Key Update for customers in relation to payments and transfers
MBaer Merchant Bank AG in Liq. ("MBaer") has found a solution for the disbursement of customer balances and the transfer of securities held in custody for customers. This allows us to transfer the cash balances and securities of those customers whose Know Your Customer (KYC) files have been reviewed and approved by the liquidator from a compliance perspective. All banks that transfer cash or securities on MBaer's behalf to the third-party bank provided by the customer, require us to conduct an in-depth KYC review of our customers and to document this process. The transfer is therefore handled on a case-by-case basis and takes a considerable amount of time.
In this context, we would like to highlight the following key updates:
- The payout limitation of CHF 100,000 is lifted. The entire customer balance and all securities can and should be transferred.
- MBaer is now able to process cash payouts in CHF, EUR, GBP and AED.
- Funds and securities can now be transferred not only to banks in Switzerland or Liechtenstein, but also to financial institutions in numerous other approved countries, as specified in a separate country list (see Appendix 1 to the detailed information letter, which was sent to each client individually and is also available via the link below).
- A new, more detailed instruction form has been developed for processing the payment or securities transfer (see Appendix 2 to the aforementioned information letter).
Dear Customer
We would like to provide you with an important update regarding the ongoing liquidation of MBaer Merchant Bank AG in Liquidation ("MBaer").
1. Key Updates
MBaer has found a solution for the disbursement of customer balances and the transfer of securities held in custody for customers. This allows us to transfer the cash balances and securities of those customers whose Know Your Customer (KYC) files have been reviewed and approved by the liquidator from a compliance perspective. All banks that transfer cash or securities on our behalf require us to conduct an in-depth KYC review of our customers and to document this process.
In this context, we would like to highlight the following key updates:
- The payout limitation of CHF 100,000 is lifted.
- MBaer is now able to process cash payouts in CHF, EUR, GBP and AED.
- Transfers of funds and securities may now be made not only to banks in Switzerland or Liechtenstein, but also to financial institutions located in other approved jurisdictions, as set out in the attached country list (enclosure 1).
2. Transfers of funds may be executed subject to the following conditions:
- One transfer per currency per client
All cash balances of a client in the same currency must be transferred in a single payment.
- Transfer to an account in the client’s own name
Transfers are only possible to an account in the same client’s name. Payments to third parties are generally not permitted.
- Transfer to an approved jurisdiction
Payments may be made to financial institutions located in Switzerland or another approved jurisdiction (please refer to the country list in enclosure 1).
- Completion of KYC review
All transfers are subject to a detailed KYC file review by MBaer's Compliance team, followed by the liquidators' Compliance team, in accordance with the requirements of the Swiss Anti-Money Laundering Act (AMLA) and the Anti-Money Laundering Ordinance of the Swiss regulator FINMA (AMLO-FINMA), as well as a thorough review of the files from a sanctions laws perspective. Transactions will only be executed after successful completion of these checks.
- Confirmation by the executing bank
The executing bank must confirm to MBaer in advance that it is able to process the transactions related to a particular customer.
- Completed transfer of securities
Where securities are held with MBaer, all securities must generally first be transferred to the client’s custody account with another eligible financial institution before related cash transfers can be completed. All conditions stipulated above are also relevant for transfers of securities.
3. Action required
3.1 Provide or amend your payment / securities transfer instructions
You are invited to provide your account details with an eligible financial institution in the currencies mentioned (CHF / EUR / GBP / AED), if these have not yet been provided to MBaer. In this respect, please note the afore-mentioned conditions applicable to the receiving bank.
Should you wish to do so, you may amend any instructions you have already provided to us. Enclosed you will find an amended transfer instruction form (enclosure 2), which allows you both to request payment of your cash balances and to instruct the transfer of your securities.
The clients who have already submitted original payment / securities transfer instructions and would like to provide additional account information or amend the previous instructions, may deliver the new instructions by email (as scan of an instruction signed in a legally binding manner). If no original payment / securities transfer instructions have been submitted to MBaer yet, the instruction shall be delivered in original (with a wet-ink signature).
In case you hold securities with MBaer, please ensure that MBaer receives the instruction for the transfer of securities. For technical reasons, cash payouts may generally be effected only after your securities are fully transferred from MBaer.
Please be advised that we will terminate your entire business relationship with MBaer immediately upon completion of the transfer of your cash balances and securities, subject to the applicable fees.
3.2 Confirm your receiving bank's readiness
Please clarify with your receiving bank in advance whether it will accept the funds or securities currently held with MBaer. MBaer cannot be held responsible if this is not the case or if the execution of the transfer in accordance with your instructions fails. Any costs incurred as a result of a rejection and necessary repeating of the execution will be charged to you.
3.3 Confirm consent for KYC document sharing
To facilitate the transfer of funds and securities and to obtain the necessary approval from the executing Swiss bank, we would like to provide the KYC memo prepared by the liquidators' team (based on MBaer’s KYC documentation), as well as any additional information and documents required by the executing bank (e.g., Form A/K/S/T).
We are convinced that this is in your best interest. If you do NOT agree to the handover of the KYC memo prepared (or still to be prepared) by the liquidator for your client relationship with MBaer, as well as any additional information and documents required by the executing bank, please inform us accordingly within 10 business days of the date of this letter.
4. Important notes
We would like to point out that this update information does not mean that your individual KYC file has already been reviewed and approved by the liquidator. The review of MBaer’s client relationships is being conducted in stages and will take some further time. However, we can assure you that the review is being conducted with high priority. As soon as the liquidator has approved your case, you will be notified by MBaer.
If you have any further questions, please contact your Relationship Manager. Alternatively, you may reach us at info@mbaerbank.com. We sincerely thank you for your understanding and patience.
Kind regards,
MBaer Merchant Bank AG in liq.
The Liquidators
Enclosures mentioned
