JPMorgan Chase Closes Vatican Bank Account

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Is the Obama Admin Really Attacking the Catholic Church
By Placing the Vatican on a Financial Crimes List?
by Billy Hallowell, Posted on March 13, 2012 at 12:01am
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The Obama administration's ongoing fight with the Catholic Church over religious freedom and the now-infamous contraceptive mandate hasn't shown any signs of simmering. But now, just weeks after the initial arguments reached a boiling point, a new development is causing some to wonder if the Obama administration is waging a full-scale assault on the religious institution. Why, you ask?



For the first time, the Vatican has found itself on the U.S. State Department's list of potential money-launderers. While this is potentially inflammatory on the surface, digging into the facts and details provides a more balanced scope through which to view the designation. This new-found dishonor, once all of the details are considered, is nowhere near as problematic as some critics would contend.

Last Wednesday, the "2012 International Narcotics Control Strategy Report"was released to the public. The document lists 190 nations and classifies them in terms of "primary concern," "of concern" and "monitored" (in order from most dangerous to least). The Vatican joins Poland, Egypt, Chile — 67 other countries — in being labeled as "of concern" (the middle category).

According to the State Department, the Vatican made the list because it is considered vulnerable to laundering and because it had recently put a program into place to prevent financial abuses. Clearly, there are issues of concern, but the Catholic Church is taking measures to address these elements.

"While the actual money-laundering problem in jurisdictions classified as 'Jurisdictions of Concern' is not as acute as in those considered to be of 'Primary Concern,' they too must undertake efforts to develop or enhance their anti-money laundering regimes," the report reads.

"To be considered a jurisdiction of concern merely indicates that there is a vulnerability to a financial system by money launderers. With the large volumes of international currency that goes through the Holy See, it is a system that makes it vulnerable as a potential money-laundering center," explained Susan Pittman of the State Department's Bureau of International Narcotics and Law Enforcement.

The Vatican's implemented regulations, which came into effect last year, would allow the body to follow international law and standards. The church is hoping to be included on the European Commission's "white list," which showcases the nations and bodies that follow strict regulations against laundering and fraud. As Reuters reports, a decision about whether the Vatican will be placed on this list is expected to come in June.

So, while the Vatican is a potential hub for fraud and abuse, it is not being placed on a highly minored or "red alert" list. However, despite this middle-of-the-road categorization, it is important to note that there are definitive issues surrounding the Vatican's finances. The Daily Mail reports:

    The news

[of the Holy See's addition to the State Department list] comes just weeks after a series of leaked documents from within the Vatican and which were dubbed 'Vatileaks', revealed allegations of corruption and money laundering within the Holy See and which forced officials into issuing a series of denials.

    The documents said that despite Pope Benedict signing a new anti money laundering law to make it more difficult for illegal funds to be recycled through Vatican accounts, there was a massive loophole which made it impossible to take action against any offence committed before its introduction on 1 April 2011.

    Prosecutors in Rome are currently investigating two transfers totalling 23 million Euros from the Vatican Bank, or the Institute of Religious Works to give it its proper name, to two smaller banks.
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That being said, it doesn't appear that the State Department's actions were sinister. After all, the U.S. has listed itself, Germany, Italy and Russia in the most vulnerable category — an action that may seem extremely odd to observers. But the designation comes due to the size of each nation's economy and banking systems. These large-scale operations can more easily allow for money laundering to take place. The State Department document describes this most serious category as follows:

    Jurisdictions of Primary Concern are those that are identified, pursuant to INCSR reporting requirements, as ―major money laundering countries. A major money laundering country is defined by statute as one ―whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking. However, the complex nature of money laundering transactions today makes it difficult in many cases to distinguish the proceeds of narcotics trafficking from the proceeds of other serious crime.

At least one confidential Vatican source seems to see the addition as a positive move.

"Our aim is to make the 'white list' and we are happy that we have been put in the State Department's less vulnerable category," an unnamed official told Reuters.

Considering the Vatican's past financial troubles, placing it on a moderate risk list doesn't seem unreasonable. While the Obama administration certainly has had its violations on the religious freedom front, being careful to properly vett each allegation is immensely important.

mycomet123
Posted on March 13, 2012 at 9:55am

Well if the State Department put the Vatican on the list because they are "vulnerable to money laundering". The GOVERNMENT should be on the top of the list because THEY ARE LAUNDERING MONEY!

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JPMorgan Chase Closes Vatican Bank Account
by Becket Adams, Posted on March 19, 2012 at 9:50pm
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JPMorgan Chase is shutting down the Vatican's bank account with its Milan branch due to a "lack of transparency," according to Reuters.



"The Vatican bank, also known as the Institute for Works of Religion (IOR), is having its account phased out and closed by March 30," Business Insider'sJulia La Roche reports, "because it apparently 'failed to provide sufficient information on money transfers.'"

Needless to say, this is a setback for the Holy See as it attempts to qualify for Europe's "white list" of financial institutions that meet all international regulatory standards on money-laundering and tax fraud.

"Italy's leading financial daily Il Sole 24 Ore reported at the weekend that JP Morgan Chase in Milan had told the IOR of the closing of its account in a letter on Feb. 15," Philip Pullella and Lisa Jucca of Reuters report. "The letter said the IOR's account in Italy's business capital would gradually be phased out starting on March 16 and closed on March 30."

Two things should be noted: first, this isn't the first time the Vatican has been suspected of engaging in financial fraud. Second, something should be said about the timing of the bank's decision.

As to the first point: The Vatican's finances have been under scrutiny for some time. Regulators are investigating €1.5 billion that passed through the Vatican's Milan account. Investigators refer to this account as a "sweeping facility," which means the account was emptied at the end of each day for an 18-months period and all funds were transferred to another IOR account in Germany, according to Il Sole 24 Ore.

Furthermore, the Vatican is still dealing with negative press it received in September, 2010, when investigators froze €23 million ($33 million) in funds in two Italian banks after opening an investigation into possible money-laundering scheme.

"The bank said it did nothing wrong and was just transferring funds between its own accounts. The money was released in June 2011 but Rome magistrates are continuing their probe," Reuters reports.

Adding to the growing list of Vatican woes is the "Vatileaks" scandal, in which documents, including letters to Pope Benedict, were published by Italian media outlets.

"Some of the leaked documents appear to show a conflict among top Vatican officials about just how transparent the bank should be about dealings that took place before it enacted its new laws," Reuters reports.

So JPMorgan is simply reacting to reasonable concerns over possible financial indiscretions, right?

This brings us to our second point, that is, the timing of the bank's decision. True, the aforementioned concerns over the IOR's finances have raised some eyebrows, but the Vatican has since responded.

For instance, last year the Vatican formally adopted internal laws to comply with international standards on financial crime and they now comply with the rules of the Paris-based Financial Action Task Force (FATF), according to Reuters.



Moreover, the IOR has created an internal Financial Information Authority (FIA) and has "committed to comply with international anti-money laundering standards and liaise with the group and law enforcement agencies," according to the report.

Which brings us back to the question: why did JPMorgan decide that now was the time to "phase out" the account? Investigations haven't presented any new information, the Vatican has enacted major reforms, and talk of money-laundering and tax fraud are still just allegations.

Perhaps JPMorgan chose to close the account after the U.S. State Department decided to include the Vatican on its "financial crimes" list.

"For the first time, the Vatican has found itself on the U.S. State Department's list of potential money-launderers," The Blaze's Billy Hallowell reported last week.

"According to the State Department, the Vatican made the list because it is considered vulnerable to laundering and because it had recently put a program into place to prevent financial abuses," he added.

But much like JPMorgan's decision to close the Milan account, some found the timing of the State Department's inclusion of the Vatican on its "financial crimes" list a little odd: "Clearly, there are issues of concern, but the Catholic Church is taking measures to address these elements."

Were either of these decisions aimed at the Holy See's finances really necessary?

Considering the fact that the Catholic Church is currently engaged in a culture war with the Obama administration (and the world at large), a few critics believe we are witnessing much more than a mere pursuit of "financial transparency."

Watch Glenn Beck explain his take on the recent developments (via GBTV):

welovetheUSA
Posted on March 19, 2012 at 11:13pm

JP Mogan is in Obama's back pocket...................Obama;s Agenda
A strong centralized government
An executive arm growing at the expense of the legislative and judicial arm
Control of banking, credit and security exchanges by the government
Underwriting of employment through armaments or by public works
Underwriting of Social Security by the government
Underwriting of food, housing and medical care by the government
Use of deficit spending to finance underwritings
Abandonment of gold in lieu of managed currency
Government control over trade, natural resources, transportation, agricultural production, organized labor unions, and youth corps-enlistments, to name a few
A youth and people dedicated to the ideology of government authorities
Heavy taxation of estates and incomes of the wealthy
State control over communications and propaganda
11 months..........VOTE
Report Post » welovetheUSA Log in to Reply

      Maji
      Posted on March 19, 2012 at 11:43pm

      Get ready this just starting!
      When they loose and go into lame duck session Obama
      is going into overdrive this fall.
      Thats why they're really finding ways around congress now!!
      It's out there and no one is saying it..this man(and his people) are
      going off the rails with corruption come NOV.5th 2012.
      No bad deed is going to be too big!!!
      Report Post » 

      pavepaws
      Posted on March 19, 2012 at 11:53pm

      Who needs JP Morgan?
      Report Post » 

      EndTheFedNOW
      Posted on March 20, 2012 at 12:00am

      The bankers need to be hung.
      Report Post » EndTheFedNOW 

      lukerw
      Posted on March 20, 2012 at 2:18am

      @END...
      There are Good Guys and Bad Guys in Banking... just alike in Every Profession. We need to identify the Naughty... and put Coal in their Stockings!
      Report Post » lukerw 

      lylejk
      Posted on March 20, 2012 at 2:29am

      Agree that this one smells fishy. Sounds like payback for the Catholic Church's stance on the pill. Emailed some Catholic friends and told them they may want to withdraw all investments in JP Morgan. I'm not catholic, but I use to do investments with them and they, well, let's just say lost half my $30K 401K money before I had no choice but to cash out since I was on survival mode then. I will never do business with this outfit ever again period. <!-- s:) --><!-- s:) -->
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