Treasury Proposes Severing Swiss Bank MBaer's U.S. Access

Treasury Press Releases

Published February 26th, 2026

Detected March 1st, 2026

Summary

The U.S. Department of the Treasury's FinCEN has proposed a rule to sever Swiss bank MBaer's access to the U.S. financial system due to its financial support for illicit actors linked to Russia and Iran. If finalized, U.S. financial institutions would be prohibited from maintaining correspondent accounts for MBaer.

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What changed

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a Notice of Proposed Rulemaking (NPRM) to sever MBaer Merchant Bank AG's access to the U.S. financial system. This action is based on findings that MBaer is a primary money laundering concern due to its facilitation of over $100 million in illicit finance for actors tied to Russia and Iran, including terrorist organizations. The proposed rule, under Section 311 of the USA PATRIOT Act, would prohibit covered U.S. financial institutions from opening or maintaining correspondent accounts for MBaer.

Covered U.S. financial institutions must prepare for the potential prohibition on correspondent accounts with MBaer. The NPRM is open for public comment for 30 days following its publication in the Federal Register. Failure to comply with the final rule, if adopted, could result in significant penalties and the loss of access to the U.S. financial system for MBaer. The Treasury also highlighted its whistleblower program for individuals with actionable information.

What to do next

Review the Notice of Proposed Rulemaking regarding MBaer.
Submit comments to FinCEN within 30 days of publication in the Federal Register if applicable.
Prepare for potential prohibition on correspondent accounts with MBaer if the rule is finalized.

Penalties

If finalized, covered U.S. financial institutions would be prohibited from opening or maintaining a correspondent account for, or on behalf of, MBaer. Specific penalties for non-compliance by U.S. institutions are not detailed in this release but are implied by the severity of the action.

Source document (simplified)

Press Releases

Treasury Proposes Rule to Sever Swiss Bank MBaer’s Access to U.S. Financial System

February 26, 2026

MBaer Provides Financial Support to Iran and Russia

WASHINGTON —Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that, if finalized, would sever MBaer Merchant Bank AG (MBaer’s) access to the U.S. financial system as a result of its financial support to illicit actors linked to Russia and Iran. If finalized, the proposed rule would prohibit covered U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, MBaer.

“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia,” said Secretary of the Treasury Scott Bessent. “Banks should be on notice that the U.S. Treasury will aggressively protect the integrity of the U.S. financial system using the full force of our authorities.”

Since its inception, MBaer and its employees have enabled money laundering and illicit finance activities, including by facilitating corruption linked to Russian money laundering and money laundering and terrorist financing on behalf of Iran-aligned foreign terrorist organizations, including the Islamic Revolutionary Guard Corps and its Quds Force. MBaer is a critical access node to the U.S. dollar for a wide variety of illicit actors, putting U.S. national security at risk and undermining the integrity of the U.S. financial system.

Under section 311 of the USA PATRIOT Act, FinCEN, upon finding that reasonable grounds exist for concluding that a financial institution operating outside of the United States is of primary money laundering concern, may require covered financial institutions to take certain “special measures.” Today, FinCEN published a notice of proposed rulemaking (NPRM) setting out this finding and proposing to impose special measure five, which would prohibit covered domestic financial institutions from opening or maintaining a correspondent account for or on behalf of MBaer. Written comments on the NPRM may be submitted within 30 days of its publication in the Federal Register.

Whistleblower Program

FinCEN maintains a whistleblower incentive program for violations of the Bank Secrecy Act and certain sanctions and national security laws. Individuals who provide actionable information may be eligible for awards if their tip leads to a successful enforcement action. FinCEN encourages individuals with relevant information to submit whistleblower tips and learn more about FinCEN’s Whistleblower Program on its website: https://www.fincen.gov/whistleblower-program.

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