"The IOR does not receive or invest money from Russia," read a statement by the Institute for Religious Works, using the Italian acronym IOR for the institution more commonly referred to as the Vatican Bank. "The IOR strongly rejects the allegations of the Councillor, according to whom the IOR would be investing Russian money."

The Vatican Bank insisted the institute only provides financial services to Catholic organisations and that it is held to the highest possible international standards.

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Officially known as the Institute for Religious Works or IOR, the bank, once a symbol of financial misconduct, has successfully rebranded itself as a pillar of transparency at the Vatican.

Pope Francis and his predecessor, the late Pope Benedict XVI, implemented significant changes to enhance transparency and efficiency in the Catholic institution's financial dealings.

Pope Francis consolidated all financial assets of the Holy See within the Institute for Religious Works in August 2022, promoting centralisation.

The report emphasised that the Institute for Religious Works is deeply committed to managing assets in line with the principles of the Catholic faith.

It declared, "The high standards achieved by the IOR in asset management amply confirm the choice made."

Furthermore, the statement added that the bank's core capital and liquidity contribute to its status as "one of the strongest financial institutions in the world."

Conviction of former Vatican bank president

Over the past few decades, the Vatican has made concerted efforts to restore the credibility of its financial institution, which aims primarily to securely distribute the church's wealth for its numerous global missions.

However, it has faced challenges, including the conviction of the former president of the Vatican bank, Angelo Caloia, for money laundering related to an obscure real estate investment.

In 2019, new leadership at the Vatican bank flagged a suspicious loan request of 150 million euros for a real estate investment in London's Chelsea district.

This transaction now forms the core of a Vatican trial involving ten individuals, including Vatican officials, who face money laundering and corruption charges.

Meanwhile, in a recent interview with Vatican media, Monsignor Battista Ricca, a prelate at the Vatican bank, acknowledged that the institute is an integral part of a larger entity—the Holy See.

"This realisation has greatly reduced the idea of acting independently and of being able to operate free from any rule. Also, the spectre of the genuine disasters committed in the past is always there to keep us on the alert," Msgr Ricca added.

Sources

Religion News

National Catholic Reporter

CathNews New Zealand

The Institute for Religious Works (commonly known as the Vatican bank) issued its annual report on Tuesday.

The report says the bank earned 31.9 million euros in profits last year.

This is about 7 million euros down from its 36 million euro-profit in 2016.

The profits are returned to the Holy See.

The report also shows a small decrease in assets. These are presently valued at 5.27 billion euros compared to 5.69 billion last year.

Cardinal Santos Abril y Castello, who heads the commission of cardinals overseeing the bank, says Pope Francis has made clear profits must not trump ethics.

The bank's investment strategy and recent decisions have therefore seen it reject proposed settlements and take legal action against former bank executives in Malta and the Vatican.

A major objective the bank achieved last year involved selecting investments that are consistent with Catholic ethics such as the "respect of human life, creation and human dignity."

Investments seeking to contribute to the "care of the common home," as expressed in Pope Francis's environmental encyclical Laudato Si', were also favoured.

In addition, corporate social responsibility and the role of companies in creating a sustainable future were the two fundamental features the bank looks for in choosing investments.

This led the bank to invest in projects that promote the development of poorer countries and are in line with the realisation of a sustainable future for future generations.

Individuals holding accounts at the bank must be Vatican employees, retirees or diplomats accredited to the Holy See.

Bishops' conferences, dioceses, religious orders and other official Catholic works also may have accounts.

The bank served approximately 15,000 clients with $6.25 billion in assets.

Source

• Crux Now
• NZ Herald
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