{"id":23091,"date":"2024-07-25T17:18:47","date_gmt":"2024-07-25T17:18:47","guid":{"rendered":"https:\/\/sotnews.agency\/?p=23091"},"modified":"2024-07-25T17:57:10","modified_gmt":"2024-07-25T17:57:10","slug":"us-bank-mercury-to-close-accounts-of-african-startups","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=23091","title":{"rendered":"US Bank Mercury to Close Accounts of African Startups"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>1 Minute, 45 Second <\/div>\n\n <\/div>

News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https:\/\/newsghana.com.gh\/us-bank-mercury-to-close-accounts-of-african-startups\/<\/p>\n

San Francisco-based digital bank Mercury, which gained prominence as a banking partner for African startups following the closure of Silicon Valley Bank earlier this year, is set to terminate accounts for users in thirteen African countries by August 22, 2024.<\/strong><\/p>\n

The decision comes as part of new internal compliance measures affecting users across 37 countries.<\/p>\n

Emails obtained by TechCabal revealed that Mercury attributed the closures to updated account eligibility criteria, mainly targeting businesses with addresses in the affected African nations. Notably, African startups incorporated in Delaware will only be eligible for Mercury accounts if their founders reside in the United States.<\/p>\n

The affected countries include Burundi, Cameroon, Central African Republic, Democratic Republic of Congo, Republic of Congo, Liberia, Mali, Mozambique, Nigeria, Somalia, South Sudan, Sudan, and Zimbabwe.<\/p>\n

According to sources familiar with the matter, Mercury\u2019s move reflects a broader trend of heightened scrutiny of fintech partnerships with US banks, spurred by regulatory concerns following incidents at other fintechs like Silicon Valley Bank and Synapse.<\/p>\n

\u201cMercury\u2019s decision appears to be influenced by stricter Know Your Customer (KYC) processes imposed by its banking-as-a-service provider, Choice, due to compliance lapses related to money laundering and terrorism financing,\u201d stated an unnamed executive from a Nigerian fintech company.<\/p>\n

The banking restrictions have sparked concerns within the Nigerian tech community, where US-based banking solutions are crucial for managing dollar-denominated investments and operational funds.<\/p>\n

\u201cFor startups, maintaining US dollar accounts allows for easier management of international transactions and treasury functions,\u201d explained Tomiwa Aladekomo, founder of a media tech startup relying on Mercury. \u201cThis has become essential for Nigerian tech companies handling funding from local and foreign investors.\u201d<\/p>\n

In response to the closures, affected startups are exploring alternatives such as Brex, Ramp, Wise, and other fintech solutions that support international banking operations.<\/p>\n

News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https:\/\/newsghana.com.gh\/us-bank-mercury-to-close-accounts-of-african-startups\/<\/p>

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News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https:\/\/newsghana.com.gh\/us-bank-mercury-to-close-accounts-of-african-startups\/ San Francisco-based digital bank Mercury, which gained prominence as a banking partner for African startups following the closure… <\/p>\n","protected":false},"author":1,"featured_media":23131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-23091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/23091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23091"}],"version-history":[{"count":1,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/23091\/revisions"}],"predecessor-version":[{"id":23132,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/23091\/revisions\/23132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/23131"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}