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5d ago

U.S. Proposes Cutting Off Swiss Bank MBaer From U.S. Financial System Over Illicit Finance Allegations

The FinCEN proposal opens a 30-day comment period under Section 311 that could bar U.S. correspondent accounts for the bank.

Secretary of the Treasury Scott Bessent speaks during an interview following President Donald Trump's State of the Union address to a joint session of Congress in the House chamber at the U.S. Capitol in Washington, Tuesday, Feb. 24, 2026. (AP Photo/Rod Lamkey, Jr.)
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U.S. Treasury Secretary Scott Bessent attends a Senate Banking, Housing and Urban Affairs Committee hearing on the Financial Stability Oversight Council's annual report to Congress, on Capitol Hill in Washington, D.C., U.S., February 5, 2026. REUTERS/Jonathan Ernst
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Overview

  • FinCEN moved to impose Special Measure Five, which would prohibit covered U.S. institutions from opening or maintaining correspondent accounts for MBaer if the rule is finalized.
  • Treasury alleges MBaer routed more than $100 million through the U.S. system for illicit actors tied to Iran and Russia, including activity linked to the IRGC and its Quds Force.
  • The notice cites years of transactions related to Venezuelan corruption alongside Russian and Iranian illicit finance.
  • The proposed restriction is not yet in force and would take effect only after the rulemaking process concludes following the 30-day comment window.
  • Swiss regulator FINMA said it completed its own enforcement case but cannot implement measures pending an appeal, has installed an audit monitor at the bank, and MBaer says it is cooperating and remains well capitalized and liquid.