Swiss‑based MBaer Merchant Bank, founded by Michael Bär in 2018, faced a sudden shutdown after the US Treasury labeled it a primary money‑laundering concern. Authorities cited more than $100 million funneled through the U.S. system for sanctioned actors linked to Iran and Russia.

Finma revoked MBaer's licence and ordered liquidation, citing serious organisational gaps and failure to meet anti‑money‑laundering standards. Roughly 80 % of the bank’s client base was deemed high‑risk, a fact first flagged by Swiss investigators in 2023.

Bär resigned early 2025, replaced by former Deutsche Bank executive Annett Viehweg. The case highlights gaps in Switzerland’s decade‑long effort to cleanse its financial sector and raises questions over the speed of regulatory action by Swiss authorities.

The collapse underscores the fragility of boutique banks operating across borders and the heightened scrutiny over banks that serve high‑risk clients. Investors now face tighter compliance expectations and a more cautious regulatory environment.