Institute for Religious Works is a bank which is dedicated to priest where he enjoys several privileges.
During the investigation of money laundering case which led to seizure of Euro 23 million ($30 million) in Vatican assets in september, the vatican bank came under harsh scrutiny by Italian policia.
Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital."
The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and Mafia.
The suspicion arouse after seeing two suspicious transactions, which took in 2009 and recently(2010), in which ignored bank requests to disclose where the money was headed.
- AP Inputs