Swiss Financial Market Supervisory Authority (FINMA) stated on Feb. 27 that a liquidation order for Swiss bank MBaer Merchant Bank AG is now effective.
The action follows a proposed U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) rule that called for the severing of MBaer Merchant Bank AG’s access to the U.S. financial system and would prohibit U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, MBaer.
FINMA revoked the bank’s license as a result of law enforcement proceedings. The bank is accused of money laundering and illicit finance activities. Accusations include Russian money laundering, and money laundering and terrorist financing on behalf of Iran-aligned foreign terrorist organizations. These activities put the United States’ national security at risk and undermine the integrity of the U.S. financial system, the Treasury said.
“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia,” Secretary of the Treasury Scott Bessent said. “Banks should be on notice that the U.S. Treasury will aggressively protect the integrity of the U.S. financial system using the full force of our authorities.”
FinCEN is authorized by law to take certain “special measures” if it concludes there are reasonable grounds that a financial institution operating outside of the United States is money laundering.