Vatican bank agrees landmark tax treaty with Italian regulators

[hrmjustin]

Stephanie Kirchgaessner

The Vatican bank has been shrouded in mystery for decades, but a tax treaty agreed on Wednesday between the Holy See and Italy is a sign of changing times at an institution that is trying to shed its image as a haven for money laundering and tax avoidance.

The deal, which will require both sides to share financial and tax information, is part of a broader drive by Pope Francis to clean up the Vatican bank, or the Institute for Works of Religion (IOR) as it is formally known.

For years, the bank has been seen as a vehicle to help rich Italians evade taxes and other illicit activities that were far removed from its core mission – to provide banking services for the Catholic church and help its charity reach all corners of the world.

http://www.theguardian.com/world/2015/apr/01/vatican-bank-agrees-tax-treaty-italy