Swiss Bank MBaer Shuttered Over Alleged Sanctions Violations

Bloomberg, AP, and the Hill contributed to this report.

Swiss authorities have pulled the plug on MBaer Merchant Bank AG after evidence emerged that it helped clients dodge sanctions, calling the bank a risk to the country and its financial system.

The move comes a day after the US announced plans to cut MBaer off from its financial system over alleged ties to Iran and Russia. The Treasury’s Financial Crimes Enforcement Network (FinCEN) claims MBaer helped clients launder money and that executives may have been complicit in some activities.

Founded in 2018, MBaer was tiny by Swiss banking standards – around $245 million in assets, ranking it 200th in the country. But despite its size, US authorities say the bank funneled over $100 million through the US financial system for criminal actors in Iran and Russia, making it a major risk.

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

Swiss regulator FINMA confirmed it revoked MBaer’s license after concluding the bank breached anti-money laundering rules and failed to properly manage sanctions-related risks. An audit officer will monitor the bank while an appeal is pending, and FINMA is coordinating with FinCEN.

The closure highlights growing pressure on Iran- and Russia-linked entities as US sanctions tighten, including moves targeting Iranian oil sales and military programs. The timing is notable: the US and Iran were holding indirect nuclear talks in Geneva just as the MBaer crackdown was announced.

MBaer had no ties to the larger Swiss bank Julius Baer, and a spokesperson for the bank wasn’t immediately available for comment.

This high-profile shutdown underscores that even small players in the financial system can face sweeping consequences if they’re suspected of helping sanctioned countries or illicit actors move money across borders.