Mercury Bank, a digital bank headquartered in San Francisco, designed as bank for startups, has restricted the accounts of startups linked to the African continent, as the CEO, Immad Akhund, claimed that the restriction was due to ‘unusual activity’.
Upon further questioning, Mercury, which holds over 4 billion in customer deposits for its 40,000+ businesses in over 200 countries, told some of these startups that their accounts had been flagged and placed under review by its compliance team after it noticed some “unusual activity” and couldn’t provide further details until its review was complete.
“We don’t have a definite date for when this will be completed, but we will provide an update as soon as we have one. We’re prioritizing the review of your account with our bank partner. We do apologize for any inconvenience this may cause,” it said in another email.
Some founders and tech stakeholders have taken to Twitter to express their disappointment at Mercury’s decision to block these accounts without any concrete reason. For a number of these startups, Mercury’s restriction came at an inconvenient time — the end of the month — when major obligations such as salaries and taxes ought to be attended to; now, those will have to wait, the founders say
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