FINMA appoints audit monitor at MBaer Merchant Bank
MBaer must operate under external AML and sanctions-risk monitoring during its appeal
FINMA
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Change
On 26 February 2026, FINMA appointed an audit agent to monitor MBaer Merchant Bank AG while the bank appeals FINMA’s enforcement ruling on anti-money laundering and sanctions-risk management.
Why it matters
MBaer is now subject to external supervisory monitoring while its appeal is pending before the Swiss Federal Administrative Court. The appointment limits the bank’s ability to manage remediation internally because senior management, compliance and risk teams must cooperate with the audit agent and court-ordered accompanying measures. The case also carries cross-border correspondent-banking risk because FinCEN has proposed restricting US banks from maintaining correspondent accounts for MBaer.
Implications
- — MBaer senior management must provide the FINMA-appointed audit agent with access to the bank’s operations, records and remediation activity during the appeal — failure to cooperate risks further supervisory escalation.
- — MBaer AML, sanctions and risk-management teams must operate under external monitoring while the Federal Administrative Court’s accompanying measures remain in force — failure to align remediation with the monitoring process may weaken the bank’s position during the proceedings.
- — Banks with correspondent or counterparty exposure to MBaer must review the proposed FinCEN Section 311 restrictions before maintaining US-linked correspondent activity — failure to assess exposure may leave relationships vulnerable if the proposed restrictions take effect.
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