The funds were seized in September after the Vatican Bank made two suspicious transfers of $28 million and $5 million to Credito Artigiano and Banca del Fucino, respectively, ANSA reported Wednesday.
Prosecutors Nello Rossi and Stefano Rocco said the Vatican's new law, which formed the Financial Information Authority regulating agency, contributed to the decision to return the funds.
The new law, which became effective in March, is designed to stop corruption and fraud, but some say it does not go far enough, ANSA said.
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