[ by Melanie Gretchen ] Vatican City is vulnerable to money-laundering, according to the U.S. State Department.  So, for the first time, the Vatican was added to the list of 190 countries considered as money-laundering risks.  That list, made public in the 2012 International Narcotics Control Strategy Report, classifies the countries, centers and city-states in three risk-based categories:  Of Primary Concern;  Of Concern;  Monitored. Who's Who on the List. The Vatican, considered a city-state appears in the second classification - "Of Concern" - along with 67 other nations that include Poland, Egypt, Ireland, Hungary, and Chile. It was added to the list because it was considered vulnerable to money-laundering and had recently established programs to prevent it, according to Susan Pittman of the Department's Bureau of International Narcotics and Law Enforcement.  "With large volumes of international currency that goes through the Holy See, it is a system that makes it vulnerable as a potential money-laundering center." The most vulnerable M-L Centers included all members of the Group of Eight countries (U.S., Germany, Italy, and Russia), due to the size of their economies and banking systems able to facilitate money-laundering.  Also among most vulnerable were Britain's Channel Islands. The White List. Last year, the Vatican adapted internal laws to comply with international standards on financial crime - toward inclusion on the European Commission's so-called "white list" of states who comply with international standards against tax fraud and money-laundering.  A decision is expected in June. Past Indiscretions. The Vatican Bank, founded in 1942, came under scrutiny in September 2010, when Italian investigators froze $33 million (€23 million) in funds in Italian banks after opening an investigation into possible money-laundering.  The bank claimed it did nothing wrong, saying it was just transferring funds between its own accounts.  While the money was released in June 2011, the investigation continues. Recent programs to prevent money-laundering include the Vatican's new financial transparency laws introducing internal regulations to ensure its bank and all other departments adhere to international regulations and standards, and cooperate with foreign authorities.  Two months ago, Italian newspapers leaked internal letters, appearing to show a conflict among top Vatican officials about just how transparent the bank should be about dealings that took place before it enacted new laws. Prior to that, the bank was formally known as the Institute for Works of Religions.  It was wrapped up in the collapse 30 years ago of Banco Ambrosiano, surrounding money-laundering, free-masons, mafiosi, and the mysterious death of Ambrosiano chairman Roberto Calvi - "God's banker." For further details, go to [Reuters, 3/8/12].