A Vatican official, a financial broker and a former secret service police officer were arrested Friday on suspicion of corruption over an alleged attempt to smuggle a huge sum of cash into Italy, Rome's prosecutor said. The official, Monsignor Nunzio Scarano, works as a financial analyst in the Vatican office that administers Vatican-owned property. The archdiocese of Salerno, in southern Italy, issued a statement saying media reports identifying him as a bishop there were incorrect. Prosecutor Nello Rossi told reporters the three suspects could face corruption charges, with Scarano also facing a possible count of defamation. He stressed that the investigation is ongoing and that money laundering is not among the possible charges based on what investigators have uncovered so far. The suspects were identified as a result of a larger investigation into the Vatican bank, also known as the Institute for the Works of Religion, Rossi said, but Friday's arrests are not directly linked to the bank. The alleged offenses took place while the suspects were "attempting to illegally import from Switzerland large amounts of money in cash, to be considered the result of tax evasion," he said. The alleged attempt took place in July 2012 but it was never carried out in full, he said, as the money never left Switzerland and never reached Rome. Scarano and the two other suspects were trying at first to bring in â‚¬40 million ($52.1 million) in cash using a private plane, then the reduced sum of â‚¬20 million, he said. Scarano is suspected of being the intermediary between the broker and former secret service policeman and the people who wanted the cash, he said. The operation put in place to bring in the money was "extremely sophisticated," he said, in part because of the secret service officer's role in the plan. Investigators are looking at transactions from two accounts Scarano held at the Vatican bank, one a personal account and the other used for donations, he added. Vatican spokesman the Rev. Federico Lombardi said Scarano had been suspended from his work at the Vatican more than a month ago, as soon as his superiors had been informed that he was under investigation. The Vatican is ready and willing to cooperate with Italian authorities on the investigation when they get in touch, he said. Rossi has been investigating the Vatican bank's role and relationship with Italian banks for some years. Papal commission. The arrests come in the same week that Pope Francis established a papal commission tasked with investigating the activities of the Vatican bank. The commission, made up of four clerics and a Harvard law professor, will report to the pope with its findings "in view of possible reform," Lombardi said, according to Vatican Radio. The Vatican has been plagued by internal power struggles over its murky finances for decades. On Wednesday, a financial watchdog agency established in 2010 issued its first report on money laundering, in a move to improve financial transparency in the city-state. The document from the Financial Intelligence Authority shows six reports of "suspicious activity" in the past year, up from just one in 2011. It says the Vatican's prosecutors are investigating two of those reports for possible criminal activity. It wouldn't elaborate further. The Vatican bank is also working to improve transparency, announcing earlier this month that it will launch a website to publish an annual report of its activities. The bank serves thousands of Catholic charities, religious orders and dioceses around the world, in addition to roughly 500 people living in the tiny city-state. It has some 33,400 accounts and about $8 billion in assets. CNN's Hada Messia reported from Rome and Laura Smith-Spark wrote from London. CNN's Alanna Petroff contributed to this report.

Write highlights.
NEW: Prosecutor: The alleged attempt to bring cash into Italy was "extremely sophisticated" A Vatican official and two other people have been arrested, the prosecutor says. The 3 arrests are not directly linked to a probe into the Vatican bank, he says. Pope Francis set up a papal commission this week to look at the bank's activities.

Problem: The distraught family of a university student allegedly killed and dismembered by a Canadian porn actor have journeyed from their village in China to Montreal, where the grisly act took place. The family of Jun Lin, 33, met with investigators Wednesday, Montreal police told CNN affiliate CTV. Yan Shi, the head of the Chinese student association at Concordia University, where Lin was studying, told CTV that Lin's mother was extremely emotional and could not get through her words without constant tears. "We come to take you home now," she said. In the grisliest Montreal crime in years, police believe porn actor Luka Rocco Magnotta killed and dismembered Lin and posted a 10-minute video of it online. Montreal police Cmdr. Ian Lafreniere said the video shows Magnotta engaged in sexual acts involving body parts and also included evidence of cannibalism. The sick fascination with a death video. Police believe Magnotta sent Lin's body parts by mail to Ottawa and Vancouver. Magnotta then fled Montreal for Europe. Police arrested Magnotta in Berlin on Monday after he was spotted in an Internet cafe. He will be extradited to Canada to face first-degree murder charges. Suspect and victim knew each other, though has not defined the nature of their relationship. Lin's family hailed from a village in China and did not have much money, Lafreniere said. Montrealers have stepped up to help them in their days of absolute grief. "I am proud of that," Lafreniere said. Magnotta described himself as 'a people person' At a corner convenience store where Lin worked, a makeshift memorial went up with notes of condolences. Kankan Huang, Lin's boss at the store, said he felt terrible for the family. "If they need anything, I can do my best," he told CTV. All along, as gruesome details of this case have surfaced, Lafreniere has taken care with reporters to be mindful of the family's feelings and to show respect. Parts of Lin's body are still missing, including his head. "We have been working extremely hard to find all the body parts with respect to the family," Lafreniere said. Lin's left hand and foot were mailed to the headquarters of Canada's Conservative and Liberal parties in Ottawa. His right hand and foot showed up this week at two Vancouver schools. Lafreniere told Vancouver radio station CKNW that Magnotta had spent time in Vancounver. "Was it just passing by, or been there for a long time. We don't know," he said. "But we know he used to be in Vancouver, at least." Montreal police are investigating a website that hosted Magnotta's chilling 10-minute video of Lin's murder. The site could face criminal charges for publishing obscene material. Magnotta's name made headlines last week but he had already left disturbing trail in cyberspace. Lafreniere said investigators plan to look into accusations by online animal rights activists that Magnotta killed kittens by suffocation or drowning and videotaped himself doing it. There are also rumored links between the suspect and notorious killer Karla Homolka, arrested in 1993 for the rapes and murders of three Ontario girls, including her own sister. As part of a plea bargain, Homolka served 12 years in prison and was released a few years ago. So far, Lafreniere said investigators have no evidence linking Magnotta to other crimes. But he remains the sole suspect in Lin's killing. "Right now, we got no reason to believe there could be someone else involved in this horrible crime," Lafreniere said. CNN's Moni Basu and Paula Newton contributed to this report.
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Answer:
'We come to take you home now,' Jun Lin's mother says. Police believe porn actor Luka Rocco Magnotta killed Lin and dismembered him. Lin's family made the painful journey from China to Montreal. Magnotta was arrested in Berlin and will be extradited to Canada.