US Bank Mercury to Close Accounts of Startups in Specific Countries, Including Nigeria, Effective August 22, 2024
US-based digital bank for startups, Mercury, has announced plans to close the accounts of startups located in certain countries, including Nigeria, effective August 22, 2024. This decision follows recent changes in the company’s account eligibility criteria.
According to a list of prohibited countries on the bank’s website, it revealed that it will no longer serve businesses from 15 African countries among a total of 37 nations. Additionally, it will no longer provide services to companies whose founders hold passports from Belarus, Cuba, Iran, North Korea, Syria, Ukraine, and Venezuela.
The African countries affected by this decision are Burundi, Cameroon, Central African Rep, DR Congo, Congo, Liberia, Mali, Mozambique, Nigeria, Somalia, South Sudan, Sudan, and Zimbabwe.
Affected startups were sent emails notifying them of the upcoming account closures, with Mercury expressing regret for any inconvenience caused and assured support during the transition period.
Part of the email reads,
“We support U.S. companies founded by people across the globe as well as founders and venture capital firms. However, we currently can’t open accounts for founders living in the following countries and regions”.
Customers have been advised to take necessary actions before the August 22 deadline, after which access will be limited to viewing account documents. Mercury’s decision underscores ongoing challenges faced by international startups navigating U.S. banking regulations, impacting businesses across diverse global regions.
