On February 27, the Swiss Financial Supervisory Authority (FINMA) ordered the emergency dissolution of MBaer Merchant Bank. This decision was made less than 24 hours after the US Treasury Department threatened to remove this bank from the USD payment system.
For a private bank, not being allowed to trade in USD is equivalent to a death sentence, causing the entire MBaer board of directors to resign simultaneously on the morning of February 27.
The reason why the US took drastic action lies in the figures just exposed: 98% of assets at MBaer come from high-risk customers and 80% of the bank's business relationships show signs of obscurity.
The US accuses MBaer of turning itself into a "transit point" for sanctioned money flows from Russia and Iran, directly assisting transnational money laundering activities. This violation is considered particularly serious, directly threatening the reputation of the Swiss financial center, which is under pressure from the tax policies of President Donald Trump's administration.
As of the end of 2025, MBaer manages assets of 6.38 billion USD of about 700 customers. After sanctions, the entire board of directors resigned and management rights were transferred to the liquidated unit.
Instead of conventional measures, the Trump administration has activated Section 311 of the Patriot Act to isolate MBaer from the US financial system. This is seen as a new "model" of cooperation between the US and Switzerland to tighten control over illegal money flows at private banks.
Currently, MBaer's customers can only withdraw a maximum of about 130,000 USD and only receive Swiss Franc due to foreign currency trading restrictions from the US.
It is expected that next week, senior US Treasury officials will go to Switzerland to work with regulators and bankers. This move is aimed at strengthening US Treasury Secretary Scott Bessent's statement on using all power to protect the integrity of the national financial system.
