FINMA Revokes MBaer Merchant Bank License Over Systemic AML Failures

Switzerland's Financial Market Supervisory Authority (c) has concluded its enforcement proceedings against MBaer Merchant Bank AG. The regulator has withdrawn the bank's license and ordered its liquidation.

FINMA determined the bank had serious, systematic shortcomings in anti-money laundering (AML) compliance, administrative organization, and risk management. Specifically, it found failures in handling clients sanctioned by Switzerland or internationally. The bank enabled clients to circumvent official asset freezes.

The bank had appealed FINMA's original decision, temporarily suspending the liquidation order. It withdrew that appeal today, making FINMA's orders immediately effective. FINMA has appointed Prof. Daniel Staehelin and Dr. Lukas Bopp of Kellerhals Carrard KIG Basel as liquidators.

The U.S. Financial Crimes Enforcement Network (FinCEN) yesterday proposed designating MBaer Merchant Bank as a "primary money laundering concern" under the USA PATRIOT Act. That measure is undergoing public consultation.

FINMA stated the bank lacked sufficient AML measures and an adequate risk-monitoring organization. Its conduct exposed both the institution and the Swiss financial center to disproportionate risks. FINMA cited violations of AML rules, organizational requirements, and standards for irreproachable business conduct.

The regulator has also opened proceedings against four individuals potentially responsible for these supervisory law breaches.

MBaer Merchant Bank AG, based in Zurich, served private clients and engaged in transaction banking. At the end of 2025, it held client assets of CHF 4.9 billion, maintained nearly 700 client relationships, and employed over 60 staff.