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SFMA appoints audit agent at MBaer Merchant Bank AG

SFMA appointed an audit agent at MBaer Merchant Bank AG while related enforcement proceedings were pending before the Federal Administrative Court.

The US Financial Crimes Enforcement Network announced that it considers MBaer Merchant Bank AG a financial institution of primary money laundering concern. SFMA is in contact with both the bank and FinCEN. Enforcement proceedings previously concluded by SFMA were pending before the Federal Administrative Court, and SFMA appointed an audit agent at the bank.

Three weeks earlier, SFMA had concluded enforcement proceedings against MBaer Merchant Bank AG concerning anti-money laundering rules and sanctions-related risk management. The ruling was not legally binding because the bank had appealed to the Federal Administrative Court. The court ordered accompanying measures for the duration of the proceedings, and SFMA could not implement its own measures at the bank while the appeal was pending.

FinCEN designated MBaer Merchant Bank AG as a financial institution of primary money laundering concern and proposed measures under Section 311 of the USA PATRIOT Act. The proposal would prohibit US banks from opening or maintaining correspondent accounts for MBaer Merchant Bank AG or on its behalf. The proposed measure is under public consultation.

SFMA is in contact with FinCEN on the basis of the Financial Market Supervision Act and a bilateral memorandum of understanding between the authorities.