Pope Francis on
Wednesday named a new head of Vatican financial information
authority AIF after the previous one's tenure was not renewed
following a scandal involving a London property deal allegedly
funded with Peter's Pence.
The pontiff named Carmelo Barbagallo, until now a Bank of
Italy high consultant on banking and financial oversight and
relations with the Single Supervisory Mechanism, in place of
René Brülhart.
Brülhart's term ended last week.
"I am honoured to have received this appointment, aware of
the full weight of the moral and professional responsibility it
carries, and I thank the Holy Father for the trust he has placed
in me", the new President of the Financial Information
Authority, Carmelo Barbagallo, said when speaking to Vatican
News after publication of the news of his appointment.
"In carrying out my service of responsibility in leading the
AIF", Barbagallo added, "I will work to bring all my experience
accumulated in forty years working at the Bank of Italy, as an
inspector, as head of vigilance of the Italian banking and
financial sector and in the context of the supervision of the
European banking system."
"I am sure", he explained, "that the AIF will be able to give
its own contribution in its role as a supervisory authority, so
that the fundamental values of fairness and transparency of all
the financial movements in which the Holy See is engaged may
continue to be affirmed and recognized."
"I intend to reassure the international system of financial
information", the President of the AIF concluded, "that all
cooperation will be given in full respect of the best
international standards. I will be at work already today to
ensure continuity in the work of the AIF in pursuing its
important institutional objectives."
For its part, Bank of Italy, in a statement, said:
"Today His Holiness Pope Francis appointed Carmelo Barbagallo
as President of the Financial Information Authority of Vatican
City.
"Carmelo Barbagallo, in his long professional career at Bank
of Italy, has gained extensive experience in the field of
banking supervision. Since 2014 he has been head of the
Supervision Office and in July of this year he was appointed as
consultant to the Directory for relations with the Single
Supervisory Mechanism (SSM), the structure that oversees the
major European banks.
"Bank of Italy expresses its deep appreciation for the work
carried out in recent years with dedication and competence by
Carmelo Barbagallo. His appointment consolidates the fruitful
relationship of collaboration that has existed for some time
with the Vatican Authority."
Biography of Carmelo Barbagallo:
Born in Catania on 28 February 1956, married with two
children. In 1978 he was awarded a degree in Law with honours
from the University of Catania; in 1979 he completed a
post-graduate course in Regional Economics and collaborated with
the chairs of Private Law and Industrial Law. He is a qualified
auditor.
In 1980 he joined the Bank of Italy and was appointed to the
Supervision Office of the Genoa branch. After performing his
military service as an officer in the Finance Police, in 1983 he
was transferred to the Milan branch, where he worked in the
Economic Research Unit and the Supervision Office, focusing on
the real economy of Lombardy and the analysis of banks of
national interest (Banca Commerciale Italiana and Credito
Italiano) and investment funds.
From 1985 onwards he worked in the Supervision Inspectorate
at the Bank of Italy's Head Office. In this period he was
responsible for organizing training courses and participated in
numerous working groups. Among other matters he was concerned
with impaired and restructured loans and contributed to the
drafting of the 1993 Consolidated Law on Banking. He was also a
member of various selection committees for the Bank of Italy's
hiring of young graduates.
As a supervision inspector he was responsible for several
on-site examinations at banks and financial intermediaries, in
Italy and abroad. Among other matters he was concerned with the
validation of advanced risk-measurement models provided for by
the Basel Accord. He oversaw the preparation of the current
version of the Guide to Supervisory Activities.
In January 2009 he was appointed Deputy Head of the
Supervision Inspectorate and in May 2011 he was made its head.
In February 2013 he was appointed Managing Director for
Banking and Financial Supervision.
From 27 January 2014 to 30 June 2019 he was Director General
for Financial Supervision and Regulation.
As of 1 July 2019 he is Managing Director responsible for
high-level consultancy to the Governing Board on matters of
financial supervision and regulation and for relations with the
Single Supervisory Mechanism (SSM).
He has written numerous articles on banking and financial
subjects, with special reference to questions regarding
financial innovation and the supervision of derivative
instruments.
Barbagallo's appointment came a day after Francis, on the
flight back from a trip to Thailand and Japan, said things were
done that "don't seem clean to me" about the acquisition of a
property in London at the centre of the latest Vatican financial
scandal.
He said there was a "presumption" of corruption in the
affair, and that questioning would take place soon.
Cardinal Angelo Becciu, the assistant Vatican secretary of
state, on October 29 rejected charges against him in the Vatican
probe into a property deal in London.
"They are slanderous charges that I reject in a firm and
indignant way. My conscience is clear and I know I have always
acted in the interest of the Holy See and never in my personal
one. Those who know me well can attest to that", he told ANSA.
The charge he rejected most forcefully was "portraying me as
someone who played with and tampered with the money of the
poor".
"In the Secretariat of the State we had a fund entitled
'money of the poor'. And it was destined for the poor. If, on
the other hand, for money of the poor they want to refer to
Peter's Pence, we have to clarify.
"The Pence is not only for the pope's alms giving but also
the funding for his Pastoral ministry".
Vatican Secretary of State Cardinal Pietro Parolin said
earlier Tuesday that he was confident Vatican investigations
will "shed light" on the "opaque" use of Peter's Pence for a
property deal in London.
The deal is at the centre of a probe which saw investigators
this month raid the offices of two Vatican departments, the
Financial Information Authority (AIF) and the Secretariat of
State, and the preventative suspension of five employees, one of
whom has since been reinstated.
When asked about how the Catholic Church's money is managed,
Parolin replied "I think it is well administered".
The Secretariat reportedly invested around $200 million for a
stake in a project to buy a building in Chelsea and convert the
property into luxury apartments in 2014.
It reportedly bought up the rest of the project in 2018.
Becciu told ANSA "why should (the transactions) be opaque?"
"It is accepted practice for the Holy See to invest in
property, it has always done so: in Rome, in Paris, in
Switzerland and also in London.
"Pius XII was the first to acquire property in London. We
were advanced this proposal on this historic and artistic
building and when it was done and realised there was nothing
opaque. The investment was regular and registered according to
law".
He said "the difficulties started with the majority partner,
with whom I believe issues regarding the management of the
liquidity arose.
He did not cite the manager of the fund, Raffaele Mincione.
"He, in fact, ignoring the indications reiterated on numerous
occasions, also in writing, continued to invest in assets that
the Secretariat of State could not absolutely share or approve",
said Becciu.
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