Pope Francis passed away on Monday, leaving a significant legacy of reform at the Vatican Bank. Originally established in 1942 to manage finances for clergy and church organizations, the bank had a history of scandals, secrecy, and unfortunate financial deals. Under Pope Francis’s leadership, transparency improved, and financial oversight became more centralized.
Despite being characterized by some as an anti-capitalist, one of Pope Francis’s major achievements was his handling of the Vatican Bank, which had been valued at $6 billion. Since becoming pope in 2013, Francis aimed to reform the bank, which had faced allegations of money laundering, corruption, and Mafia connections.
During his time as pope, Francis, born Jorge Mario Bergoglio in Argentina, initiated reforms that enhanced transparency and tackled corruption within the bank. Building on efforts that began under his predecessor, Pope Benedict XVI, the bank started issuing annual reports in 2013, detailing profits, operational costs, and philanthropic contributions.
In 2014, Francis restructured the bank’s management, reducing the influence of clergy members in financial matters and appointing Jean-Baptiste de Franssu—a French financier formerly CEO of Invesco Europe—as head of the Vatican Bank. De Franssu has served as the bank’s president since then.
Pope Francis further aimed to comply with financial regulations by implementing stricter external oversight and closed numerous accounts in 2014 to ensure the bank’s adherence to international standards.
Seeking stronger control over the Holy See, Francis instructed all Vatican departments to close independent investment accounts and transfer funds to the Vatican Bank, diminishing nonexpert clergy’s financial control and enhancing regulatory oversight.
Francis’s actions were in response to several past scandals, such as the collapse of Italy’s Banco Ambrosiano, to which the Vatican Bank was financially connected. The bank’s president, Roberto Calvi, was found dead under suspicious circumstances, possessing cash and bricks; he had been accused of embezzling funds for the Mafia. Calvi was often referred to as “God’s banker” due to his connections to the Vatican.
Additionally, Michele Sindona, a financial advisor to Pope Paul VI, had Mafia links and led the Vatican into failed investments, including the collapse of Franklin National Bank. Sindona died at 65 from cyanide poisoning while serving a 25-year sentence for fraud.
Despite Pope Francis’s efforts, the Catholic Church continued to face scandals. In 2022, two former Vatican Bank directors were convicted of malfeasance, and in 2023, a cardinal received a five-and-a-half-year prison sentence for embezzlement.
This report was initially published on Fortune.com.
