The Swiss Financial Market Supervisory Authority FINMA has confirmed that MBaer Merchant Bank AG will enter into liquidation after the bank withdrew its appeal against FINMA’s licence withdrawal and liquidation order. FINMA found serious, systematic shortcomings in anti-money laundering due diligence, administrative organisation and risk management, particularly in the handling of clients subject to Swiss or international sanctions, which enabled circumvention of official asset freezes. FINMA opened enforcement proceedings in 2024 and appointed an investigating agent following work on client groups linked to Russia-related sanctions or criminal proceedings. The investigation found that 80% of business relationships carried increased risks and that 98% of assets received most recently came from high-risk clients; the bank repeatedly ignored compliance recommendations without comprehensible reasons, systematically failed to adequately investigate the background to relationships and transactions, and in some cases did not meet AMLA reporting obligations or did so too late. The file also included cases where transactions were executed for clients on sanction lists or whose funds were frozen by domestic criminal authorities, and specific indications that the bank actively aided clients in circumventing asset freezes; FINMA concluded that licensing and organisational requirements were no longer met and appointed Prof. Daniel Staehelin and Dr Lukas Bopp of Kellerhals Carrard KIG Basel as liquidators. FINMA has opened four proceedings against individuals who may have been responsible for supervisory-law breaches linked to the matters under investigation. Separately, the US Financial Crimes Enforcement Network recommended measures under Section 311 of the USA PATRIOT Act and assessed the bank as a financial institution of primary money laundering concern, with the proposed measure undergoing public consultation.

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