Swiss Financial Regulator Enforces Liquidation of MBaer Merchant Bank

FINMA orders the liquidation of MBaer Merchant Bank AG following sanctions violations related to Iran, Russia, and Venezuela. The bank failed to implement adequate anti-money laundering measures, exposing the Swiss financial system to high risks. The enforcement follows the withdrawal of the bank's appeal.

In a decisive move, Swiss financial regulator FINMA has enforced the liquidation of MBaer Merchant Bank AG. The development comes after the bank violated international sanctions involving Iran, Russia, and Venezuela.

FINMA had previously concluded enforcement proceedings against the bank, determining it lacked adequate anti-money laundering procedures. The bank's actions allowed clients to circumvent asset freezes, significantly increasing risks to the Swiss financial sector.

The liquidation order took effect after MBaer withdrew its appeal against FINMA's measures. FINMA described the case as extremely serious, emphasizing the need for proper organizational conduct to safeguard the Swiss financial centre from high risks.

(With inputs from agencies.)