U.S. Treasury Targets Swiss Bank MBaer in Bold Move Against Iranian and Russian Illicit Networks
The U.S. Treasury Department has issued a stark warning Thursday, threatening to sever MBaer Merchant Bank AG’s access to the American financial system by blocking its ability to operate within dollar-denominated transactions. The department accused the Swiss institution of maintaining ties to sanctioned Iranian and Russian actors, claiming it facilitated corruption linked to Russian money laundering operations and supported illicit activities for Iran’s Islamic Revolutionary Guard Corps and its Quds Force.
According to Treasury officials, MBaer has funneled over a hundred million dollars through U.S. financial channels on behalf of these entities. The department stated it is seeking amendments to Financial Crimes Enforcement Network rules to prohibit U.S. financial institutions from opening or maintaining accounts for the bank. Such restrictions would effectively cripple MBaer’s capacity to conduct transactions involving U.S. dollars and access the American system—a move described as the most severe action the Treasury can take against a foreign bank.
“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia,” Treasury Secretary Scott Bessent declared in a statement. “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.”
Switzerland’s financial regulator has also intervened, with the Swiss Financial Market Supervisory Authority (FINMA) recently concluding enforcement proceedings against MBaer. FINMA reported the bank violated money laundering prevention and risk management standards, particularly concerning sanctions compliance. The regulator assigned an audit officer to monitor MBaer during its appeal process and confirmed coordination with FinCEN.
This escalation occurs amid heightened U.S. economic pressure on Iran and Russia. Recent weeks have seen Treasury officials broaden sanctions targeting revenue streams—especially oil sales—to disrupt funding for military initiatives and destabilizing activities. On Wednesday, the Treasury announced new restrictions against Iranian entities accused of enabling illicit oil exports and advancing ballistic missile programs.
The sanctions were unveiled just one day before indirect nuclear negotiations with Iran resumed in Geneva. The diplomatic effort unfolds against a backdrop of expanded U.S. military presence in the region and warnings that force remains an option if talks collapse. Oman’s foreign minister, Badr Albusaidi, reported “significant progress” in recent discussions between U.S. and Iranian representatives, noting additional meetings are scheduled for next week in Vienna. Albusaidi added: “We will resume soon after consultation in the respective capitals.” He expressed gratitude to negotiators, the International Atomic Energy Agency, and Swiss authorities for their efforts.
