US Threatens Swiss Bank Over Ties to Iran, Russia

The Treasury Department on Thursday threatened to block MBaer Merchant Bank AG from accessing the U.S. financial system, accusing the Swiss institution of maintaining ties to sanctioned Iranian and Russian actors.

The Treasury Department said that MBaer and its employees enabled corruption tied to Russian money laundering operations and supported money laundering and terrorist financing for Iran's Islamic Revolutionary Guard Corps and its Quds Force.

The department said it is seeking to amend Financial Crimes Enforcement Network rules to block U.S. financial institutions from opening or maintaining accounts for MBaer.

Such a restriction would effectively bar the bank from accessing dollar-denominated transactions routed through the United States.

If executed, the action would represent the most severe step the Treasury Department can take against a foreign bank, effectively crippling MBaer's ability to conduct transactions involving U.S. dollars and access the American financial system.

"MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia," Treasury Secretary Scott Bessent said in a statement. "Banks should be on notice that the U.S. Treasury will aggressively protect the integrity of the U.S. financial system using the full force of our authorities."

Meanwhile, Switzerland's financial regulator has also taken action against the bank. According to Swiss media reports, the Swiss Financial Market Supervisory Authority — known as FINMA — recently wrapped up enforcement proceedings involving MBaer.

FINMA said the bank violated money laundering prevention and risk management standards, particularly in matters involving sanctions compliance.

According to a release, the regulator has assigned an audit officer to "monitor" the bank while its appeal process plays out and confirmed it is coordinating with FinCEN.

The warning to MBaer comes as Washington ramps up economic pressure on both Tehran and Moscow. In recent weeks, U.S. officials have broadened sanctions aimed at cutting off revenue streams — especially oil sales — that American officials say bankroll military initiatives and other destabilizing activities.

On Wednesday, the Treasury Department announced a fresh round of sanctions targeting Iranian individuals, companies, and vessels accused of enabling illicit oil exports and contributing to Iran's ballistic missile program.

The measures were unveiled just one day before indirect talks over Iran's nuclear program resumed in Geneva. The diplomatic effort is unfolding against the backdrop of an expanded U.S. military presence in the region and warnings that force remains an option if negotiations collapse.

Oman's foreign minister, Badr Albusaidi, said discussions between U.S. and Iranian representatives produced "significant progress," adding that more meetings are scheduled.

"We will resume soon after consultation in the respective capitals," Albusaidi wrote on X. "Discussions on a technical level will take place next week in Vienna.

"I am grateful to all concerned for their efforts: the negotiators, the IAEA, and our hosts the Swiss government."