Concerns the Vatican City has not fully complied with new European Union safeguards against money laundering will see all Italian banks pull out of the tiny state.

The decision means tourists visiting the historic destination will be forced to use cash for all transactions.

All ATM machines are being removed, along with card readers, meaning tourists will need cash for tickets and souvenirs.

Souvenir shops will accept euros, dollars but no cards.

The ability to buy tours online using credit or debit cards will end on January 15th.