A FINMA probe found serious systemic deficiencies at the bank
Keystone / Peter Klaunzer
The Swiss Financial Market Supervisory Authority (FINMA) has ordered the liquidation of MBaer Merchant Bank, which has been labelled a money laundering risk by the United States.
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The supervisory authority had previously identified serious deficiencies in the Zurich-based private bank’s anti-money laundering practices during an investigation.
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The revocation of its banking license and the liquidation order were possible after MBaer Bank withdrew its appeal against the FINMA proceedings before the Federal Administrative Court, FINMA announced on Friday. The supervisory authority has already appointed liquidators at the bank.
In addition, FINMA has opened proceedings in four cases against unnamed individuals. These individuals may be responsible for violations of supervisory law in connection with the matters under investigation, the authority stated.
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The FINMA investigation revealed “serious systemic deficiencies” at MBaer regarding compliance with due diligence obligations to combat money laundering, as well as in its administrative organization and risk management. These deficiencies primarily concerned the handling of clients who were subject to Swiss or international sanctions. With the bank’s help, they could have circumvented official asset freezes.
High risk clients
FINMA had already opened proceedings against MBaer in 2024 following investigations into clients in connection with Russian sanctions. The investigation revealed that 80% of client relationships exhibited elevated risks. Most recently, a staggering 98% of the assets received originated from “high-risk clients,” the authority writes.
For the supervisory authority, this meant that the licensing requirements were no longer met. “From FINMA’s perspective, the systematic deficiencies were irreparable under the given circumstances,” the statement reads.
On Thursday, the US authorities classified MBaer as a “primary money laundering risk” and intended to deny the bank access to the US financial system. The bank “drained hundreds of millions of dollars through the US financial system on behalf of illegal actors with ties to Iran and Russia,” US Treasury Secretary Scott Bessent was quoted as saying in a statement.
Specifically, MBaer and its employees are alleged to have facilitated corruption related to Russian money laundering, as well as the financing of terrorism on behalf of terrorist organizations linked to Iran. These included the Islamic Revolutionary Guard Corps and its Quds Force, according to the US Treasury Department.
According to FINMA, the bank, which received a banking license in 2018, managed client assets totaling CHF4.9 billion at the end of 2025 and maintained nearly 700 client relationships. It employed more than 60 people.
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Swiss MBaer bank labelled money laundering threat by US
Adapted from German by AI/mga
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