US proposes severing Swiss bank from financial system over alleged Iran, Russia links

U.S. Treasury Secretary Scott Bessent attends a Senate Banking, Housing and Urban Affairs Committee hearing on the Financial Stability Oversight Council's annual report to Congress, on Capitol Hill in Washington, D.C., U.S., February 5, 2026. REUTERS/Jonathan Ernst

WASHINGTON, Feb ⁠26 (Reuters) - The U.S. Treasury Department on ⁠Thursday proposed a rule that, ‌if finalized, would sever MBaer Merchant Bank AG's access to the U.S. financial system on ​the grounds the Swiss ⁠bank had supported ⁠illicit actors linked to Iran and Russia.

The ⁠Treasury ‌alleged MBaer and its employees had facilitated corruption linked ⁠to Russian money laundering as well ​as money ‌laundering and terrorist financing on behalf ⁠of ​Iran's Islamic Revolutionary Guard Corps and its Quds Force, which are sanctioned ⁠by the U.S.

"MBaer has funneled ​over a hundred million dollars through the U.S. financial system on behalf of ⁠illicit actors tied to Iran and Russia," Treasury Secretary Scott Bessent said in a statement. "Banks should be on ​notice that the U.S. ⁠Treasury will aggressively protect the integrity ​of the U.S. financial ‌system using the full ​force of our authorities."

(Reporting by Daphne Psaledakis;Editing by David Ljunggren)