The US Treasury Department is taking steps to ban American financial institutions from doing business with MBaer Merchant Bank AG, a small Swiss bank.

The bank is accused of moving more than $100 million in illegal funds on behalf of Iranian and Russian criminal groups.

This bank is not related to the major Swiss financial institution, Julius Baer.

Although MBaer is a very small bank (it only manages about $245 million), the US Treasury believes a large portion of its total business is tied to money laundering. They argue that this bank has become a dangerous gateway for these criminal groups to access the US dollar.

US Treasury Secretary Scott Bessent stated that the government will use all its power to protect the integrity of the American financial system.

This move comes as part of the Trump administration’s broader strategy to put financial pressure on Iran. While these sanctions are being prepared, US officials are also currently involved in negotiations regarding Iran in Geneva.