HSBC Whistleblower Says Vatican Blocked Italian Probe Into IOR Bank

The Vatican blocked an Italian probe into its scandal-tainted bank, the Institute for Religious Works (IOR), the former HSBC employee who disclosed information on thousands of Swiss bank account holders said Wednesday.

Franco-Italian computer specialist Herve Falciani gained access to confidential data from 2006-2007 and passed it on to French authorities in the hope of exposing tax cheats hiding behind Swiss banking secrecy laws.

"Italian investigations on the IOR were blocked by the Vatican: Switzerland was ready to cooperate, but the Vatican placed its veto," Falciani said, launching a book in Rome, as quoted by the ANSA news agency.

Over the decades, the IOR has been involved in a long list of financial scandals, allegedly offering a safe haven for the funds of Italian mobsters, politicians and entrepreneurs, going beyond its prime remit of assisting worldwide church operations.

Under Pope Francis and his predecessor Benedict XVI, a clean-up process got underway. Under new management, the IOR has screened its client base and closed thousands of accounts, and is in the process of being downsized significantly.

Falciani - who has fled from Switzerland and has been indicted there for breaking bank secrecy laws, and industrial espionage - said he hoped that his revelations could encourage Francis to continue with the process.

He said he was prepared to return to Switzerland to testify in his trial as long as he would be given assurances that he would not face immediate arrest, "to explain, to show that mistakes were made and to give a contribution."