Startup Bullettproof Ukraine makes bulletproof vests for volunteers and journalists. Founder Madina Katter can no longer settle outstanding accounts. The payment service provider has blocked your company’s business account.
The British payment service provider Wise has blocked the business account of the startup Bulletproof Ukraine. “We do not support transactions related to weapons, military and paramilitary goods and services,” says an email shared by Berlin-based founder Madina Katter on Linkedin. The reasoning suggests that the payment service provider classified the startup as an armaments producer.
Until recently, the company, founded in February 2022, manufactured bulletproof vests for volunteers and journalists in Ukraine. According to the company, around 600 bulletproof vests have been sold since March 2022.
The startup recently ceased operations. However, there are still outstanding bills to be paid. Until the startup finds a new financial service provider, the account suspension jeopardizes the last delivery of protective vests. “It won’t be that easy to find a suitable provider,” says Katter to the industry portal “Gründerszene”. After all, many financial institutions and investors shy away from putting money into companies that deal with war and the military.
The 26-year-old clearly rejects the accusation. Your company does not supply bulletproof vests to the military, only to civilian aid organizations and journalists in Ukraine. “We’re not fueling the war, if some people think so,” Katter told the portal. “People who do humanitarian work in crisis areas need protection. Our bulletproof vests ensure their safety.” In addition, check your startup in so-called background checks whether a person or organization is who they claim to be.
A Wise spokesman told ntv.de that the deactivation of an account is always the result of a thorough internal review. The company takes such decisions seriously and is open to review through an appeals process “to ensure we are taking a consistent and fair approach.” As a highly regulated financial institution, Wise cannot provide further details on individual cases as the financial service provider is bound by regulations that prohibit it from sharing certain information.
