutions has been actively utilized in international money laundering schemes.

The resignations came only days following the arrest of Monsignor Nunzio Scarano, a senior accountant of the bank, who was caught trying to smuggle into Italy approximately EUR 20 million of funds belonging to a wealthy Swiss family.

The accountant was accused of attempting to bring the money into Italy in order to secretly deposit it in an account at the Vatican bank.

Prior to the attempted smuggling the the accountant was already under investigation by Italian police for a series of suspicious transactions which were being passed through the bank under the guise of church donations.

In response to the scandal and following the resignations, the bank has stated that a new position would be created in the bank to oversee enhanced compliance with financial regulations and international anti-money laundering standards.

Photo by European Parliament