The Vatican is facing allegations it used a "skeleton key for money laundering"…using tools that can edit international bank account numbers (IBANs) in transfers in the international SWIFT system
https://www.politico.eu/article/vatican-financial-obscure-transactions-claims-bank-transfers-money-laundering/
AUGUST 11, 2025 4:34 AM CET BY BEN MUNSTER
The Vatican is facing allegations it used a "skeleton key for money laundering" by illegally manipulating bank transfers.
The City-State's former top financial cop ― Libero Milone, who was forced out in 2017 ― has claimed that its payroll agency was able to alter the names and account numbers on transactions after they were made, masking the identity of recipients and senders.
The implication would be enormous because it would have made it possible for Vatican officials to wire funds to private clients without revealing who they were, possibly enabling unlimited money laundering and violating the most basic anti-fraud rules.
The Pillar, a Catholic website, followed up with a series of articles signaling that Milone was sitting on a pile of potentially explosive material on practices uncovered during his time at the Vatican and was considering whether to deploy it to bolster his case.
Describing the IBAN editing tool as a "skeleton key for money laundering," The Pillar said that if proven, "the Vatican would likely end up on an international financial black list of the darkest kind, frozen out of the international banking system, meaning no money could come in or out of the City-State except in literal, physical cash."
https://www.pillarcatholic.com/p/vatican-court-rejects-auditors-wrongful-176 (July 2025)
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“I have a piece of paper which says that they can change the transactions — they can change the name — at any time,” Milone said in response to a question by POLITICO. He also intimated that he had further damaging evidence of malpractice in the City-State but again refused to say what, insisting that he didn't want to draw attention to himself. “I'm not trying to blackmail anyone,” he told reporters.
Milone said he first learned of the tool when he was asked to look into it by Cardinal George Pell, an Australian cleric appointed under the same transparency drive. Pell was forced to return to his native country in 2017 to face child abuse allegations, for which he was later cleared. He died in 2023.
In a letter addressed to Milone and dated 2016, a copy of which The Pillar shared with POLITICO, Pell said he had been "alerted" to a request from APSA, the Vatican's payroll agency, "to amend the controls in the SWIFT system,” an action he described as “potentially … illegal."
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