The U.S. Treasury Department on Thursday unveiled a proposed rule intended to sever MBaer Merchant Bank AG's access to the U.S. financial system, accusing the Swiss banking institution of facilitating illicit financial activity linked to Iran and Russia.
The Treasury's action centers on allegations that MBaer and certain employees aided corruption associated with Russian money-laundering efforts, while also engaging in money laundering and providing financial support used by Iran's Islamic Revolutionary Guard Corps and its Quds Force. Both the IRGC and the Quds Force are subject to U.S. sanctions, the Treasury said.
In a statement accompanying the proposal, Treasury Secretary Scott Bessent asserted that "MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia." He added that banks should take notice that the Treasury will apply the full scope of its authorities to safeguard the U.S. financial system's integrity.
The proposed rule would, if finalized, cut MBaer Merchant Bank AG off from the channels and institutions that comprise U.S. financial markets. The Treasury's announcement focuses on the alleged conduct by the bank and employees in relation to sanctioned entities and money-laundering activity. Specific operational details about the rulemaking timeline or the mechanics of restricted access were not provided in the Treasury statement.
The department's remarks emphasize enforcement of sanctions and protective measures for the U.S. financial system, framing the move as an application of existing authorities to address perceived weaknesses in cross-border financial controls tied to illicit actors.
As presented in the Treasury's statement, the allegations include both corruption-related facilitation for Russian money-laundering schemes and transactional support that benefitted Iran's Islamic Revolutionary Guard Corps and its Quds Force. The Treasury explicitly linked the bank's activity to more than one hundred million dollars moving through U.S. financial channels on behalf of those actors.
Additional details on the Treasury's evidence, the prospective timing of any final rule, or responses from MBaer Merchant Bank AG or other stakeholders were not included in the department's public statement accompanying the proposed rule.