Capital One closed bank accounts held by former President Donald Trump in mid-2021, flagging financial activity that exhibited characteristics of money laundering, according to a court filing by the bank. The bank stated that 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."
This disclosure is in response to a lawsuit filed by one of Trump's financial holding companies shortly after he left office. Trump's legal team alleges that Capital One, along with JPMorgan Chase, illegally closed his accounts for political reasons, particularly following the Jan. 6 attacks on the U.S. Capitol. Capital One is seeking to dismiss the lawsuit.
Trump has sued both Capital One and JPMorgan Chase, accusing them of "debanking" him and his businesses after his presidency. Debanking is defined as banks closing customer accounts due to perceived financial, legal, or reputational risks. Both banks have denied that their decisions were politically motivated.
JPMorgan Chase stated it does not close accounts for political reasons but rather when they present "legal or regulatory risk" or "with or without cause." Trump's legal team has characterized the bank's explanations as meritless, based on "cherry-picked quotations."
A spokesperson for Trump's legal team asserted that "Capital One, along with other major banks, de-banked President Trump, his family, and his businesses for blatantly political reasons." The spokesperson added that Trump's lawsuit holds Capital One accountable for its "disgraceful conduct."
Capital One noted in its filing that it did not publicize the termination of Trump's accounts and allowed "several months (and granted several extensions) to find new banking services."
The accounts in question, numbering over 300, were associated with various Trump-branded businesses, including golf courses and a winery. Trump had maintained a banking relationship with Capital One for more than a decade prior to the accounts' closure. The bank maintains that the account closures were not a political statement but were driven by internal anti-money laundering experts' findings regarding account activity.