A key figure in the Vatican’s financial-misconduct trial has apparently testified that Pope Francis approved a controversial deal with an Italian financier who now faces criminal charges.

Msgr. Alberto Perlasca, who signed key agreements in his capacity as an official of the Secretariat of State, has cooperated with Vatican prosecutors and—despite his involvement—in not a defendant in the trial. In his testimony, Msgr. Perlasca said that Pope Francis was aware of plans for a London real-estate deal with Gianluigi Torzi. Vatican prosecutors have charged that Torzi defrauded the Secretariat of State; Msgr. Perlasca’s testimony appears to indicate that the Torzi deal was approved by the Pontiff.