Capital One said in a recent court filing that its 2021 decision to close accounts tied to Donald Trump was driven by anti-money laundering, or AML, reviews and banking regulatory requirements, not political considerations. The bank asked the court to dismiss the lawsuit brought by Trump’s side.
The lawsuit was filed by a Trump financial holding company shortly after Trump began his second term as president. Trump’s side alleges that Capital One illegally closed the accounts after the Capitol riot for political reasons, describing the action as "debanking."
Capital One said the account closures came after months of analysis. According to the bank, its AML team reviewed the matter under internal policies and regulatory guidance before the decision was made.
The bank also said it never publicly disclosed the account terminations or its internal review procedures. It added that Trump-related businesses were given months to secure new banking services.
Trump previously held more than 300 accounts with Capital One, covering several Trump-branded businesses including golf courses and a winery. The banking relationship between Trump and Capital One had lasted for more than a decade.
Trump’s legal team said Capital One and other large banks had debanked Trump, his family, and his businesses for what it called obvious political reasons, and said it would keep pressing the case.
The report also said Trump had previously sued JPMorgan Chase, accusing the bank of ending banking services after he left office for political reasons. Both Capital One and JPMorgan Chase deny that they cut ties with Trump, his family, or related businesses because of politics.
According to Fortune, the next phase of the case will turn on whether the court accepts Capital One’s explanation of its compliance review and risk management process.