By Linda Pasquini
SWISS financial regulator FINMA said that a liquidation order for MBaer Merchant Bank AG was now effective.
It came after Washington threatened to cut the Swiss private bank’s access to the U.S. financial system for breaching sanctions against Iran, Russia and Venezuela.
FINMA concluded enforcement proceedings against MBaer three weeks ago, but due to an MBaer appeal, which the bank withdrew on Friday, FINMA was previously unable to implement its own measures, it said.
In the course of its proceedings, FINMA found that the bank did not have adequate measures in place to combat money laundering and enabled clients to circumvent official asset freezes, it added.
“The case is extremely serious,” the regulator said.
“Through its conduct and inadequate organisation, (the bank)exposed itself and the Swiss financial centre to disproportionately high risks,” FINMA added.
Yesterday, the Treasury Department proposed cutting MBaer bank off from the U.S. financial system. It claimed that the Swiss bank had supported illicit actors linked to Iran and Russia.
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
