Pope steps up supervision of Vatican bank amid corruption scandal It also establishes a "Financial Security Committee" to coordinate efforts to prevent laundering, terrorism financing and the proliferation of weapons, the Vatican said. Pope Francis has made cleaning up the Vatican administration one of his central goals since his election in March. He has brought in international experts to advise him on economic affairs, improve transparency and enforce accounting principles. He has also set up a special commission of inquiry to reform the IOR. In July the pope said the bank must become "honest and transparent." The Vatican's financial dealings are again under scrutiny after the arrest of a senior Catholic priest at the centre of a money smuggling case. Italian prosecutors are investigating two former IOR top executives on suspicion of repeatedly breaking Italian money laundering laws. In 2010, Rome magistrates froze 23 million euros (£19,795,000) held by the IOR in an Italian bank. The Vatican said its bank was merely transferring funds between its own accounts in Italy and Germany. The funds were released in 2011 but the money laundering investigation continues. Last month the FIA signed a memorandum of understanding with Italian authorities over the exchange of financial and bank information as part of efforts to combat money laundering in line with international standards.