The Fall of MBaer: Swiss Bank's Sanctions Breach Leads to Shutdown
Switzerland's FINMA has ordered the wind-down of MBaer Merchant Bank AG after U.S. accusations of sanctions breaches linked to Russia and Iran. The bank failed in anti-money laundering controls. MBaer's board resigned, and it's in liquidation, only offering limited client payouts.
In a dramatic turn of events, FINMA, Switzerland's financial regulator, announced it will wind down MBaer Merchant Bank AG following allegations from the United States that the bank breached sanctions imposed against Iran and Russia. The Zurich-based bank and its staff are accused of enabling money laundering and terrorist financing.
The U.S. Treasury Department highlighted that MBaer and its employees were involved in Russian money laundering and other illicit activities related to Iran’s Islamic Revolutionary Guard Corps. FINMA's investigation revealed that MBaer's compliance measures were grossly inadequate, with 80% of its dealings deemed high-risk and a significant portion of its transactions involving sanctioned clients.
Following these revelations, MBaer announced its liquidation, with appointed liquidators Daniel Staehelin and Lukas Bopp at the helm. Despite having assets to cover liabilities, the bank faces severe restrictions on transactions. This event underscores the international financial community's intensified scrutiny following the Ukraine conflict and existing Iran sanctions.
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