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By court order on the 9th of July, the Vatican Promoter of Justice has frozen funds at the IOR attributed to suspended Vatican employee Nunzio Scarano as part of an ongoing investigation by the Vatican judicial authorities. The investigation was triggered by several suspicious transaction reports filed with AIF and could be extended to additional individuals.
IOR commissioned an objective review by Promontory Financial Group of the facts and circumstances of the accounts in question and is fully cooperating with the Vatican Financial Intelligence Unit AIF and judicial authorities to bring full transparency in this matter. The IOR is currently undergoing an outside review by Promontory Financial Group of all client relationships and the anti-money-laundering procedures it has in place.
In parallel, the Institute is implementing appropriate improvements to its structures and procedures. This process was initiated in May 2013 and is expected to be largely concluded by the end of 2013. Over the past weeks, the IOR nominated a Chief Risk Officer at Directorate level with a specific brief to focus on compliance, and introduced measures to substantially strengthen the reporting system.
As President Ernst von Freyberg recently pointed out, the IOR is systematically identifying and will have zero tolerance for any activity, whether conducted by laity or clergy, that is illegal or outside the Statutes of the Institute.