The US Treasury Department has issued a threat to MBaer Merchant Bank AG, a Swiss financial institution, accusing it of facilitating illicit activities tied to Iran, Russia, and Venezuela, Reuters reported on February 26.
The US government alleges that the bank played a role in money laundering, terrorist financing, and corruption, particularly involving Iran’s Islamic Revolutionary Guard Corps (IRGC) and its Quds Force, both of which are under US sanctions.
Ukraine has previously designated Iran’s Islamic Revolutionary Guard Corps a terrorist organization, Ukrainian President Volodymyr Zelenskyy stated, adding that the European Union had “practically agreed” to take the same step and that “European procedures are currently underway.”
Treasury Secretary Scott Bessent stated, “MBaer has funneled over a hundred million dollars through the US financial system on behalf of illicit actors tied to Iran and Russia,” signaling the US’s commitment to safeguarding the integrity of its financial system.
This rare move could sever MBaer’s access to the US dollar-based financial system, one of the most powerful regulatory tools available to the US, according to Reuters.
In response, the Treasury Department proposed a rule change that would prohibit US financial institutions from opening or maintaining correspondent accounts for MBaer. This development follows a history of US sanctions enforcement, notably the 2018 closure of Latvia’s ABLV Bank over similar charges.
Swiss regulators, including the Swiss Financial Market Supervisory Authority (FINMA), have been involved with MBaer’s case. FINMA concluded enforcement proceedings against the bank in late 2025, though the decision remains subject to an appeal.
Despite this, MBaer continues to operate, and the bank’s founder, Michael Baer, confirmed to Reuters that it manages around $4.5 billion in assets.
Earlier, Switzerland was set to impose a full ban on purchasing Russian gas and will introduce new restrictions on Russia’s industrial and financial sectors, as well as strengthen sanctions against Belarus.
According to reports, starting from April 25, the country would implement a comprehensive ban on the purchase and import of Russian liquefied natural gas (LNG). Existing contracts for gas imports will remain valid until the end of 2026, but they will not be renewed.
“The measure aims to reduce Russia’s revenues from the sale of fossil fuels, which are a major source of funding for the war against Ukraine,” the Swiss government said.Cyril Barabaltchouk, News Writer
