Vatican besieged by leaks, conspiracies

VATICAN CITY — Money laundering at the Vatican bank. Corruption in the awarding of Vatican contracts. Even a purported plot to kill Pope Benedict XVI.

The Vatican is being besieged by near-daily leaks of confidential documents and tabloid-style reports of alleged financial mismanagement, political infighting and gossip about who might be the next pope — all coming out at an exceedingly delicate time for the Holy See and Benedict himself.

The frescoed halls of the Apostolic Palace have been buzzing about the leaks, which have emerged as the pontiff prepares for the ceremony next week to crown 22 new cardinals — the princes of the church who will elect his successor.

Such ceremonies always breed unseemly speculation about a future pontiff since they provide a rare chance for cardinals new and old to size one another up. But the Feb. 18 consistory has taken on greater gravitas since the 84-year-old Benedict is showing signs of slowing down.

Conspiracy theorists reading the Italian media of late might also point to another looming date as reason for why the Vatican's dirty laundry is being aired now: In June, a European commission will decide whether the Holy See has abided by tough international anti-money laundering and anti-terror finance laws.

Compliance would mark a key step in the Vatican's goal of joining the so-called "white list" of countries that share financial information — a designation the Vatican hopes will forever dispense with its reputation as a scandal-plagued, secrecy-obsessed tax haven.

The flurry of articles and television news programs seemingly seeking to reinforce that reputation — regardless of whether it's deserved — certainly can't help the Holy See's bid.

All of which explains why the Vatican has been aggressively shooting down the reports with an unprecedented array of detailed, line-by-line refutations and sarcastic jabs at the journalists reporting them in a bid to set the record straight.

Almost lost in the shuffle is that the Vatican in recent weeks has done more to come into compliance with international financial norms than perhaps at any time in its history. It has ratified three major U.N. conventions, rewritten its law on money laundering and, separately, scored a legal victory in the U.S. concerning its embattled bank, the Institute for Religious Works or IOR.