US Bank Mercury to close accounts of startups in 13 African countries after internal compliance changes
- Mercury, a San Francisco digital bank, will close the accounts of users in thirteen African countries by August 22, 2024.
- The new restrictions will affect users in 37 countries.
- The decision is due to recent changes in account eligibility and concerns over money laundering and terrorism financing regulations.
The decision by Mercury to close accounts in African countries has significant implications for African startups and the fintech ecosystem. It will force affected startups to find alternative banking solutions, potentially disrupting their operations and hindering their ability to raise capital. The concerns over money laundering and terrorism financing regulations highlight the challenges faced by fintech companies operating in high-risk countries.
