The US may isolate Swiss bank MBaer from the dollar system: what is known
27 February 16:40
The US Treasury Department may cut off Swiss private bank MBaer from the American financial system due to suspicions of servicing accounts linked to Russia, Iran, and Venezuela.
This was reported by Reuters , citing US officials, according to "Komersant Ukrainian".
This involves the possible use of mechanisms that would effectively deprive the bank of access to dollar settlements.
What the bank is accused of
According to an investigation by the US Treasury Department, MBaer allegedly helped Russian and Venezuelan clients circumvent sanctions and launder money.
Separately, the US claims that the financial transactions may have benefited entities linked to Iran’s Islamic Revolutionary Guard Corps.
Treasury Secretary Scott Bessent said that more than $100 million was transferred through the US financial system “in the interests of entities involved in illegal activities.”
FinCEN data
The Financial Crimes Enforcement Network (FinCEN) believes that MBaer may have used shell companies to conceal transactions, including those related to the sale of sanctioned Venezuelan oil through the state-owned company PDVSA.
It is also alleged that the bank may have helped launder money for individuals with political connections, particularly those linked to the Kremlin.
Switzerland’s position
The Swiss financial regulator FINMA announced the completion of one enforcement proceeding and the continuation of an investigation into possible money laundering and sanctions evasion. An auditor has been appointed to the bank.
MBaer was founded in 2018 by businessman Michael Bayer. In 2023, he stated that the bank had approximately CHF 3.5 billion in assets under management.
What does “disconnection from the dollar” mean?
Restricting access to the US financial system will effectively mean a ban on US companies opening accounts with the bank or conducting transactions through it.
Since a significant portion of international settlements are conducted in US dollars, this could seriously complicate MBaer’s international activities and call its business model into question.
The US regularly uses access to the dollar system as a tool for sanctions pressure. For financial institutions, even the threat of such a move can have significant reputational and operational consequences.
A final decision on MBaer has not yet been announced, but the very fact of public accusations already puts the bank under close scrutiny by international regulators and partners.
