Vatican bank director, deputy resign over scandal

PanARMENIAN.Net - The director and deputy director of the Vatican bank have resigned following the arrest of a senior Italian cleric over corruption and fraud allegations.

Paolo Cipriani and Massimo Tulli offered to step down on Monday, July 1, "in the best interest of the institute and the Holy See'', the Vatican said, according to BBC News.

It comes three days after the arrest of Monsignor Nunzio Scarano.

The 61-year-old and two others are suspected of trying to move 20m euros ($26m) illegally.

Monsignor Scarano, a priest from southern Italy, worked for years as a senior accountant for a Vatican department known as Apsa (the Administration of the Patrimony of the Apostolic See).

He has been under investigation by Italian police for a series of suspicious transactions involving the recycling through the Vatican bank of a series of cheques described as church donations.

The two other men arrested on July 28 have been named as Giovanni Maria Zito, who is described as an Italian secret service agent, and Giovanni Carenzio, a financial broker.

Ernst von Freyberg, the current president of the bank, will serve as its interim director, taking over from Cipriani, a Vatican statement said.

A new position of chief risk officer would also be created to improve compliance with financial regulations.