The U.S. Treasury Department took a significant step on Thursday by announcing its intention to cut off MBaer Merchant Bank AG’s access to the U.S. financial system. The Swiss bank is under scrutiny for allegedly facilitating illicit financial activities tied to Iran, Russia, and Venezuela.
In an unusual use of its enforcement power, the Treasury claimed that MBaer had processed substantial sums linked to money laundering and terrorist financing. Treasury Secretary Scott Bessent emphasized the department’s commitment to safeguarding the U.S. financial infrastructure from corrupt financial practices.
The proposed regulation would prevent U.S. banks from maintaining accounts for MBaer. The Financial Crimes Enforcement Network issued a 30-day comment period about these measures, while Swiss regulators are involved in parallel proceedings with pending appeals from MBaer.
(With inputs from agencies.)