On February 26, 2026, FinCEN issued a proposed rule that, if finalized, would sever MBaer Merchant Bank AG (MBaer’s) access to the U.S. financial system as a result of its financial support to illicit actors linked to Russia and Iran. If finalized, the proposed rule would prohibit covered U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, MBaer.
Secretary of the Treasury Scott Bessent said the following in a statement:
“MBaer has funneled over a hundred million dollars through the U.S. financial system on behalf of illicit actors tied to Iran and Russia. 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.”
According to the Treasury’s press release, MBaer and its employees have enabled money laundering and illicit finance activities, including by facilitating corruption linked to Russian money laundering and money laundering/terrorist financing on behalf of Iran-aligned foreign terrorist organizations, including the Islamic Revolutionary Guard Corps and its Quds Force. MBaer serves as an important access point to the U.S. dollar for various illegal activities, which poses a threat to U.S. national security and weakens the integrity of the U.S. financial system.
Read the Treasury’s press release here.
The proposed rule can be found here.