FINMA moved to liquidate Zurich‑based MBaer Merchant Bank after finding systemic anti‑money‑laundering deficiencies and evidence that clients used the bank to evade sanctions. Regulators cited widespread high‑risk relationships and warned of severe compliance breakdowns that threatened access to U.S. financial systems.

Swiss regulator FINMA announced it would wind down MBaer Merchant Bank after concluding the institution exhibited systemic anti‑money‑laundering control failures and facilitated client conduct that enabled evasion of asset freezes tied to sanctions regimes, including those related to Iran, Russia and Venezuela. The decision followed a probe that identified inadequate client due diligence, deficient monitoring of high‑risk business relationships and failures to prevent circumvention of international financial restrictions. FINMA said the bank’s deficiencies were serious enough to warrant license revocation and an orderly liquidation to protect creditors and uphold Swiss financial integrity. The move also followed pressure from U.S. authorities, including a threatened cut-off of access to U.S. financial systems by the U.S. Treasury if corrective actions were not taken. Regulators framed the decision as necessary to prevent further misuse of Swiss banking facilities for illicit cross‑border flows and to send a clear signal that systemic compliance breakdowns and sanctions evasion will lead to severe supervisory measures.