Crisis of faith over Vatican cash machines

(Financial Times) -- A stand-off between two titans of finance, the Bank of Italy and the Vatican, has forced tourists to abandon their visits to the Sistine Chapel -- unless they have cash in their pockets.

Italy's central bank has blocked all electronic payments through cash machines and by credit cards in Vatican City following the world's smallest state's failure to fully comply with international anti-money laundering rules.

The incident raises further questions about the transparency of the Vatican's finances. Its efforts to adopt international standards in combating money laundering and terrorist financing were given a mixed assessment last July in a study of its financial system.

Vatican Is 'Cash Only' As Bank Of Italy Blocks Electronic Payments Over Money Laundering Concerns

VATICAN CITY -- It's "cash only" now for tourists at the Vatican wanting to pay for museum tickets, souvenirs and other services after Italy's central bank decided to block electronic payments, including credit cards, at the tiny city-state.

Deutsche Bank Italia, which for some 15 years had provided the Vatican with electronic payment services, said Thursday that the Bank of Italy had pulled its authorization after Dec. 31.

The Corriere della Sera newspaper reported that the Italian central bank took the action because the Holy See has not yet fully complied with European Union safeguards against money laundering. That means Italian banks are not authorized to operate within the Vatican, which is in the process of improving its mechanisms to combat laundering.

The Vatican says it is scrambling to solve the problem for thousands of visitors who flock to its very popular Vatican Museums, which include highlights like the Sistine Chapel. The Holy See had no immediate comment on the Bank of Italy's reported reasons.