Proposal of Special Measure Regarding MBaer Merchant Bank AG as a Financial Institution Operating Outside of the United States of Primary Money Laundering Concern
By Treasury Department, Financial Crimes Enforcement Network
AI Summary
- FinCEN proposes special measures against MBaer Merchant Bank AG due to money laundering concerns.
- Measures include prohibiting U.S. financial institutions from opening or maintaining correspondent accounts for MBaer, requiring reasonable steps not to process transactions involving MBaer, and applying special due diligence.
Texas Relevance
The article does not mention Texas, TX, TCUD, or any Texas-specific entities. The proposed measures are applicable to all U.S. financial institutions, including those in Texas, but the content is not specific to Texas credit unions.
Original Content
FinCEN is issuing a notice of proposed rulemaking, pursuant to section 311 of the USA PATRIOT Act, that finds MBaer Merchant Bank AG (MBaer), a financial institution based in Switzerland, to be of primary money laundering concern, and proposes imposing a special measure to: (1) prohibit U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, MBaer; (2) require U.S. financial institutions to take reasonable steps not to process a transaction for the correspondent account in the United States of a foreign banking institution if such a transaction involves MBaer; and (3) require U.S. financial institutions to apply special due diligence to their foreign correspondent accounts that is reasonably designed to guard against their use to process transactions involving MBaer.