The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would cut off MBaer Merchant Bank AG, a Swiss financial institution, from access to the U.S. financial system. The action follows findings that MBaer provided financial services to individuals and entities connected to Iran and Russia.
According to Secretary of the Treasury Scott Bessent, “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, “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.”
Authorities state that since its founding, MBaer and its employees have facilitated money laundering activities linked to Russian corruption as well as money laundering and terrorist financing for organizations aligned with Iran, including the Islamic Revolutionary Guard Corps and its Quds Force. Officials describe MBaer as an important channel for illicit actors seeking access to U.S. dollars, posing risks to national security.
Under section 311 of the USA PATRIOT Act, FinCEN can designate foreign banks as being of primary money laundering concern and impose special measures against them. The notice published today proposes implementing special measure five, which would bar covered U.S. financial institutions from opening or maintaining correspondent accounts for MBaer.
Written comments on this proposed rule can be submitted within 30 days after it appears in the Federal Register.
FinCEN also highlighted its whistleblower program related to violations of anti-money laundering laws and certain sanctions regulations. Individuals providing actionable information may qualify for awards if their tips result in successful enforcement actions. More details are available at https://www.fincen.gov/whistleblower-program.
