The chairman of the Vatican Bank is under investigation for possible money laundering violations, and Italian police have seized EUR23 million in deposits as a precautionary measure, Ansa news agency reportedTuesday.

The wire service, citing unnamed police, said authorities are looking at whether Ettore Gotti Tedeschi broke a 2007 law regarding the disclosure of account holder identities. Paolo , director general of Istituto per le Opere di Religione, as the bank is formally known, is also under investigation.

The...