U.S. Treasury Moves to Sever MBaer Bank From Financial System

The U.S. Department of the Treasury proposed a federal regulation on February 26, 2026, to sever the Swiss private bank MBaer Merchant Bank AG from the U.S. financial system. Acting through the Financial Crimes Enforcement Network, the Treasury alleges that the bank served as a critical access node for the U.S. dollar, facilitating corruption and money laundering for actors linked to Russia, Venezuela, and Iran's Islamic Revolutionary Guard Corps and its Quds Force.

Treasury Secretary Scott Bessent stated that MBaer funneled over $100 million through the U.S. financial system on behalf of these illicit actors. The proposal, issued under section 311 of the USA PATRIOT Act, would prohibit U.S. financial institutions from maintaining correspondent accounts for the bank. A 30-day public comment period has been opened before the rule is finalized.

This action coincides with indirect nuclear negotiations between U.S. and Iranian officials in Geneva, mediated by Oman. In Switzerland, the market regulator FINMA has concluded enforcement proceedings and appointed an audit monitor, though MBaer has blocked the implementation of certain measures through an appeal. MBaer Merchant Bank AG maintains that it is cooperating with Swiss authorities and that regulatory compliance remains a priority.