Berlusconi counts his blessings

By Guy Dinmore in Rome, published: February 18 2011

Vatican clarifies stance on condoms

By Guy Dinmore in Rome, Published: November 23 2010 

The Vatican has clarified Pope Benedict’s new stance on the use of condoms to help prevent the transmission of the Aids virus, explaining the pontiff believed that all those infected with the disease were morally justified in taking precautions to protect their partners.

Aids campaigners greeted what they saw as a significant shift in the Pope’s personal views that could lead to a landmark change in Roman Catholic policy.

Pope’s stance on condoms welcomed

by Guy Dinmore in Rome and Andrew Jack in London, published: November 20 2010

Aids activists welcomed the pope’s apparent softening of the Vatican’s opposition to the use of condoms but sex workers said his concession, directed at infected prostitutes, demonstrated both his prejudice and stark removal from reality.

In a book-long interview entitled Light of the World to be published on Tuesday, the 83-year-old German pontiff suggests that using condoms could be justified in some cases on moral grounds to prevent infecting others with the virus causing Aids, citing the example of a “male prostitute”.

Sicily probe adds to Vatican bank pressure

By Guy Dinmore in Rome, Published: November 3 2010

An investigation in Sicily into suspected fraud and money laundering involving a Roman Catholic priest and possibly the mafia has highlighted mounting pressure on the Vatican to bring its sometimes secretive banking operations in line with international standards.

Police made six arrests last week in connection with Father Orazio Bonaccorsi allegedly using an account in the name of the Vatican bank to help his father launder €250,000 ($350,000) he had obtained from European Union funding for an allegedly non-existent fish farm project.

FT podcast – the Vatican bank’s frozen assets

UK defence cuts, Middle East peace process and the Vatican bank’s frozen assets

Oct 20, 2010 – 11:00 pm

In this week’s show, we hear from diplomatic editor James Blitz on the UK defence cuts, Tobias Buck in Jerusalem on the latest in the Middle East peace process, Christian Oliver on the currency wars and get the latest on the Vatican bank’s Italian court case from Guy Dinmore, hosted by David Blair.

Court rejects Vatican bid to unfreeze funds

by Guy Dinmore in Rome, published: October 20 2010

An Italian court has rejected a bid by the Vatican bank to free €23m of its funds frozen by the Italian judiciary as part of an investigation into a suspected breach of money laundering regulations.

Vincenzo Scordamaglia, a lawyer representing the Institute of Religious Works (IOR), as the Vatican bank is formally known, said he had learnt from media reports on Tuesday that the court, the Tribunale del Riesame, had rejected the case he had filed this month. He said he would lodge an appeal once he had received formal notification.

Vatican bank goes to court over frozen funds

by Guy Dinmore in Rome, published: October 7 2010

The Vatican has taken what is believed to be the unprecedented step of resorting to an Italian court in an effort to free €23m ($32m) belonging to its bank that was frozen by the Italian authorities during an investigation into a suspected breach of anti-money laundering regulations.

Vincenzo Scordamaglia, a lawyer representing the Institute of Religious Works (IOR), as the Vatican bank is formally known, said he had filed a case with a Rome tribunal on Thursday to challenge the seizure of the bank’s funds. A first hearing is scheduled for Friday.

Vatican bankers quizzed over laundering

By Guy Dinmore in Rome

Published: September 30 2010

Rome magistrates leading an investigation into a suspected breach of money laundering regulations by the Vatican bank questioned its top two officials for several hours on Thursday for the first time since the probe was opened and €23m in Vatican funds were seized.

Leaving the judiciary complex in Rome after their meeting, Ettore Gotti Tedeschi, head of the Institute for Religious Works (IOR) as the Vatican bank is formally known, repeated to reporters the Vatican’s explanation that the events were the result of a “misunderstanding” which he intended to clarify.

The Vatican: A murky See

By Guy Dinmore in Rome, published: September 24 2010

After last week’s gruelling yet ultimately successful visit to the UK, arguably the most challenging mission of his reign – amid an exchange of accusations over child abuse scandals and secularism – Pope Benedict, at 83, could have been forgiven for seeking rest with his cats in the Vatican’s tranquil gardens upon his return.

Any repose was broken on Tuesday morning, however, when alarm began to mount in the nearby medieval bastion of Nicholas V, home of the city-state’s bank. News was emerging that Italy’s finance police had frozen €23m held by the Vatican in an account at an Italian bank, and that the Pope’s two most senior banking officials were under investigation for possible money-laundering.

Reacting with unusual speed, the Vatican issued forceful denials of the allegations. It expressed “perplexity and amazement” at the probe and full confidence in the Institute for Works of Religion (IOR), as its bank is known, as well as in Ettore Gotti Tedeschi, chairman, and Paolo Cipriani, director-general, the suspects under investigation.

Vatican secrecy blamed for banking dispute

By Guy Dinmore in Rome and Rachel Sanderson in Milan, published: September 23 2010

A dispute between the Vatican and Bank of Italy, which led to an inquiry into suspected money laundering by Pope Benedict’s senior bankers, stems from a clash of cultures rather than possibly nefarious tran­s­actions, say Italian banking and government sources.

The sources, who asked not to be identified, told the Financial Times on Thursday that they tended to agree with the Vatican’s insistence that the dispute resulted from a “misunderstanding” between its bank, the Institute of Religious Works (IOR), and Credito Artigiano, an Italian lender. Rome magistrates froze €23m ($31m) on Tuesday in an account held by IOR at Credito Artigiano after the central Bank of Italy raised concerns about two attempted transfers that did not comply with anti-money laundering rules by not identifying beneficiaries or the purpose of the transfer.

Ettore Gotti Tedeschi, chair­man of IOR, and Paolo Cipriani, director-general, were formally placed under investigation for possible money-laundering, which the Vatican strongly denies. It said the money, including €20m to buy German government bonds, was being transferred to accounts it held in two banks in Frankfurt and Rome.