Swiss private bank MBaer Merchant Bank AG has officially collapsed and been dissolved less than 24 hours after receiving severe sanctions from the United States.

• Main reason: U.S. Department of the Treasury ( via FinCEN ) applied Section 311 of the Patriot Act, accusing MBaer of being a “transit point” for sanctioned funds from Russia, Iran ( including money laundering support, terrorist financing related to the Islamic Revolutionary Guard Corps - IRGC and Quds Force ), as well as connections to Venezuela. The bank is alleged to have 98% of its assets from high-risk clients and 80% of its business relationships are opaque, seriously violating anti-money laundering and sanctions regulations.
• Immediate consequences: The U.S. cut off access to the USD financial system ( described as a “death sentence” for a private bank heavily dependent on USD ). On February 27, 2026, Swiss Financial Market Supervisory Authority ( FINMA ) ordered the urgent dissolution of MBaer. The entire board resigned, and operational control was transferred to the liquidation unit.
• Impact on customers: The bank manages approximately $6.38 billion in assets for about 700 clients ( as of the end of 2025 ). Customers are only allowed to withdraw a maximum of $130,000 ( equivalent in Swiss Francs ) due to foreign exchange transaction restrictions.
• Broader context: This is the rarest and most forceful case applied to a Swiss bank. U.S. Treasury Secretary Scott Bessent confirmed that they will “eliminate” banks facilitating illegal money flows to protect the USD system. Next week, U.S. officials are expected to work with Switzerland to strengthen cooperation and tighten controls on illegal financial activities. This move demonstrates a new partnership between the U.S. and Switzerland to protect the reputation of Zurich’s financial center.