Robert Hale, London - - ISBN 0 [there are some minor typographical errors in this transcription] On a bright May morning inwhile young Americans were dying on the Italian beachheads, Thomas Harrington McKittrick, American president of the Nazi-controlled Bank for International Settlements in Basle, Switzerland, arrived at his office to preside over a fourth annual meeting in time of war.
Worse still, Scarano who, together with the other men, has denied any wrongdoing had until only a month earlier been head of the accounting department at the Administration of the Patrimony of the Apostolic See, the treasury of the Vatican.
The arrest, and the headlines that screamed across the Italian press, was the latest shock for the Holy See. The year had already witnessed an emotional upheaval in the church with the resignation in February of the aged Pope Benedict XVI — the first time in years a pope had stepped down voluntarily.
But this new crisis demanded cold, hard resolve. Those worries also jolted a number of international financiers determined to press for reform.
His message to the men who filed into a room near Doma Santa Marta, the plain-fronted residence of Pope Francis, was respectful but direct.
The cardinals, known for long, contemplative consultations, were surprisingly receptive, said one of those informed. After a decade of paedophilia scandalsthe allegations of financial impropriety seemed set to unleash another storm of criticism and had to be addressed.
Outside auditors as well as financial risk consultants were already coming into the Vatican but the arrest of Scarano made the case for reform unavoidable. Audio Slideshow How the Vatican bank ended up as a financial penitent The Financial Times has investigated the extent of the mismanagement at the Vatican bank.
In this audio slideshow, find out how the scandal erupted and what has been done to help strengthen the bank. Untouchable havens such as Switzerland and Liechtenstein were forced to open their chocolate-box palaces to the probes of international regulators.
This year the power of the popes was challenged. The reforms now under way at the Vatican have come about in part because of the pressure brought to bear by banks such as Deutsche Bank, JPMorgan and UniCredit, all of which found themselves in the sights of regulators because of their business relationships with the Holy See.
As with other institutional clients, the banks gave the Vatican access to foreign financial markets. None wanted to speak on the record, citing sensitivities in both their banking and religious worlds.
All told the FT that they were speaking out in order to help the bank keep to its programme of reform. Senior executives from some correspondent banks had been questioned by regulators over the past two years and several had the same refrain about their dealings with the Vatican bank: There were surprisingly few checks and balances on cash flow — and far less documentation than expected.
The staff was small — people, largely Italian until this year, with cardinals acting as supervisors. Many of the staff seemed unversed in customer due diligence, according to some. Few loans are made; the bank holds deposits, transfers money and makes investments. Vatican insiders also revealed that the bank is awash in donations and cash, from Sunday collections and charitable giving.Facing the Financial Services Industry in companies (bank and nonbank) from engaging in UDAAP (unfair, deceptive, or abusive acts or practices) very broadly, remains a massive challenge for the financial services industry, as regulators continue to initiate civil and criminal.
05Aug03 - Bank watching in Basel All pictures on this page are by Richard Janssen I was on business-travel from city to city in Switzerland. After the work in Basel I . Challenge Faced by Regulator and Supervisor Authority INTRODUCTION Nowadays, most people are familiar with new technology development of electronic banking systems.
There are some truths that I strive to preach, for lack of a better word, in today's information-culture wars propagated in our corrupt mainstream media. Public Health England and NHS England are working to find thousands of people living with hep C, offering them new treatments that, in most cases, cure the illness.
A regulator should only fund other entities to deliver activities where they are directly related to the regulator’s objectives, such as information and education about how to comply with regulation, or research to inform the regulator’s priorities.