Vatican bank is closing its foreign branches

Scandal hits close to home.

The Vatican is set to reform its bank by closing all its accounts in its foreign embassies.

After Vatican missions in Indonesia, Iran and Iraq made withdrawals from the accounts of up to €500,000 at a time under disconcertingly vague pretences such as "personnel" and "refurbishment", a Vatican watchdog has suggesting closing all such accounts.

It’s good news for the religious to see God taking an interest in fiscal prudence. The need for better banking standards now has a whole new mandate: that of the kingdom of heaven. For those less pious it’s refreshing to see one of the world’s most arcane institutions making a stand against a less than glorious history of secretive banking.

The Institute for Religious Works, as the bank is known, holds about €7.1bn in assets under its management and has previously been beset by controversy. As Reuters reported earlier this year, Ernst von Freyberg, a German lawyer hired in February to run the IOR, told colleagues that embassy accounts were potentially dangerous, and that he wanted to close them. The Vatican secretariat stepped in and quashed the investigation for fear of damaging diplomatic relations.

In contrast with such desperate measures, this news shows how being open and honest is in everyone’s interests. It’s perhaps no surprise a bank with multiple international branches and which is beyond state law is a potential target for money laundering and other illicit finances. With 19,000 account holders in states considered high risk by many international authorities, the Holy See’s private bank is an apt vehicle for forbidden financial fruits.

But in standing up to the traditionally intransigent institutions encased inside St Peter’s, Pope Francis can send a message far beyond Rome’s hallowed walls.

"If [Pope Francis] pulls off a restructuring of the IOR and gives it real oversight and transparency, it would go a long way towards convincing people that he's serious about reform," said Vatican analyst, John Thavis, to Reuters.

Von Freyberg is keen to emphasise how transparent and compliant the bank is becoming and crucially that it’s clearly in its best interests. Speaking to Vatican Radio he said those reading the latest report would "see a rather conservatively managed financial institution safeguarding assets, investing in very conservative investments like government bonds and bank deposits.

And you will see an institution highly capitalised. At the end of last year our equity ratio was 15 per cent, which is way above comparable financial institutions would have."

Encouraging responsible banking and setting an example proves fiscal cleanliness really is next to godliness.

Alex Matchett is a writer for Spear's

This piece first appeared on Spear's Magazine

Photograph: Getty Images

This is a story from the team at Spears magazine.

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Scottish voters don't want hard Brexit - and they have a say in the future too

Leaving the single market is predicted to cost Scottish workers £2,000 a year,

After months of dithering, delaying and little more than scribbled notes in Downing Street we now know what Theresa May’s vision for a hard Brexit looks like. It is the clearest sign yet of just how far the Tories are willing to go to ignore the democratic will of the people of Scotland.  
 
The Tories want to take Scotland out of the single market - a market eight times bigger than the UK’s alone - which will cost Scotland 80,000 jobs and cut wages by £2,000 a year, according to the Fraser of Allander Institute.
 
And losing our place in the single market will not only affect Scotland's jobs but future investment too.
 
For example, retaining membership of, and tariff-free access to, the single market is crucial to sustainability and growth in Scotland’s rural economy.  Reverting to World Trade Organisation terms would open sections of our agricultural sector, such as cattle and sheep, up to significant risk. This is because we produce at prices above the world market price but are protected by the EU customs area.
 
The SNP raised the future of Scotland’s rural economy in the House of Commons yesterday as part of our Opposition Day Debate - not opposition for opposition’s sake, as the Prime Minister might say, but holding the UK Government to account on behalf of people living in Scotland.
 
The Prime Minister promised to share the UK Government’s Brexit proposals with Parliament so that MPs would have an opportunity to examine and debate them. But apparently we are to make do with reading about her 12-point plan in the national press.  This is unacceptable. Theresa May must ensure MPs have sufficient time to properly scrutinise these proposals.
 
It is welcome that Parliament will have a vote on the final Brexit dea,l but the Prime Minister has failed to provide clarity on how the voices of the devolved administrations will be represented in that vote.  To deny the elected representatives of the devolved nations a vote on the proposals, while giving one to the hundreds of unelected Lords and Ladies, highlights even further the democratic deficit Scotland faces at Westminster.  
 
The Scottish government is the only government to the UK to publish a comprehensive plan to keep Scotland in the single market - even if the rest of the UK leaves.
 
While the Prime Minister said she is willing to cooperate with devolved administrations, if she is arbitrarily ruling out membership of the single market, she is ignoring a key Scottish government priority.  Hardly the respect you might expect Scotland as an “equal partner” to receive. 
 
Scotland did not vote for these proposals - the UK government is playing to the tune of the hard-right of the Tory party, and it is no surprise to see that yesterday’s speech has delighted those on the far-right.
 
If the Tories insist on imposing a hard Brexit and refuse to listen to Scotland’s clear wishes, then the people of Scotland have the right to consider what sort of future they want.
 
SNP MPs will ensure that Scotland’s voice is heard at Westminster and do everything in our power to ensure that Scotland is protected from the Tory hard Brexit. 

 

Angus Robertson is the SNP MP for Moray, the SNP depute leader and Westminster group leader.