Mercury Bank to Close All Accounts Associated with Nigeria on August 22

Mercury Bank has announced that it will be closing all accounts associated with Nigeria by August 22, 2024. This move places Nigeria on a list of countries prohibited from the bank’s services, joining Afghanistan, Iraq, Somalia, South Sudan, Ukraine, Liberia, Syria, and 30 others.

Mercury Bank, known for its tech-driven banking solutions, has updated its website to reflect this new policy. The bank, which supports U.S. companies founded by individuals from around the globe, stated it currently cannot open accounts for founders residing in prohibited countries and regions.

This prohibition means that businesses and individuals in Nigeria will no longer be able to open new accounts or conduct transactions through Mercury Bank, impacting a substantial number of Nigerian entrepreneurs and startups who have relied on the bank for their financial operations.

Seye Bandele, CEO of PaidHR, a Nigeria-based HRTech startup, highlighted the significance of Mercury Bank for Nigerian founders. “Mercury provides banking services for Delaware C companies, which is usually a requirement for the kind of investment that most founders raise money on,” Bandele explained. “Mercury provided those banking services whether you’ve been to the US or not, from the US or not. We use something called a registered agent to register your company in the US, and then that registered agent will give you a physical address that the bank uses to create your bank account.”

Bandele acknowledged that while Nigerians are adversely affected by the policy, Mercury has been subject to numerous regulatory and compliance checks by U.S. authorities. “So whatever the reasons for their policy, I understand it’s just how Nigerians are caught on the wrong side of it,” he said.

John Opeyemi, a Mercury Bank customer, expressed his displeasure on X (formerly Twitter), recounting that the bank had requested some documents a few weeks ago, which he promptly provided, only to receive a notice of his account closure shortly after. The message from Mercury Bank read, “We regret to inform you that, due to recent changes in how we determine account eligibility, we are no longer able to support accounts for businesses with associated addresses located in these countries. Please know that this decision was not made lightly. We apologize for the disruption this may cause, and our team is here to help you work through the account closure over the next few weeks.”

The closure will officially take effect on August 22, 2024. Other customers have also taken to X to share their reactions and concerns about the impending account closures.