Money-Laundering Inquiry Touches Vatican Bank

By | September 22, 2010

This picture taken on March 3, 2010 showItalian monetary authorities said Tuesday that they had impounded $30 million from the Vatican bank and placed its top two officers under investigation in connection with a money-laundering inquiry. The announcement amounted to another potential storm confronting the papacy of Benedict XVI, who is struggling with the effects of a priestly abuse scandal.

In a statement, the Vatican expressed "perplexity and surprise" that the bank's chairman, Ettore Gotti Tedeschi, and its director general, Paolo Cipriani, had been placed under investigation. It added that it had the "greatest trust" in the two men and that it had been working for greater transparency in its finances, Rachel Donadio reports in The New York Times.

The investigation is the first into the Vatican bank since the early 1980s, when it was implicated in the collapse of an Italian bank whose chairman, nicknamed "God's banker," was mysteriously found dead, hanging from Blackfriars Bridge in London. …

via Money-Laundering Inquiry Touches Vatican Bank – NYTimes.com.

What is Money-Laundering?

Money laundering, at its simplest, is the act of making money that comes from Source A look like it comes from Source B. In practice, criminals are trying to disguise the origins of money obtained through illegal activities so it looks like it was obtained from legal sources. Otherwise, they can’t use the money because it would connect them to the criminal activity, and law-enforcement officials would seize it. – hsw

2 thoughts on “Money-Laundering Inquiry Touches Vatican Bank

  1. Rudy Arifin

    Follow The Money!
    Everyone knows the transactions as a result, less money from the perspective of those who are on-call clients, we concentrate on people who have the money. Let me look at this from a slightly different angle.
    Last week I had a conversation with a good seller. It is a very complex sale done. There were very high stakes for him and his company, follow it expects more than $ 10,000,000 in the first year, jobs and businesses. He has a good job so far, but the deal was blocked. He seemed to be in a position to win, but was struggling with moving the customer is. Had the right people, who had met all their needs better than anyone else and worked was a sound business justification. He works all the questions, but failed to resolve the agreement to break.
    He was making almost everything right (we can never say someone is doing advisers well, not only in our BSI).
    It was really a difficult situation, I asked all the standard questions about the competition, decision making, the value proposition, the business justification, the availability of funding, all I could think about. Had reasonable answers to everything, he had obviously done their homework and the work was really the business.

  2. Cheng

    What?
    Anyone want to hazard a guess as to what BSI stands for?
    I see now why bankers (and brokers) are able to talk civilisation to the brink of disaster.

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