US Moves to Block Swiss Bank Over Alleged Iran-Russia Money Flows

The United States has proposed to sever a small Swiss bank from access to the US financial system over allegations that it facilitated illicit money flows linked to Iran and Russia.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a proposed federal regulation that, if finalized, would prohibit US financial institutions from doing business with MBaer Merchant Bank AG . The bank has no connection with the larger Swiss bank Julius Baer.

Authorities allege that MBaer funneled over USD 100 million through the US financial system on behalf of criminal actors tied to Iran and Russia. The Treasury described the bank as a critical access point to US dollar transactions for high-risk entities.

Founded in 2018, MBaer is a small and relatively new institution. A 2020 profile showed it held around USD 245 million in assets , ranking it as the 200th largest bank in Switzerland. Despite its size, regulators say its operations indicate significant exposure to alleged illicit financial activity.

US officials accuse the bank of facilitating money laundering, corruption, and terrorist financing , including transactions linked to Russian criminal networks and Iran’s Islamic Revolutionary Guard Corps (IRGC), which is designated by the US as a terrorist organisation.

In its statement, Treasury said the bank operated as a “critical access node to the US dollar for a wide variety of illicit actors,” warning that such activity threatens the integrity of the US financial system and national security.

Treasury Secretary Scott Bessent said banks should understand that the department will use its authorities to protect the US financial system .

The action comes amid broader US sanctions targeting entities supporting Iran’s government, ballistic missile programme, drone production, and illicit oil trade. The move also coincides with indirect talks between US and Iranian officials in Geneva, mediated by Oman.

A spokesperson for the bank was not immediately available for comment.