VATICAN CITY- Italian tax police opened an inquiry Wednesday into transactions allegedly involving Cardinal Tarcisio Bertone as the Vatican strongly denied reports the prelate embezzled 15 million euros.

 Soon after their publication on Tuesday spokesman Federico Lombardi refuted the sensational assertions made by German daily 'Bild' that the former secretary of state was probed by Vatican prosecutors on the suspicion of stealing 15 mln euros from Vatican coffers at the end of 2012.  

 According to the German tabloid, the embezzled funds were transferred to the Italian production company Lux Vide, owned by former head of RAI TV and cardinal’s friend Ettore Bernabei.

 In an official statement Father Lombardi said “There is no probe of a penal nature against Cardinal Bertone,” while the ex-state secretary himself told the ANSA news agency that report was an “invention,” and that the transaction in question was conducted in a “normal” manner to the full knowledge of former pope Benedict XVI.

 So far Italian investigators have scrutinized a number of Lux Vide financial operations as part of a larger probe into the Institute for the Works of Religion (IOR), the Vatican bank, regarding suspected violations of existing norms against money laundering. Lux Vide spokesmen denied, however, there was any investigation aimed specifically at IOR loans to the company, or its administrators.

 Meanwhile the Vatican Financial Information Authority, an institution charged with monitoring the monetary and commercial activities of the Holy See agencies with special attention to cases of money-laundering, published Monday its annual report, indicating an increase in suspicious transactions recorded in the last twelve months. 202 dubious operations were discovered, however AIF director René Bruelhart refused to provide more information on said transactions, or comment on the investigations into the IOR.

 The AIF itself has been subject of much criticism regarding its unclear organisation and status within the Vatican City state. Created by Benedict in 2010, the agency lost much of its autonomy under Cardinal Bertone, who considerably reduced its controlling authority only a few months after its foundation, unbeknownst to the pope.

 It was Francis who re-established it as an independent institution charged with control of the Vatican bank, in a complete autonomy from the Secretary of the State’s office.