The Italian daily Corriere della Sera reported Thursday that Bank of Italy 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's scrambling to find a non-Italian bank to provide the electronic payment services "quite soon" but declined to discuss Bank of Italy's concerns.
The central bank had no immediate comment on the situation.
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