American Bank Mercury has stopped servicing accounts of Ukrainian entrepreneurs living in Ukraine due to changes in policy and difficulties with compliance standards. This decision caused concern in the Ukrainian business community.
Financial restrictions
Unexpected news for Ukrainian businessmen
Ukrainian entrepreneurs received unpleasant news from the American bank Mercury. The founder of Petcube, Yaroslav Azhniuk , shared information on LinkedIn that the bank is stopping servicing accounts of Ukrainians.
The notice refers to innovations in banking policy that prohibit the opening and maintenance of accounts citizens from seven countries, including Ukraine. In addition, Mercury will stop supporting companies whose founders have passports from Belarus, Cuba, Iran, North Korea, Russia, Syria and Venezuela. The accounts are scheduled to close on August 13, 2024.
Clarification from Mercury
Bank representatives provided an explanation regarding the situation. They clarified that the changes apply only to the founders of companies who live directly in Ukraine, and not to Ukrainians who do business in the United States.
Mercury has acknowledged an error in its Help Center, which previously incorrectly stated the opt-out cooperation with all clients who have a Ukrainian passport. The bank assured that it continues to serve Ukrainians who have business in the USA, but currently cannot work with companies whose founders are in Ukraine. The bank apologized for the misunderstanding caused by this error.
“To better understand the policy changes: although Ukraine is generally not subject to sanctions, some of its regions are still sanctioned. Previously, we used a regional approach to support as many clients as possible in Ukraine. However, it is becoming increasingly difficult to adhere to this policy while meeting our strict compliance standards," the bank's representatives said in their response.
Mercury promised to review this policy in the future and expressed hope that it could be changed.
Not an isolated case
Yaroslav Azhniuk emphasized that this is not the first time that Ukrainian entrepreneurs face similar difficulties in the American financial system.
Earlier this year, Chase Bank refused to make transfers to Ukraine from the American accounts of its customers . In January 2021, even before the start of the full-scale invasion of Russia, the financial service Robinhood blocked access to its site for users with Ukrainian IP addresses.
Since the start of the war, many American websites have also started blocking traffic from Ukraine, making them accessible only through VPNs.
Glossary
- Mercury is an American bank specializing in servicing startups and technology companies.
- Petcube is a Ukrainian company that develops gadgets for pets.
- Chase is one of the largest US banks, one of the "big four" banks in the country.
- Robinhood is an American financial technology company that provides online trading services.
- VPN (Virtual Private Network) is a technology that allows you to create a secure network connection when using public networks.
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Answers to questions
What changes occur in servicing of Ukrainian entrepreneurs by Mercury Bank?
Do these changes apply to all Ukrainians who have business in the USA?
Why did Mercury make such a decision regarding Ukrainian customers?
Does Mercury plan to review its policy regarding Ukrainian customers in the future?
Have Ukrainian entrepreneurs encountered similar problems before?
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Discussion of the topic – Mercury closes the accounts of Ukrainian entrepreneurs: what does this mean for business?
The American bank Mercury announced that it has stopped servicing the accounts of Ukrainian entrepreneurs. This news caused concern in the Ukrainian business environment and requires a detailed analysis of the reasons and consequences of such a decision.
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Oleksandr
This news is simply shocking! 😱 Does Mercury not understand that in this way they are making life difficult for Ukrainian entrepreneurs who are already suffering because of the war? This is a blow to our business and the economy as a whole.
Sophia
I agree with you, Oleksandr. But let's look at it from the other side. Perhaps this will force our entrepreneurs to look for alternative solutions and develop their own fintech industry? 🤔 Who knows, maybe this will be the impetus for the creation of a Ukrainian analogue of Mercury?
Maxim
Sophia, you are right! This could be a great opportunity for Ukrainian developers. Imagine a platform that would take into account all the peculiarities of our market and legislation. That would be incredible! 🚀
Isabella
Guys, did you pay attention to the fact that Mercury still continues to work with Ukrainians who have business in the USA? Maybe this is a hint that we should focus more on the international market? 🌍
Viktor
Oh, well, these are your 'opportunities' and 'perspectives' again. Don't you see that this is just another blow to our business? Instead of dreaming about some platforms out there, it would be better to think about how to survive in these conditions. All this is simply ridiculous and pointless.
Oleksandr
Viktor, I understand your frustration, but you can't give up. Yes, the situation is difficult, but we have to find a way out. Maybe we should contact our IT associations? They could raise this issue at the international level. 💪
Sophia
I support Oleksandr! And I also think that we should use social networks more actively to draw attention to this problem. Maybe start a flash mob or a petition? 📢 This could force Mercury to reconsider its policy.
Maxim
Friends, how can we unite with entrepreneurs from other countries who have fallen under this ban? Together we could create a powerful movement and attract the attention of the world community. Unity is our strength! 🤝