Capital One responds to Trump's "debanking" accusations: account closures followed months of compliance review
Odaily News: Capital One stated in its latest court filing that the closure of Trump-related accounts in 2021 was based on anti-money laundering (AML) reviews and banking regulatory requirements, rather than political reasons, and requested the court to dismiss the lawsuit filed by Trump's side.
The lawsuit was filed by Trump's financial holding company shortly after he took office for the second time. Trump's side alleged that Capital One illegally closed his accounts for political reasons following the Capitol riot, characterizing the move as "debanking."
Trump's legal team stated that Capital One and other major banks debanked Trump, his family, and his businesses "for obvious political reasons," and said they would continue to pursue the litigation. Capital One responded that the account closure decision was made after months of analysis and reviewed by the bank's anti-money laundering team in accordance with internal policies and regulatory guidelines.
Capital One disclosed that it never publicly announced the account termination decision or the internal review process, and gave Trump-related businesses several months to find new banking services. Trump previously held more than 300 accounts at the bank, covering multiple Trump-branded businesses including golf courses and wineries. Trump had maintained a banking relationship with Capital One for over a decade. The account closures were not a political statement, but rather because certain account activities triggered anti-money laundering risk reviews. The case will ultimately depend on whether the court accepts Capital One's explanation of compliance review and risk management.
Trump has also previously sued JPMorgan Chase, accusing the bank of ceasing to provide banking services for political reasons after he left office. Both banks have denied cutting ties with Trump, his family, and related businesses due to political factors. (Fortune)
