Vatican Calls Money Laundering Investigation A Misunderstanding

09.23.10 | FL News Team

(Vatican City)  --  The Vatican says a "misunderstanding" between banks caused Italian investigators to look into possible money laundering at the Institute for Religious Works, or IOR.  The Vatican outlined their side of the story in a letter that was sent to the "Financial Times" and journalists in Rome in a bid to protect the image of the IOR.  The letter says "the nature and aims of the transactions under investigation could have been clarified with great simplicity."  Bank officials claim no wrongdoing because they say the IOR was only transferring its own money between its own accounts.

On Tuesday, magistrates in Rome froze more than 30 million dollars of the bank's funds after launching an investigation involving two top IOR officials, President Ettore Gotti Tedeschi and Director General Paolo Cipriani.