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Vatican: Police raid top offices in finance probe

Prosecutors seized "documents and electronic devices" on Tuesday, the Vatican said, from some of its highest offices as part of a finance probe.

Published: 2 October 2019 10:06 CEST

Vatican: Police raid top offices in finance probe

Photo: Depositphotos

“This morning activities were carried out to acquire documents and electronic devices from certain offices of the First Section of the Secretariat of State and the State Financial Information Authority,” a Vatican statement read.

The Vatican said the operation, authorised by prosecutor Gian Piero Milano and his deputy Alessandro Diddi, was “linked to the complaints presented at the beginning of last summer by the Institute for Works of Religion and the Office of the General Auditor, regarding financial transactions carried out over time.”

It said the heads of the departments involved had been informed ahead of the raid but gave no further details regarding the raid and the material found.

The Secretariat of State is the Catholic Church's governing body and most powerful office, which works closely with Pope Francis.

The Financial Information Authority (FIA) is an anti-money laundering authority designed to lend transparency to operations by the Institute of Religious Works (IOR),which acts as the Vatican Bank.

The IOR handles the accounts of Vatican employees as well as clerics, religious congregations and diplomats affiliated with the Holy See.

The institution has become embroiled in political and financial scandals repeatedly over the past few decades.

Two former heads of the IOR were handed prison terms in 2017 over “dubious transactions”, while an Italian businessman was last year found guilty of money laundering by a Vatican court

Last year, a former head of the Vatican bank also faced trial over money laundering and embezzlement connected with property deals. The trial is ongoing, and it is not known if yesterday's raid was connected to the case.

Such scandals prompted Vatican officials to pledge to clean up the bank, and some 5,000 bank accounts have been closed in recent years, first under Pope Benedict XVI and then under the current pontiff Pope Francis.

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Everything you need to know about closing a bank account in Italy

There are various reasons why you may want to close your Italian bank account.

Perhaps you’re packing up and leaving the country, or maybe you’ve just had enough of steep maintenance fees and are looking to switch to a different bank.

Whichever reason you may have to close your Italian bank account, doing so may not always be straightforward, especially if you’re not familiar with the ins and outs of the process.

How long does it take?

Bank accounts in Italy can be closed at any time and without prior notice.

It generally takes between six and 15 working days from the day you submit the request for the bank to close the account.

READ ALSO: The verdict: What are the best banks for foreigners in Italy?

However, under an EU directive adopted in March 2015, if you ask for your account to be transferred to a different bank, this will have to happen within 12 working days from the day of the request. If the bank in question fails to comply, you’ll automatically be entitled to compensation.

Is there a charge?

As of 2006, closing a bank account in Italy is entirely free, meaning you won’t face any closing fees or penalties.

Having said that, any outstanding maintenance fees or stamp duty (imposta di bollo – this only applies to accounts whose average balance exceeds €5,000) will be automatically deducted before the account is closed. The same goes for any unpaid fees related to extra services connected to the account, including credit card costs.

Is there anything I need to do before closing the account?

Before requesting that your account be closed, you’ll have to make sure you have a positive balance and stop or transfer to a different account any direct debits or recurring payments.

People walk past a branch of Italy's UniCredit bank in Milan

People walk past a branch of Italy’s UniCredit bank in Milan in August 2011. Photo by OLIVIER MORIN / AFP

You’ll also have to complete any pending banking operations, including transfers.

Do I have to go to the branch to cancel?

Though some smaller institutes may still specifically require clients to close an account in person, most major banks in Italy currently allow customers to close an account remotely by sending a registered letter (lettera raccomandata) to the relevant branch or a PEC message to the branch’s email address.

READ ALSO: Can I open a bank account in Italy as a non-resident?

In either case, the message should enclose your account details, a completed cancellation form (this can usually be found on the bank’s website) and all the required documentation, including a copy of a valid form of ID.

That said, while it may be possible to submit an account closure request without visiting your branch, you may still be asked to return any debit or credit cards, or, if applicable, your chequebook in person.

Should you not be able to do so (for instance, because you live abroad) you’ll have to get in touch with the bank to make different arrangements.

Things are generally far more straightforward when transferring an account to a different Italian bank as the new institute will handle the process for you (including the closure of the former account) and you may not be asked to visit the ‘old’ branch at all.

What about closing joint accounts?

If you have a joint account with ‘conjunct signature’ (firma congiunta) authorisation, the cancellation request must be signed by all named account holders.

READ ALSO: Which documents do I need to open an Italian bank account?

If you have a joint account with ‘disjunct signature’ (firma disgiunta) authorisation, the request can be signed by just one holder.

Can I close the account if I have a mortgage?

Under Italian law, banks cannot force customers to keep an account open for the purpose of managing other banking products, including a mortgage.

This means that you can close your account with the bank granting the mortgage, and keep making payments from a different account.

However, you’ll have to make the transfer prior to submitting your account closure request.

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