Vatican City, Nov 21, 2019 / 12:00 pm
The Holy See's relationship with a disreputable Swiss bank triggered an internal dispute between the Secretariat of State and Vatican financial authorities. At the center of the conflict was a multimillion-dollar line of credit used to fund a controversial investment in London property speculation.
Sources inside the Vatican's Prefecture for the Economy confirmed to CNA that a substantial part of the $200 million used to finance the Secretariat of State's purchase of a luxury development at 60 Sloane Avenue came through credit extended by BSI, a Swiss bank with a long track record of violating money-laundering and fraud safeguards in its dealings with sovereign wealth funds.
In 2016, BSI was the subject of a damning report by FINMA, the Swiss financial regulator, which concluded that the bank was in "serious breaches of the statutory due diligence requirements in relation to money laundering and serious violations of the principles of adequate risk management and appropriate organization."
The bank was absorbed by the EFG Group in 2017. The merger was approved by FINMA on the condition that it was "fully integrated and dissolved" within a year and that no BSI employee be given a senior management role in EFG. Had the merger not been approved by FINMA, BSI would have had its banking license revoked and the business shuttered.