Capital One has revealed that it closed more than 300 bank accounts connected to the Trump Organisation in 2021 following an anti-money laundering review, insisting that the decision was not politically motivated.
The disclosure was made in a court filing submitted on Friday to the United States District Court for the Southern District of Florida, where Capital One is seeking the dismissal of a lawsuit brought by the Trump Organisation.
President Donald Trump has previously claimed that his businesses were “debanked” because of political reasons. The Trump Organisation sued Capital One last year, alleging that the closures caused “considerable financial harm.”
In its filing, Capital One said the account closures were the result of “anti-money laundering reasons” and followed months of investigation by a review team with “decades of law enforcement experience.” The bank rejected accusations of political discrimination, arguing that the lawsuit relied on vague and unsupported allegations.
A spokesperson for the Trump Organisation, however, dismissed the bank’s explanation, telling CNN that Capital One’s attempt to justify the closures was “completely baseless.” The spokesperson repeated the company’s claim that the bank created a justification after the January 6, 2021, attack on the US Capitol and described the decision as politically motivated.
The White House did not immediately respond to requests for comment.
According to court documents, Capital One identified certain “transaction patterns” that triggered the review leading to the account closures. The bank did not disclose specific details of the review or accuse the Trump Organisation of any wrongdoing.
Capital One said customers were given several months to secure alternative banking arrangements before the accounts were closed.
The dispute is among several legal battles involving Trump and his allies over allegations of financial institutions cutting off business relationships. In January, Trump also sued JPMorgan Chase and its Chief Executive Officer Jamie Dimon over similar claims of “debanking,” allegations that both the bank and Dimon have denied.
Debanking refers to a financial institution ending or refusing a banking relationship with a customer. Banks may take such action for various reasons, including compliance with anti-money laundering laws and regulations intended to prevent fraud and financial crime.
In recent years, the term has also been used by some conservative groups and cryptocurrency companies who argue that they have been denied financial services because of their political or ideological positions.
Trump previously signed an executive order aimed at discouraging banks from restricting services based on customers’ political or religious beliefs.
Financial institutions are legally required to monitor transactions for possible signs of money laundering, fraud, and other financial crimes. Banking experts note that such reviews are routine, though decisions to close accounts are generally made carefully.
