The US Treasury Department proposed a rule Thursday to cut a small Swiss bank’s access to the American financial system, over its dealings with “illicit actors” linked to Russia and Iran.
If this rule is finalized, it would bar covered US financial institutions from opening or maintaining a correspondent account for Zurich-based MBaer Merchant Bank.
“MBaer has funneled over a hundred million dollars through the US financial system on behalf of illicit actors tied to Iran and Russia,” said US Treasury Secretary Scott Bessent in a statement.
“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,” he said.
The Treasury charged that MBaer and its staff have enabled Russian money laundering as well as financing of terrorist activity, including that of the Islamic Revolutionary Guard Corps and its Quds Force.
The proposed rule described MBaer as “a small, private Swiss financial institution with a single office headquartered in Zurich.”
The Treasury’s Financial Crimes Enforcement Network (FinCEN) also assessed that MBaer has processed transactions linked to Venezuelan corruption.
Written comments on the proposed rule may be submitted within 30 days of its publication.
According to MBaer’s website, the Swiss Financial Market Supervisory Authority FINMA, granted it a banking license in December 2018.
The bank is majority-owned by Swiss investors, with other shareholders based in Asia and the Middle East, its website added.
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