Monday, March 2, 2026-The U.S. Department of the Treasury has unveiled a high-stakes proposal aimed at cutting off Zurich-based MBaer Merchant Bank AG from the United States financial system, citing alleged involvement in money laundering and illicit financial support for sanctioned actors tied to Iran and Russia.
Under the proposed regulation laid out by the Treasury’s Financial Crimes Enforcement Network (FinCEN), if finalized, U.S. financial institutions would be barred from opening or maintaining correspondent accounts for MBaer — effectively cutting the Swiss bank off from the U.S. dollar-based financial infrastructure. Treasury Secretary Scott Bessent said the measure is intended to aggressively protect the integrity of the U.S. financial system against abuse by illicit actors and to send a strong signal to global banks.
The action is rooted in allegations that MBaer processed more than $100 million in transactions through the U.S. system on behalf of individuals and entities associated with money laundering, corruption, and terrorist financing, including Iran’s Islamic Revolutionary Guard Corps and linked Russian operatives.
FinCEN’s proposal under Section 311 of the USA Patriot Act designates the bank as a “primary money laundering concern,” a rare step that underscores the seriousness of the U.S. government’s concerns about sanctions evasion and illicit finance. Written public comments on the proposed rule will be accepted as part of the regulatory process before any final restrictions are adopted.
The move also coincides with parallel developments abroad: Switzerland’s financial regulator, FINMA, has taken enforcement actions against MBaer over anti-money-laundering and compliance deficiencies, though those measures were previously tied up in legal proceedings.
MBaer, which opened in 2018 and serves a range of international clients, has said it is cooperating with Swiss authorities and consulting with legal counsel on the U.S. proposal. The potential loss of access to the U.S. financial system — the backbone of global finance — represents a significant threat to MBaer’s international operations and highlights growing efforts by Washington to clamp down on global illicit finance networks.
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