Liquidation order for MBaer Merchant Bank is effective, Swiss watchdog says
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The US Treasury had threatened to cut the Swiss private bank’s access to the US financial system for breaching sanctions against Iran, Russia and Venezuela.
PHOTO: REUTERS
- Swiss regulator FINMA ordered MBaer Merchant Bank's liquidation after Washington threatened access to the US system for breaching sanctions.
- FINMA found MBaer lacked adequate anti-money laundering measures and enabled clients to circumvent official asset freezes.
- The regulator deemed the case "extremely serious," exposing the bank and Swiss financial centre to disproportionately high risks.
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BERN - Swiss financial regulator FINMA said on Feb 27 that a liquidation order for MBaer Merchant Bank was now effective after Washington threatened to cut the Swiss private bank’s access to the US 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 Feb 27, 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. REUTERS
