JPMorgan Chase is closing the Vatican bank’s account with an Italian branch of the US banking giant because of concerns about a lack of transparency at the Holy See’s institution, Italian newspapers have reported.

The move is a blow to the Vatican’s drive to have its bank included in Europe’s “white list” of states that comply with international standards against tax fraud and money laundering. The bank, formally known as the Institute for Works of Religion (IOR), enacted reforms last year to secure Europe’s approval and put behind it scandals that have included accusations of money laundering and fraud.

Italy’s leading financial daily Il Sole 24 Ore reported at the weekend that JPMorgan Chase in Milan had told the IOR of the closing of its account in a letter on February 15th. Il Sole said JPMorgan Chase informed the IOR that the account was being closed because the bank’s Milan branch felt the IOR had failed to provide enough data on money transfers.

It said some €1.5 billion passed through it in about 18 months. It said the account was a “sweeping facility”, meaning it was emptied out at the end of each day with funds transferred to another IOR account in Germany.