Trump accounts closed after money-laundering concerns
US President Donald Trump
The disclosure came in response to a lawsuit filed against Capital One by one of Trump’s financial holding companies.
New York: Capital One closed more than 300 bank accounts linked to President Donald Trump and his businesses in 2021 after its anti-money laundering (AML) team flagged financial activity with characteristics associated with possible money laundering, the bank said in a court filing.
The disclosure came in response to a lawsuit filed against Capital One by one of Trump’s financial holding companies. Trump alleges that the bank illegally closed his accounts for political reasons following the January 6, 2021, attack on the US Capitol. Capital One has asked a court to dismiss the lawsuit.
“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 said in the filing. Trump has also sued JPMorgan Chase, alleging that it debanked him, his family and related businesses after he left office in 2021. Both banks have denied cutting ties with Trump for political reasons.
Capital One said it had no political motive in closing the accounts and that the decision was based on activity flagged by its AML specialists. The bank said it did not publicise the closure or its internal review and gave Trump’s businesses several months, including extensions, to find alternative banking services.
Trump’s legal team rejected Capital One’s account of events, saying the bank, along with other major financial institutions, had debanked Trump, his family and businesses for “blatantly political reasons”. It said Trump’s lawsuit would hold the bank accountable. Trump’s amended lawsuit, filed in July after the original case had remained dormant for months, alleged the bank had acted for political reasons. Capital One described the new allegations as lacking merit and based on “cherry-picked quotations.”
The dispute comes amid a wider conservative campaign against so-called debanking, in which financial institutions close accounts because customers are considered to pose financial, legal or reputational risks.
