The news: MBaer Merchant Bank AG, a small Swiss private bank, faces losing access to the US financial system after the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would sever its ties to the US dollar-based financial system over its alleged financial support of illicit actors linked to Iran, Russia and Venezuela.
If finalised, the rule would prohibit US financial institutions from opening or maintaining a correspondent account for or on behalf of MBaer.
What they said: Treasury Secretary Scott Bessent said in a statement that MBaer had funnelled more than USD100 million through the US financial system on behalf of those actors.
The statement accuses the bank and its employees enabling money laundering and illicit finance activities, including facilitating corruption linked to Russian money laundering and terrorist financing on behalf of Iran-aligned foreign terrorist organisations, including the Islamic Revolutionary Guard Corps and its Quds Force.
Bessent said: “Banks should be on notice that the US Treasury will aggressively protect the integrity of the US financial system using the full force of our authorities.”
FinCEN’s notice of proposed rulemaking invites written public comments for 30 days. MBaer has not commented.