Capital One responds to Trump's "debanking" accusations: account closures followed months of compliance review
Odaily Planet Daily 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 asked 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 a second time. Trump's side alleged that Capital One illegally closed his accounts for political reasons following the Capitol riot, constituting "debanking" behavior.
Trump's legal team stated that Capital One and other major banks carried out debanking against Trump, his family, and his businesses "for obvious political reasons," and said they would continue to pursue the lawsuit. Capital One responded that the account closure decision was made after months of analysis and review 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, involving multiple Trump-branded businesses including golf courses and wineries. Trump maintained a banking relationship with Capital One for more than 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 regarding compliance reviews and risk management.
Trump has also previously sued JPMorgan Chase, alleging that the bank stopped providing 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)
