Vatican Bank in Money Laundering Probe

Vatican Bank Investigated for Money Laundering

 Ettore Gotti Tedeschi, head of the Vatican Bank, is under investigation for money laundering. After two suspicious transactions caught the attention of the Bank of Italy's financial intelligence unit, Italy's tax police moved in. 23 million euros ($30 million) deposited by Vatican Bank into Credito Artigianato were seized from the Vatican Bank's holdings.

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What is the Vatican Bank?

The Vatican Bank, formally called the Institute for Works of Religion (IOR), was created in 1942 by Pope Leo XII to manage the assets of bishops and cardinals. 

In 1982, the Vatican Bank was involved in another scandal: the IOR was involved in the collapse of Banco Ambrosiano in 1982. Archbishop Paul Marcinkus was indicted over the collapse, and Roberto Calvi was found murdered in London the same year.