Executive Summary
- The Holy See (the State) invested US$200.5 million borrowed from Credit Suisse and Banca Svizzera Italiana into Athena Capital’s sub-fund, Athena GOF, focusing on luxury property development in London’s Royal Borough of Kensington & Chelsea.
- The State initially held a 45% indirect interest in the property at 60 Sloane Avenue, later acquiring full ownership in 2018 before exiting in 2022.
- The investment was unsuccessful, raising questions about the State’s expertise and decision-making in commercial finance and property.
- Litigation arose between the State and four Claimants, including fund manager Raffaele Mincione, alleging conspiracy and breach of duty linked to transactions and involving Italian businessman Gianluigi Torzi.
- Parallel criminal proceedings in the Vatican tribunal have convicted Mincione for 2013-14 events; appeals and UN human rights complaints are ongoing.
- The English High Court is adjudicating contractual disputes under exclusive jurisdiction clauses, with 31 declarations sought by Claimants.
Sanctions Highlights
- Sanctions implications are present due to the involvement of UK and US jurisdictions in financing and property transactions.
- The borrowing from Credit Suisse and Banca Svizzera Italiana, both international banks, may trigger scrutiny under UK and US sanctions regimes (matched: bis).
- The State’s investment and subsequent property dealings in London expose it to regulatory compliance risks amid evolving sanctions on financial flows and real estate.
- No direct sanctions against the Holy See, but indirect exposure through financial intermediaries and cross-border transactions.
Emerging Risks
- Reputational risk for the Holy See due to involvement in complex commercial borrowing and luxury property investment, inconsistent with its religious governance role.
- Legal risk from ongoing and future litigation, including criminal proceedings and appeals involving key individuals.
- Financial risk from mismanagement and lack of expertise in investment decisions, potentially leading to further losses or liabilities.
- Potential regulatory risk from UK and US authorities monitoring cross-border financial transactions linked to sanctioned entities or jurisdictions.
Geopolitical Impact
- The case highlights the intersection of religious governance (Holy See) with international finance and property markets in the UK.
- UK courts assert jurisdiction over disputes involving the Holy See, reflecting the UK’s role as a global legal and financial hub.
- US and UK sanctions frameworks influence the oversight of financial transactions involving the Holy See and related parties.
- Libya is mentioned in the context of a prior investment proposal (oil sector), indicating broader geopolitical considerations in resource-rich regions.
Economic Intelligence
- The Holy See’s borrowing of over US$200 million and investment in high-value London real estate underscores its engagement in significant commercial finance.
- The property at 60 Sloane Avenue was positioned for luxury redevelopment with apartments priced at £27.5 million+, reflecting high-end market dynamics.
- The State’s exit in 2022 marks a financial retreat after failed investment, with potential losses and write-downs.
- The involvement of multiple international financial actors and fund managers illustrates complex capital flows and asset management challenges.
Strategic Recommendations
- The Holy See should enhance financial governance and expertise to manage future investments, avoiding overreliance on external advisors without adequate oversight.
- Conduct thorough compliance reviews of all cross-border financial transactions to mitigate sanctions and regulatory risks.
- Engage independent financial and legal advisors to assess and restructure existing investments and pending litigation exposure.
- Increase transparency and communication regarding investment activities to manage reputational risks within religious and international communities.
- Monitor ongoing criminal and civil proceedings closely to anticipate and mitigate further legal and financial consequences.
---
**Source Notes:**
Sanctions Intelligence Digest
[https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/355.txt](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/355.txt)