Mercury Prohibited Countries (and What to Use Instead)

If you've been told your home country is on Mercury's restricted list, you're not out of options, you just need a different route to a US business bank account.

Mercury is one of the most popular banking partners for non-US founders because it lets you open a US business account fully remotely, without flying to the States or holding an SSN. But Mercury does not accept founders from every country. If you've started an application and hit a wall, or read a forum thread warning that your country is 'prohibited,' this article explains what that actually means and what to do instead.

Why banks maintain a prohibited country list

Every US bank, including fintech partners like Mercury that work through partner banks, has to comply with the Bank Secrecy Act, OFAC sanctions rules, and its own risk appetite set by its banking partner and regulators. That means two things happen in practice.

First, there is a hard legal floor. Banks cannot knowingly open accounts for people or entities connected to countries or regions under comprehensive US sanctions. This currently includes places like Cuba, Iran, North Korea, Syria, and Russia, along with specific sanctioned regions such as Crimea, Donetsk, and Luhansk. No fintech, however founder friendly, can override this. It is federal law, not a Mercury policy choice.

Second, there is a softer, risk-based layer above that legal floor. Banks and their partner institutions also choose not to serve certain countries because of higher money laundering risk, weaker anti-fraud infrastructure in that country, past abuse patterns, or because their underlying banking partner does not want the exposure. This second layer is where most of the confusion comes from, because it changes over time and isn't required by law. It's Mercury's (or its partner bank's) commercial decision, and it can be updated without much notice.

What 'prohibited' actually refers to

When people say 'Mercury prohibited countries,' they usually mean the combined list, sanctioned jurisdictions plus additional countries Mercury has decided are too high risk to onboard. The trigger is usually tied to where the founder is a resident or citizen, sometimes where the company's declared business activity takes place, rather than simply the country your passport happens to be from if you live and operate elsewhere.

This is an important distinction. Two founders with the same passport can get different outcomes depending on where they currently live, where their business operates, and what industry they're in. High-risk industries (crypto, gambling, adult content, arms, some money services) get extra scrutiny everywhere, independent of country.

How to check the current list

Because the risk-based portion of the list changes, the only reliable source is Mercury's own published restricted countries page, checked at the time you apply. Don't rely on old blog posts, old Reddit threads, or a friend's experience from a year ago. Two things worth doing before you apply anywhere:

• Confirm your country of residence status directly on the provider's current list, not a cached or third-party summary.
• If you're unsure whether your situation counts as 'from' a restricted country (dual citizenship, residency abroad, remote work from a third country), ask before you apply rather than risk a rejection that can complicate future applications.

If you're restricted from Mercury, here are the realistic alternatives

A rejection from one provider is not a rejection from US banking generally. Several other remote-friendly options exist, each with different country coverage and requirements.

Because each provider has its own country list and its own compliance appetite, being restricted at Mercury does not automatically mean you'll be restricted elsewhere. It's common for founders to try two providers before landing one that fits their specific residency and business setup.

Where Founders Credit fits in

This is exactly the kind of friction Founders Credit exists to remove. We set up the LLC, get the EIN directly from the IRS, obtain your ITIN if you need one, and then match you to a banking partner that actually accepts founders from your country and industry, rather than having you find out the hard way after a rejected application. The whole process runs remotely, and we stay involved if your banking situation needs revisiting later as providers update their lists.

Glossary

OFAC: The US Office of Foreign Assets Control, which enforces sanctions against specific countries, regions, and individuals. Banks cannot legally serve sanctioned parties.

KYC (Know Your Customer): The identity verification process banks run before opening an account, covering passport checks, proof of address, and source of funds.

EIN (Employer Identification Number): A federal tax ID issued by the IRS to your LLC, required to open a US bank account and file taxes, obtainable by non-residents via Form SS-4.

ITIN (Individual Taxpayer Identification Number): A tax ID for individuals who are not eligible for a Social Security Number, commonly needed by non-resident founders for certain tax filings.

Correspondent banking: The network of relationships banks use to move money internationally. Some countries have limited correspondent banking access, which is part of why certain jurisdictions are treated as higher risk.

Form 5472: An annual information return foreign-owned single-member LLCs must file alongside a pro-forma 1120, even with zero income. Missing it carries a $25,000 penalty.

The bottom line

Mercury's prohibited country list is really two lists stacked together: a legal sanctions floor that applies everywhere, and a risk-based layer that Mercury and its banking partner adjust over time. If you're affected, check the current list directly, don't assume it's permanent, and know that Wise, Relay, and traditional banks remain viable paths depending on your country and business type. A rejection is a data point, not a dead end.

Frequently asked questions