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Is the Obama Admin Really Attacking the Catholic Church By Placing the Vatican on a Financial Crimes List?

Mar. 13, 2012 12:01am Billy Hallowell

State Department Adds Vatican to Financial Crimes List | Catholic Church

The Obama administration’s ongoing fight with the Catholic Church over religious freedom and the now-infamous contraceptive mandate hasn’t shown any signs of simmering. But now, just weeks after the initial arguments reached a boiling point, a new development is causing some to wonder if the Obama administration is waging a full-scale assault on the religious institution. Why, you ask?

For the first time, the Vatican has found itself on the U.S. State Department’s list of potential money-launderers. While this is potentially inflammatory on the surface, digging into the facts and details provides a more balanced scope through which to view the designation. This new-found dishonor, once all of the details are considered, is nowhere near as problematic as some critics would contend.

Last Wednesday, the “2012 International Narcotics Control Strategy Report” was released to the public. The document lists 190 nations and classifies them in terms of “primary concern,” “of concern” and “monitored” (in order from most dangerous to least). The Vatican joins Poland, Egypt, Chile — 67 other countries — in being labeled as “of concern” (the middle category).

State Department Adds Vatican to Financial Crimes List | Catholic Church

Pope Benedict XVI (AP)

According to the State Department, the Vatican made the list because it is considered vulnerable to laundering and because it had recently put a program into place to prevent financial abuses. Clearly, there are issues of concern, but the Catholic Church is taking measures to address these elements.

“While the actual money-laundering problem in jurisdictions classified as ‘Jurisdictions of Concern’ is not as acute as in those considered to be of ‘Primary Concern,’ they too must undertake efforts to develop or enhance their anti-money laundering regimes,” the report reads.

“To be considered a jurisdiction of concern merely indicates that there is a vulnerability to a financial system by money launderers. With the large volumes of international currency that goes through the Holy See, it is a system that makes it vulnerable as a potential money-laundering center,”explained Susan Pittman of the State Department’s Bureau of International Narcotics and Law Enforcement.

The Vatican’s implemented regulations, which came into effect last year, would allow the body to follow international law and standards. The church is hoping to be included on the European Commission’s “white list,” which showcases the nations and bodies that follow strict regulations against laundering and fraud. As Reuters reports, a decision about whether the Vatican will be placed on this list is expected to come in June.

State Department Adds Vatican to Financial Crimes List | Catholic Church

So, while the Vatican is a potential hub for fraud and abuse, it is not being placed on a highly minored or “red alert” list. However, despite this middle-of-the-road categorization, it is important to note that there are definitive issues surrounding the Vatican’s finances. The Daily Mail reports:

The news [of the Holy See's addition to the State Department list] comes just weeks after a series of leaked documents from within the Vatican and which were dubbed ‘Vatileaks’, revealed allegations of corruption and money laundering within the Holy See and which forced officials into issuing a series of denials.

The documents said that despite Pope Benedict signing a new anti money laundering law to make it more difficult for illegal funds to be recycled through Vatican accounts, there was a massive loophole which made it impossible to take action against any offence committed before its introduction on 1 April 2011.

Prosecutors in Rome are currently investigating two transfers totalling 23 million Euros from the Vatican Bank, or the Institute of Religious Works to give it its proper name, to two smaller banks.

State Department Adds Vatican to Financial Crimes List | Catholic Church That being said, it doesn’t appear that the State Department’s actions were sinister. After all, the U.S. has listed itself, Germany, Italy and Russia in the most vulnerable category — an action that may seem extremely odd to observers. But the designation comes due to the size of each nation’s economy and banking systems. These large-scale operations can more easily allow for money laundering to take place. The State Department document describes this most serious category as follows:

Jurisdictions of Primary Concern are those that are identified, pursuant to INCSR reporting requirements, as ―major money laundering countries. A major money laundering country is defined by statute as one ―whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking. However, the complex nature of money laundering transactions today makes it difficult in many cases to distinguish the proceeds of narcotics trafficking from the proceeds of other serious crime.

At least one confidential Vatican source seems to see the addition as a positive move.

“Our aim is to make the ‘white list’ and we are happy that we have been put in the State Department’s less vulnerable category,” an unnamed official told Reuters.

Considering the Vatican’s past financial troubles, placing it on a moderate risk list doesn’t seem unreasonable. While the Obama administration certainly has had its violations on the religious freedom front, being careful to properly vett each allegation is immensely important.

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Comments (107)

mycomet123
Posted on March 13, 2012 at 9:55am
Well if the State Department put the Vatican on the list because they are “vulnerable to money laundering”. The GOVERNMENT should be on the top of the list because THEY ARE LAUNDERING MONEY!

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- Excal
  Posted on March 13, 2012 at 11:40am
  Comparing 23 million Euros to Wachovia’s billions shows the hypocrisy and thus the more likely underlying motive:
  
  http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs
  
  Report this comment
- lukerw
  Posted on March 13, 2012 at 1:01pm
  Funny… In Germany, the NAZIs used the same Attack… upon the Theologian Bonhoeffer, and other Church Leaders… to silence the opposition.
  
  HEIL Obama!
  
  Report this comment
- db321
  Posted on March 13, 2012 at 3:22pm
  Daniel 12:2 God promises that the day is coming when “many of those who sleep in the dust of the earth shall awake, some to everlasting life, and some to shame and everlasting contempt.”
  
  Hating God is a personal choice – using a Government to silence God is a huge mistake. I don’t think God is leaning over the Balconies of Heaven taking Maalox and worrying about what the DOJ or Obama is proposing to do to his Church. When the dust settles Holder, and Obama will be made a fool and the Church will still be standing.
  
  Report this comment
- sixtysix
  Posted on March 13, 2012 at 4:13pm
  Before they laundry it, they print it. Oboma had better leave the Catholic Church alone. Now, not only is the administration trying to deny Americans their freedom of religion, they want to attack Catholics the world over.
  
  Report this comment
LOJ
Posted on March 13, 2012 at 9:47am
Friends: These aren’t the actions of normal people, they are the actions of Demons and unclean spirits that persecute and try to destroy Good and Godly people!

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- Vickie Dhaene
  Posted on March 13, 2012 at 4:06pm
  I shout to God: STRIKE THEM AND TAKE THEM !!!
  
  Report this comment
HKS
Posted on March 13, 2012 at 9:40am
Of course they are, do Muslims attack Christians? Just doing what they do.

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mapgirl10
Posted on March 13, 2012 at 9:36am
I find all these attacks on Christ to be just another assault on us. Christ died for those to repent and turn to God. The church will survive in spite of all these evil doers. God survived all the evil the humans has cast against him and still forgives us. So Barry your time will come and it will be short according to Revelation.

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lynnissmart
Posted on March 13, 2012 at 9:20am
Everytime I think the pos adm couldn’t stoop any lower……I get sickened about how beneath the ground they have sunk…….

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dannyo
Posted on March 13, 2012 at 9:19am
a government big enough to give you anything you want is big enough to take it all away…just kinda sucks when the guy taking it away is a wolf in sheeps clothing and the gal taking it away is an angry black woman..really sucks..

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florida123
Posted on March 13, 2012 at 9:09am
Just love how this admninistration using “it doesnt really mean anything and we will never use it” as a way to explain their commie actions away! Oust Odumbo in 2012, the American Way of Life depends on it!!!!

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quiltgal
Posted on March 13, 2012 at 8:54am
I hope they put the unions on that list.

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- quiltgal
  Posted on March 13, 2012 at 8:57am
  And don’t forget colleges and universities.
  
  Report this comment
- Texas.7
  Posted on March 13, 2012 at 3:37pm
  Quilt Girl, how true about unions!!! How about the Tides Foundation and other liberal money-distribution groups?
  
  Our government has itself become a money launderer, as our tax dollars are increasingly handed to groups that we wouldn’t openly vote to support… I guess that one is more like out and out theft.
  
  Report this comment
Dismayed Veteran
Posted on March 13, 2012 at 8:51am
The headline should be read in every Catholic Church. Most Catholics place their religion above their union membership. I think Obama has succeeded in alienating a block of people who voted for him.

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SpankDaMonkey
Posted on March 13, 2012 at 7:17am
.
Until the Catholic Church recognizes Black Jesus(Obama) as it’s leader, I think this spat will continue…

Why does everything Black seem to be after your Religion, your Health or your Wallet?…..

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- 000degrees
  Posted on March 13, 2012 at 7:50am
  And I still see obama bumper stickers on one or two cars during Mass on Sunday……mind boggling…
  
  Report this comment
BrerRabbit
Posted on March 13, 2012 at 7:06am
Just another Muslim attack on Christainity. There are sure more to follow.

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aquablue
Posted on March 13, 2012 at 6:45am
it seems like an attack to me. kinda like using fluke as pawn. manipulating a situation to create how obama wants things to be.

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Mateytwo Barreett
Posted on March 13, 2012 at 6:41am
The Vatican made the list?! With this crew, EVERBODY is on a list. Look at it this way, at least the chyurch is recognized by this CINO!

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Stephen Markovich
Posted on March 13, 2012 at 5:27am
o can find himself in hell sooner than he thinks

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Micmac
Posted on March 13, 2012 at 3:42am
Actually the Vatican does launder monies for the Italian Mafia and has been for decades. This is common knowledge in Italy and there have books written on the subject where the authors have been insiders given identity changes within the US and have been subsequently murdered on US soil. The Vatican and the Italian Mafia have been in cohoots for decades. But that’s Italy and NoBama is using anything he has available to smeer the Catholic Church.

NoBama 2012

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- youdidthis
  Posted on March 13, 2012 at 5:20am
  vatican does alot of things.
  
  obo just moving along ag.21 and other plans.
  
  hmm, ter-ist, financial, physical,mental.
  
  did we not just pass ndaa , war powers and all the other
  we can seize terorororist bank accts?
  
  Report this comment
- by faith
  Posted on March 13, 2012 at 4:09pm
  Micmac
  
  Actually the Vatican does launder monies for the Italian Mafia and has been for decades. This is common knowledge in Italy and there have books written on the subject where the authors have been insiders given identity changes within the US and have been subsequently murdered on US soil.
  
  If this is true, then your next.
  
  Report this comment
texrubarts
Posted on March 13, 2012 at 3:32am
Obama wants to rule over the Vatican!!! Obama can go straight to
Never Never Land….. creep…

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Captain Crunch
Posted on March 13, 2012 at 3:05am
I think people are making a bigger deal out of this than is necessary. They are not accusing the Catholic Church of money laundering. Pick your battles wisely.

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- PaxInVeritate
  Posted on March 13, 2012 at 3:47am
  Agreed.
  
  Report this comment
- RonmeyPaulBotsrOdd
  Posted on March 13, 2012 at 4:50am
  Exactly! How about folks focus on the dictatorial power grabs this administration and DOJ are implementing versus wasting time on this and conspiracy nonsense.
  
  Report this comment
- kaydeebeau
  Posted on March 13, 2012 at 7:13am
  It is good to be skeptical of everything done by this admin. “Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them.” – Frederick Douglass
  
  Report this comment
- Bill Rowland
  Posted on March 13, 2012 at 8:07am
  Watch the other hand. This and the contraception whoop-te-do are merely distractions for something else. Just like the voter ID law suits are distractions for Chicago style voting.
  
  OMG
  
  Report this comment
- florida123
  Posted on March 13, 2012 at 9:11am
  I see so placing them on this criminal watch list has no meaning? Quit drinking the Kool-aide its deadly!
  
  Report this comment
- timworx
  Posted on March 13, 2012 at 6:51pm
  FLORIDA123 – Did you even read the article?
  “I see so placing them on this criminal watch list has no meaning? Quit drinking the Kool-aide its deadly!”
  
  This isn’t a criminal watch list. You’d know that, if you bothered to read the entire article. Unfortunately, it takes the Blaze too many paragraphs to get past the BS and to the actual truth.
  The list is related to vulnerability, which has more to do with their procedures/policies and the amount of money that runs through them.
  
  Report this comment
REPUB1
Posted on March 13, 2012 at 2:46am
on a Financial Crimes List ??? obamma, demoratic senators and staff, and dont forget the UNIONS should be at the top of the List? then the vatican……………………………

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- lukerw
  Posted on March 13, 2012 at 1:09pm
  What about… SOROS?
  
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TheObamanation
Posted on March 13, 2012 at 2:33am
Why does obama hate the Catholics so much ?

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- texrubarts
  Posted on March 13, 2012 at 3:26am
  Because Obama is Satan and he is afraid that the Pope will pour Holy Water on him and he will disappear!!! I say pour the Holy Water on him….. lol
  
  Report this comment
- Gonzo
  Posted on March 13, 2012 at 7:28am
  Because they are not following his Obamacare orders. They should wear this as a red badge of courage.
  
  Report this comment
- RJJinGadsden
  Posted on March 13, 2012 at 8:15am
  Hugo Chavez has his differences with the Catholic Church, but even he is not attacking the Church as 0bama is.
  
  Report this comment
enabetse
Posted on March 13, 2012 at 2:30am
Why the Obama Admin Really put the UNIONS on the Financial Crimes List? Are the UNIONS laundering money in USA? Which one make more sense? The VATICAN or THE UNIONS? BUT NO ONE WANTS TO MENTION THIS.

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mcsledge
Posted on March 13, 2012 at 2:27am
Does wasting $500 million dollars on a company that produced almost nothing, benefited a few buddies (known to have visited Obama on a number of occasions), and went bankrupt resulting in an almost complete loss of the 1/2 billion dollars count for a financial crime?

The Obama administration fits the proverbial saying of ‘the pot calling the kettle black’.

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- vtxphantom
  Posted on March 13, 2012 at 3:48am
  Think of it as a money laundering scheme. Large amounts of money are given to these “front” companies and the DNC or obama’s campaign get donations from these same companies to fund their re elections. It does not matter if they go out of business because the money has gone to where it was supposed to.
  
  Report this comment
REPUB1
Posted on March 13, 2012 at 2:23am
why dont they just go back to world war 2 and look into the vatican Black Market activities and see how they made money off the Jews and Natzi’s…..

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- AppleAnnie
  Posted on March 13, 2012 at 11:37am
  Prove it.
  
  Report this comment
mcsledge
Posted on March 13, 2012 at 2:21am
Do they plan on putting themselves on this list. Half of his cabinet are tax cheats in some measure.

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paperpushermj
Posted on March 13, 2012 at 2:11am
A Bridge to Far

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mharry860
Posted on March 13, 2012 at 2:07am
So he doesn’t want to be re-elected. Apparently he’s pocketed enough money to take his family back to Kenya, just kidding.

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- 1TrueOne55
  Posted on March 13, 2012 at 2:19am
  If after his last term as President, if he wants to live in Kenya and run for High Office that is his prerogative. At least he will be in a country that wants more money from the Gov’t since they can not aggree on a way forward to prosperity with Capitalism.
  
  Report this comment
- GBTVFan_Non_American_Overseas
  Posted on March 13, 2012 at 3:08am
  I think you are very wrong about this……there isn’t enough other people’s money for Michelle Antoinettes to pay her lavish way of life and meat’s appetite. Hussein desperate needs all the terms that he can get to calm her down….
  
  Report this comment
- RJJinGadsden
  Posted on March 13, 2012 at 8:19am
  Look up Michelle’s comments about his place of birth when he was running for the senate. She vocally made the point that it did not matter where he was born to be in the senate when it seemed rather common knowledge in Illinois where he was born.
  
  Report this comment

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