The US Treasury Department on February 26 threatened to cut off access to the US financial system by Swiss private bank MBaer Merchant Bank AG on the grounds of violating sanctions against Iran, Russia and Venezuela.
The US Treasury Department accused MBaer and employees of this bank of facilitating corruption related to Venezuelan and Russian money laundering activities as well as money laundering and terrorist financing on behalf of the Iranian Islamic Revolutionary Guard Corps and the Quds Force - subjects sanctioned by the US.
MBaer has transferred more than 100 million USD through the US financial system on behalf of illegal entities linked to Iran and Russia. Banks should know that the US Treasury Department will strongly protect the integrity of the US financial system with all the strength of our functional forces" - US Treasury Secretary Scott Bessent emphasized in a statement.
The Swiss market management agency FINMA has contacted the bank and US authorities as well as finalized its own enforcement procedures with MBaer 3 weeks ago.
Due to MBaer's appeal, FINMA could not implement separate measures but appointed an audit agency to supervise the bank.
MBaer affirms that it is fully cooperating with Swiss authorities and supporting the work of auditors. The bank still maintains a solid capital and liquidity foundation while continuing business operations within its capabilities.
This is a rare move and uses the strongest tool in US power to enforce sanctions.
Data released by the Anti-Money Laundering Bureau of the Financial Crime Enforcement Network (FinCEN) of the US Treasury Department shows that this is the first time the US has threatened to apply this measure, which took effect after the attack on September 11, to a Swiss bank.
MBaer was founded in 2018. The founder of this bank is Michael Baer - former member of the executive board at the much larger Swiss private bank Julius Baer founded by his great-grandfather.
The most recent bank in Europe to suffer a similar fate is ABLV of Latvia, which was closed in 2018 after the US accused this bank of money laundering and violating US sanctions.
FinCEN announced a notice on the proposal to issue regulations, inviting written opinions within 30 days on the plan to remove MBaer from the USD-based financial system.
FinCEN said that this bank has used ghost companies to hide those behind those transactions, emphasizing money transfer activities related to Venezuelan state oil company PDVSA since 2020. This amount is related to the sale of millions of barrels of Venezuelan oil, violating US sanctions.
FinCEN emphasizes that Russians, including those subject to sanctions, prevail among the bank's customers. FinCEN links this Swiss bank to "illegal activities", including money laundering, for pro-Russian and Ukrainian politicians and businessmen.
