Scottish Catholic Observer

A statement from the Vatican press office said Director Paolo Cipriani and Massimo Tulli, deputy director, offered their resignations ‘in the best interest of the institute and the Holy See.’ The bank has been working to revamp a marred image of secrecy and scandal with greater transparency.

The resignations came two days after the arrest of Mgr Nunzio Scarano, an accountant in the Administration of the Patrimony of the Holy See, the Vatican office that oversees Vatican property and investments. The administration is not part of the Vatican bank, although Mgr Scarano was believed to have at least one personal account at the bank, and Italian investigators claim they have wiretaps of him speaking to Mr Tulli on several occasions.

The Vatican’s statement said Ernst von Freyberg, the Vatican bank president, would assume the function of interim general director, effective immediately.

Mr Von Freyberg thanked Cipriani and Mr Tulli for their service to the bank, formally known as the Institute for the Works of Religion, or IOR.

“Since 2010, the IOR and its management have been working hard to bring structures and processes in line with international standards for anti-money laundering,” he said. “While we are grateful for what has been achieved, it is clear today that we need new leadership to increase the pace of this transformation process. Our progress is in no small measure due to the continued support from the governing bodies of the institute and its personnel.”

The Vatican said Rolando Marranci, formerly chief operating officer at a leading Italian bank in London, would serve as acting deputy director. It said Antonio Montaresi, who has served as chief risk and chief compliance officer with various banks in the US, would serve in the newly created position as acting chief risk officer, overseeing compliance and special projects.

The resignations came five days after the Vatican announced that Pope Francis had established a five-member commission to review the mission and activities of the Vatican bank, including if and how it fits in with the universal mission of the Church. The commission, which has already begun its work, is part of the Pope’s larger efforts to reform the central offices of the Church.