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NEWS: German bank’s brothel loan under scrutiny by regulators

Premium August 26, 2026

The logo of Germany's Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside of an office building of the BaFin in Bonn, Germany, April 15, 2019. REUTERS/Wolfgang Rattay/File Photo

NEWS: LATEST: FATF, AMLA and FCA among top voices in AFC confirmed for IAFCS2026 

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NEWS: French FIU Tracfin seeks new intelligence chief

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NEWS: Ukraine’s Sense Bank turned off AML controls, enabling money laundering transactions – report

By Tom Sims

GERMANY’S top financial regulator has questioned a regional bank over its financing of one of Europe’s largest brothels, a person with direct knowledge of the matter said.

BaFin’s request for information relates to a 2021 loan by Volksbank Koeln Bonn for the purchase of Cologne’s Pascha brothel by a Chinese investor, said the person, who spoke on condition of anonymity. Prostitution is legal in Germany.

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NEWS: LATEST: FATF, AMLA and FCA among top voices in AFC confirmed for IAFCS2026 

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NEWS: French FIU Tracfin seeks new intelligence chief

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NEWS: Ukraine’s Sense Bank turned off AML controls, enabling money laundering transactions – report

Regulatory Watch News

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    EAG

    The regional office of the Financial Investigation Department of the State Control Committee of the Republic of Belarus has identified and suppressed illegal activities of an art studio providing architectural design and interior design services for real estate projects located both in the Republic of Belarus and abroad. It has been established that during the period from 2022 to 2025, the company failed to fully reflect in its accounting records the funds received from the provision of architectural and design services. In total, more than 15 million belarusian rubles was concealed from taxation. These funds were used by the owners of the art studio for personal purposes, including the acquisition of high-value real estate in Belarus and abroad, as well as luxury vehicles.

  • AML Handbook Updates

    Isle of Man Financial Services Authority

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    • Updated guidance on De-risking.
    • Guidance added around Complex Structures
    • Guidance added around High-Net Worth Individuals
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    • Additional guidance added around ECDD
    • Additional guidance added around Commercially Exposed Persons
    • New chapter created for Sanctions Compliance guidance

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