THE POPE’S TOP banker, Ettore Gotti Tedeschi, has been placed under investigation for suspected money laundering, and Italian police have seized €23m held by the Vatican in an Italian bank.

Police have confirmed that they have confiscated funds held by the Institute for Religious Works (IOR) – the Vatican’s bank – in an account at Credito Artigiano, an Italian bank, following suspicions raised by the Bank of Italy over two attempted transfers the Financial Times reports.

Tedeschi and another manager at Credito Artigiano are accused of violating legislation that requires banks to disclose information on financial operations.

Tedeschi was formally the head of operations at Bank Santander and moved to Credito Artigiano last year.

The Vatican have reportedly released a statement that expresses surprise at the investigation, asserts its commitment to financial transparency, and outlines full confidence in Tedeschi.

The Italian media has reported that the central bank became suspicious last Wednesday when it noticed two attempted transfers of Vatican funds, totalling €23m, from its account at Credito Artigiano to unnamed beneficiaries at JP Morgan Frankfurt and Banca del Fucino.