Catholic Bank leader removed from office by Vatican officials

by AJP Posted : May 26, 2012, 12:13Updated : May 26, 2012, 12:13
The director of the Vatican Bank, Ettore Gotti Tedeschi, has been removed from his post for dereliction of duty, the Vatican says. The bank‘s board of directors unanimously passed a no-confidence vote in Gotti Tedeschi, a statement said.

It said he had failed “to carry out duties of primary importance”, but it did not elaborate. In 2010 Italian police launched an investigation against Gotti Tedeschi as part of a money-laundering inquiry. Members of the board believed Tedeschi’s dismissal was needed to “maintain the vitality of the bank”, the Vatican statement said.

The board will now look for a new director to restore relations with the international financial community, “based on mutual respect for accepted international banking standards”. Gotti Tedeschi declined to comment on his dismissal. He told journalists: “I‘d rather say nothing; otherwise I’d say ugly things.”

The moves comes as Moneyval, the Council of Europe body tasked with counteracting money laundering, prepares to rule at the beginning of July on whether the Vatican meets international standards on financial transactions.

Memos leaked earlier this year suggest there are serious differences among Vatican officials over how far to go in ensuring financial transparency, according to media reports.

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