MBaer Merchant Bank AG: FinCEN Section 311 action and FINMA liquidation – Important compliance lessons for Swiss financial institutions
MBaer Merchant Bank AG: FinCEN Section 311 action and FINMA liquidation –…
<p>In February 2026, U.S. and Swiss authorities took consecutive measures affecting MBaer Merchant Bank AG, a Zurich-based bank. The U.S. Financial Crimes Enforcement Network issued a notice under Section 311 of the USA PATRIOT Act proposing special measure five, which, if adopted, would have effectively severed MBaer's access to the U.S. financial system via correspondent and payable-through restrictions.</p>
<p>In parallel, FINMA announced supervisory measures culminating in the license withdrawal and liquidation of that bank, including procedural developments before the Swiss Federal Administrative Court.</p>
<p>Taken together, these developments provide a highly practical case study for Swiss institutions on how AML control and sanctions compliance weaknesses, high-risk client exposure and cross-border market-access dependencies may converge and escalate quickly. The case also illustrates the interplay between foreign regulatory action and Swiss supervisory proceedings.</p>