The Financial Market Supervisory Authority (FINMA) of Switzerland today provided an update on its proceedings against MBaer Merchant Bank AG.

In the course of proceedings conducted against MBaer Merchant Bank AG, FINMA has ascertained serious, systematic shortcomings in terms of compliance with due diligence obligations in relation to combating money laundering, in its administrative organisation and in the bank’s risk management.

These shortcomings related in particular to how clients who were sanctioned by Switzerland or internationally were dealt with. The bank thus enabled clients to circumvent official asset freezes.

The proceedings, which were pending until recently before the Federal Administrative Court as the result of an appeal by the bank, were concluded three weeks ago by FINMA. It had withdrawn the licence of MBaer Merchant Bank AG and consequently ordered it to enter into liquidation.

A suspensive effect was granted to the bank’s appeal, and FINMA was prohibited by the court from communicating and enforcing the liquidation.

The bank today withdrew its appeal against the FINMA proceedings, meaning that FINMA’s orders now become effective. FINMA has appointed Prof. Daniel Staehelin and Dr Lukas Bopp, both of Kellerhals Carrard KIG Basel, as liquidators.

Yesterday, the US Financial Crimes Enforcement Network (FinCEN) recommended measures in accordance with Section 311 of the USA PATRIOT Act on combating money laundering and the financing of terrorism and rated MBaer Merchant Bank AG as a financial institution of primary money laundering concern. The measure proposed by FinCEN is currently undergoing public consultation.

The bank did not have sufficient measures in place to combat money laundering and did not have an appropriate organisation to adequately monitor the risks. Through its conduct and inadequate organisation, it has exposed itself and the Swiss financial centre to disproportionately high risks. In doing so, it not only seriously violated the supervisory provisions on combating money laundering and the organisational rules (risk management), but also the requirements for guaranteeing irreproachable business conduct.

Finally, FINMA has opened proceedings in four cases against individuals who may have been responsible for breaches of supervisory law in connection with the matters under investigation.

MBaer Merchant Bank AG is a bank based in Zurich that operates in the private client and transaction banking segments. At the end of 2025, the bank held client assets totalling CHF 4.9 billion, maintained almost 700 client relationships and had over 60 employees.