Capital One says it shut down hundreds of bank accounts tied to President Donald Trump and his businesses in 2021 because of an internal anti-money laundering review, not political bias, according to a court filing made public July 31.
The bank made the disclosure in a motion asking a federal judge to dismiss Trump’s lawsuit, which accuses Capital One of “debanking” him and his companies for political reasons after the Jan. 6, 2021, riot at the U.S. Capitol. Capital One did not accuse the Trump Organization of money laundering, but the bank’s lawyers said the closures followed a monthslong review by its anti-money laundering team.
“The closures were the result of months of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance,” the bank’s lawyers wrote, adding that Capital One “never publicized” the decision and gave the Trump family months, including several extensions, to move to a new bank.
A spokesperson for the Trump organization called the bank’s explanation “completely baseless” and accused Capital One of scrambling to invent cover for what the family maintains was a political hit.
“Capital One’s after-the-fact attempt to justify its debanking of Trump related accounts is completely baseless,” the spokesperson said. “Following the events of January 6, 2021, Capital One manufactured a post hoc rationale by selectively resurrecting a handful of isolated transactions that had occurred years earlier and had never once been identified as cause for concern.”
Trump’s trust, his companies and his son Eric Trump sued Capital One last year, alleging the bank canceled roughly 385 accounts tied to the family for political reasons in the aftermath of Jan. 6. The lawsuit accused Capital One of caving to “unsubstantiated, ‘woke’ beliefs” and cutting ties with Trump because “the political tide at the moment favored doing so.”
The account closures came only months after Capital One agreed to pay a $390 million penalty to the Treasury Department’s Financial Crimes Enforcement Network for an ineffective anti-money laundering program, a timeline fueling skepticism among the president’s allies about the bank’s rationale.
Trump has filed a similar debanking lawsuit against JPMorgan Chase, which is still pending. JPMorgan has said the suit has “no merit” and that it closes accounts that pose “legal or regulatory risk.”
U.S. District Judge Roy Altman, a Trump appointee, dismissed Trump’s original complaint earlier this year for failing to state a legal claim but allowed an amended version last month.
Read more Study Finds Daily Marijuana Use Surpasses Daily Alcohol Consumption Among US Adults
