Finance
Liquidation order for MBaer Merchant Bank is effective, watchdog says
Published by Global Banking & Finance Review®
Posted on February 27, 2026
2 min readLast updated: February 27, 2026
Quick Summary
FINMA said its liquidation order for MBaer Merchant Bank AG is now effective after the bank withdrew its appeal, clearing the way for the Swiss watchdog’s measures. The move follows a U.S. FinCEN proposal to bar U.S. banks from maintaining correspondent accounts for MBaer over alleged illicit flows
FINMA says MBaer Merchant Bank liquidation order is now effective
Regulatory action and enforcement findings
Liquidation order becomes effective after U.S. pressure
Feb 27 (Reuters) - Swiss financial regulator FINMA said on Friday that a liquidation order for MBaer Merchant Bank AG was now effective after Washington threatened to cut the Swiss private bank's access to the U.S. financial system for breaching sanctions against Iran, Russia and Venezuela.
Appeal withdrawal clears the way for implementation
FINMA concluded enforcement proceedings against MBaer three weeks ago, but due to an MBaer appeal, which the bank withdrew on Friday, FINMA was previously unable to implement its own measures, it said.
Enforcement proceedings timeline
FINMA concluded enforcement proceedings against MBaer three weeks ago, but due to an MBaer appeal, which the bank withdrew on Friday, FINMA was previously unable to implement its own measures, it said.
FINMA cites anti-money laundering shortcomings
In the course of its proceedings, FINMA found that the bank did not have adequate measures in place to combat money laundering and enabled clients to circumvent official asset freezes, it added.
Asset freezes and sanctions circumvention concerns
In the course of its proceedings, FINMA found that the bank did not have adequate measures in place to combat money laundering and enabled clients to circumvent official asset freezes, it added.
Regulator assessment of severity and systemic risk
"The case is extremely serious," the regulator said.
"Through its conduct and inadequate organisation, (the bank)exposed itself and the Swiss financial centre to disproportionately high risks," FINMA added.
Reporting and editorial credits
(Reporting by Linda Pasquini, editing by Thomas Seythal)
Key Takeaways
- •Process update: FINMA can now implement liquidation after MBaer withdrew its appeal; FINMA had opened enforcement proceedings in 2024 and concluded they involved severe organisational/AML failures and sanctions-risk issues. (finma.ch)
- •U.S. pressure catalyst: FinCEN on Feb. 26, 2026 proposed a rule that, if finalized, would prohibit covered U.S. financial institutions from opening or maintaining correspondent accounts for MBaer, effectively threatening its access to dollar clearing. (fincen.gov)
- •Risk framing: FINMA said a large share of MBaer’s relationships were higher-risk (including findings that most received assets were from high-risk clients), underscoring how small banks can still pose outsized reputational and compliance risk to Switzerland’s financial center. (finma.ch)
References
Frequently Asked Questions about Liquidation order for MBaer Merchant Bank is effective, watchdog says
1What did FINMA say about the liquidation order for MBaer Merchant Bank?
FINMA said the liquidation order for MBaer Merchant Bank AG was now effective.
2Why did the liquidation order become effective now?
FINMA had been unable to implement its measures due to an appeal, which MBaer withdrew on Friday.
3What prompted the regulatory action mentioned in the report?
Washington threatened to cut the Swiss private bank's access to the U.S. financial system for breaching sanctions against Iran, Russia and Venezuela.
4What did FINMA find during its enforcement proceedings?
FINMA found the bank lacked adequate measures to combat money laundering and enabled clients to circumvent official asset freezes.
5How did FINMA characterize the seriousness of the case?
FINMA said the case was extremely serious and that the bank exposed itself and the Swiss financial centre to disproportionately high risks.
