The U.S. Department of the Treasury’s Financial Crimes Enforcement Network proposed a rule on Thursday that would, if finalized, cut off MBaer Merchant Bank AG from the American financial system as a result of the Swiss bank’s financial support to illicit actors linked to Russia and Iran.
“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia,” stated Scott Bessent, secretary of the Treasury. “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.”
According to the department, the bank has facilitated money laundering and “illicit finance activities” on behalf of the U.S.-sanctioned Islamic Revolutionary Guard Corps and its Quds Force, which oversees foreign intelligence operations for Iran and supports terror proxies, including Hamas, Hezbollah and the Houthis.
The Treasury described MBaer as “a critical access node to the U.S. dollar for a wide variety of illicit actors,” warning that its activities threaten U.S. national security and undermine the integrity of the American financial system.
Under the USA PATRIOT Act, FinCEN can impose special measures on foreign financial institutions deemed to be of primary concern for money laundering. The proposed rule would bar covered U.S. financial institutions from opening or maintaining correspondent accounts for or on behalf of MBaer.
FinCEN has opened a 30-day public comment period following publication of the notice of proposed rulemaking, after which the agency may finalize the restriction.
