It’s Time for Papal Transparency on the Holocaust

The new Pope Leo XIV can make history by at long last releasing the World War II archives of the Vatican Bank and expose one of the church’s darkest chapters.

The Catholic Church has a new leader—Pope Leo XIV—born in 1955 in Chicago, Robert Francis Prevost is the first American to head the church and serve as sovereign of the Vatican City State. Many Vatican watchers will be looking for early signs that Pope Leo XIV intends to continue the legacy of Pope Francis for reforming Vatican finances and for making the church a more transparent institution.

There is one immediate decision he could make that would set the tone for his papacy. Pope Leo could order the release of the World War II archives of the Vatican Bank, the repository with files that would answer lingering questions of how much the Catholic Church might have profited from wartime investments in Third Reich and Italian Fascist companies and if it acted as a postwar haven for looted Nazi funds. By solving one of last great mysteries about the Holocaust, Pope Leo would embrace long overdue historical transparency that had proved too much for even his reform-minded predecessor.

The Vatican is not only the world’s largest representative body of Christians, but also unique among religions since it is a sovereign state.

What is sealed inside the Vatican Bank archives is more than a curiosity for historians. The Vatican is not only the world’s largest representative body of Christians, but also unique among religions since it is a sovereign state. It declared itself neutral during World War II and after the war claimed it had never invested in Axis powers nor stored Nazi plunder.

In my 2015 history of the finances of the Vatican (God’s Bankers: A History of Money and Power at the Vatican), I relied on company archives from German and Italian insurers, Alliance and Generali, to show the Vatican Bank had invested in both firms during the war. The Vatican earned outsized profits when those insurers expropriated the cash values of the life insurance policies of Jews sent to the death camps. After the war, when relatives of those murdered in the Holocaust tried collecting on those life insurance policies, they were turned away since they could not produce death certificates.

When relatives of those murdered in the Holocaust tried collecting on life insurance policies, they were turned away.

How much profit did the Vatican earn from the cancelled life insurance policies of Jews killed at Nazi death camps? The answer is inside the Vatican Bank archives.

Also in the Vatican Bank wartime files is the answer to whether the bank hid more than $200 million in gold stolen from the national bank of Nazi-allied Croatia. According to a 1946 memo from a U.S. Treasury agent, the Vatican had either smuggled the stolen gold to Spain or Argentina through its “pipeline” or used that story as a “smokescreen to cover the fact that the treasure remains in its original repository [the Vatican].”

The Vatican has long resisted international pressure to open those wartime bank files. World Jewish Congress President Edgar Bronfman Sr. had convinced President Bill Clinton in 1996 that it was time for a campaign to recover Nazi-looted Jewish assets. Clinton ordered 11 U.S. agencies to review and release all Holocaust-era files and urged other countries and private organizations with relevant documents to do the same.

The Vatican refused to join 25 nations in collecting documents across Europe to create a comprehensive guide for historians.

The Vatican refused to join 25 nations in collecting documents across Europe to create a comprehensive guide for historians. At a 1997 London conference on looted Nazi gold, the Vatican was the only one of 42 countries that rejected requests for archival access. At a restitution conference in Washington the following year, it ignored Secretary of State Madeleine Albright’s emotional plea, and it opted out of an ambitious plan by 44 countries to return Nazi-looted art and property, settle unpaid life insurance claims and reassert the call for public access to Holocaust-era archives.

Subsequent requests for opening the files by President Clinton and Jewish organizations went unanswered. Historians were meanwhile inundated with millions of declassified wartime documents from more than a dozen countries and only a handful of Jewish advocacy groups pressed the issue during the last years of John Paul II’s papacy and the eight years of Benedict XVI.

Pope Francis opened millions of the Church’s documents.

To his credit, in March 2020, Pope Francis opened millions of the church’s documents about its controversial wartime pope, Pius XII. That fulfilled in part a promise Pope Francis had made when he was the cardinal of Buenos Aires: “What you said about opening the archives relating to the Shoah [Holocaust] seems perfect to me. They should open them [the Holocaust files] and clarify everything. The objective has to be the truth.”

And while Pope Francis was responsible for reforming a bank that had often served as an offshore haven for tax evaders and money launderers and frustrated six of his predecessors, he nevertheless kept the Vatican Bank files sealed.

Pope Leo XIV is the Vatican Bank’s sole shareholder. It has only a single branch located in a former Vatican dungeon.

Pope Leo XIV is the Vatican Bank’s sole shareholder. It has only a single branch located in a former Vatican dungeon in the Torrione di Nicoló V (Tower of Nicholas V). The new Pope can order the release of the wartime Vatican Bank archives with the speed and ease with which a U.S. president issues an executive order. It would be a bold move in an institution with a well-deserved reputation for keeping files hidden sometimes for centuries. It took more than 400 years for the Church to release some of its Inquisition files (and at long last exonerate Galileo Galilei), and more than 700 years before it cleared the Knights Templar of a heresy charge and opened the trial records.

Opening the Vatican Bank’s wartime archives would send the unequivocal message that transparency is not merely a talking point, but instead a high priority that the new Pope plans to apply to the finances of the church, both in its history as well as going forward. Such a historic decree will mark his Papacy as having shed some light on one of the church’s darkest chapters. In so doing, Pope Leo will pay tribute to the families of victims of World War II who have been long been demanding transparency and some semblance of justice.