U.S. Treasury Proposes Severing MBaer Merchant Bank from Financial System Over Allegations of Illicit Activities

On February 26, 2026, the U.S. Treasury Department announced a proposal to sever MBaer Merchant Bank AG's access to the U.S. financial system. This action is based on allegations that the Swiss bank has supported illicit actors linked to Iran and Russia, including facilitating money laundering and terrorist financing activities.

Treasury Moves to Block Swiss Bank Over Iran, Russia Money Laundering ClaimsBREAKING: US moves to cut Swiss bank MBaer from financial system over Iran, Russia linksReuters

The U.S. Treasury claims that MBaer Merchant Bank AG and its employees have been involved in corrupt activities associated with Russian money laundering schemes. Additionally, the bank is accused of aiding the Islamic Revolutionary Guard Corps and its Quds Force, both of which are under U.S. sanctions. Treasury Secretary Scott Bessent stated, “MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia.” The proposed rule would prohibit U.S. financial institutions from opening or maintaining correspondent accounts for MBaer, effectively cutting off its operations in the U.S. dollar-based financial system.

Treasury Moves to Block Swiss Bank Over Iran, Russia Money Laundering ClaimsReutersThe Straits Times

The Treasury's Financial Crimes Enforcement Network (FinCEN) has published a notice of proposed rulemaking, inviting public comments for 30 days regarding the plan to disconnect MBaer from the U.S. financial network. If finalized, this rule would prevent U.S. financial institutions from processing any transactions linked to MBaer, significantly impacting the bank's operations. Established in 2018, MBaer is a private bank headquartered in Zurich, Switzerland, primarily serving entrepreneurs and is owned mostly by Swiss investors.

BREAKING: US moves to cut Swiss bank MBaer from financial system over Iran, Russia linksReutersThe Straits Times

In his statement, Secretary Bessent emphasized the U.S. Treasury's commitment to protecting the integrity of the U.S. financial system, asserting that banks should be aware of the aggressive measures the Treasury will take against illicit financial activities. The Treasury's allegations highlight a broader concern regarding the involvement of foreign banks in facilitating money laundering and financial crimes.

The Straits TimesTreasury Moves to Block Swiss Bank Over Iran, Russia Money Laundering ClaimsReuters

While the U.S. Treasury's actions are aimed at enforcing financial integrity, critics may argue that such measures could strain international banking relations and impact legitimate business operations. The potential consequences of severing a bank's access to the U.S. financial system could lead to broader economic implications for the Swiss banking sector.

Treasury Moves to Block Swiss Bank Over Iran, Russia Money Laundering Claims

There are currently no conflicting reports regarding the allegations against MBaer Merchant Bank AG; however, the full extent of the bank's operations and its potential responses to these allegations remain unclear. The outcome of the proposed rule and its implications for MBaer and its clients will depend on the feedback received during the public comment period.

BREAKING: US moves to cut Swiss bank MBaer from financial system over Iran, Russia links

“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia,” — Scott Bessent, U.S. Treasury Secretary

Reuters

“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.” — Scott Bessent, U.S. Treasury Secretary

Reuters