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Saturday, June 29, 2013

Vatican official held over $26m money laundering scheme


A Vatican official already under investigation for money laundering was arrested after Italian police said they caught him and two other men plotting a scheme that would bring in €20m in cash into Italy from Switzerland on a jet.

Prosecutors said Monsignor Nunzio Scarano claimed the money belonged to some friends, according to The Associated Press. Nunzio’s attorney, Silverio Sica, told AP that the Vatican official “was a middleman in the Swiss operation. Friends had asked him to intervene with a broker, Giovanni Carenzio, to return €20m they had given him to invest.”
The report quoted Sica as saying that Scarano persuaded Carenzio to return the money, and an Italian secret service agent, Giovanni Maria Zito, went to Switzerland to bring the cash back aboard an Italian government aircraft. Such a move would presumably prevent any reporting of the money coming into Italy.
“The operation failed because Carenzio reneged on the deal. Zito, nevertheless, demanded his €400,000 commission.
“Scarano paid him an initial €200,000 by check. But in a bid not to have the second instalment of the commission deposited, Scarano filed a report for a missing €200,000 check, even though he knew Zito had it,” Sica said.
The New York Times reports that Scarano had been suspended as an accountant for the Vatican bank, after prosecutors opened an investigation for money laundering.
“Only priests, religious, Catholic institutions, employees of Vatican City State and diplomats accredited to the Holy See are allowed to have accounts at the Vatican Bank, known as the Institute for Works of Religion, but rumours have long swirled about whether accounts were used as fronts for other interests, including organised crime and Italian politicians.
“In the past, the Italian prelates, who controlled the Vatican Bank, tended to see any inquiries into possible malfeasance as an attack on its sovereignty. Pope Francis and his predecessor, Benedict XVI, have tried to make the Vatican Bank more transparent.
“It was not immediately clear whether the Vatican was cooperating with Italian authorities or whether the arrests stemmed from several suspicious transactions – six in 2012 and seven in the first half of 2013 – that Vatican officials said they had flagged and brought to the attention of the Vatican’s own internal prosecutors.”

Source: Punch

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