Capital One Closed Over 300 Trump Accounts for AML Concerns

Capital One disclosed in a recent court filing that it closed over 300 bank accounts belonging to the Trump Organization and Eric Trump in March 2021, citing anti-money laundering (AML) concerns. This revelation emerged as part of the bank's defense against a lawsuit filed by the Trump Organization and Eric Trump last year in federal court. The plaintiffs alleged that Capital One terminated their business relationships due to political discrimination and "woke" beliefs, seeking to distance itself from former President Trump and his conservative views. Capital One's legal team is actively seeking dismissal of the lawsuit, arguing that the Trump group's claims are based on "vague allegations of political discrimination" and overlook the substantive reasons for the account closures.

The bank's filing emphasizes that the decision to close the accounts was the outcome of extensive analysis and a thorough review conducted by Capital One's dedicated AML team. This process adhered strictly to the bank's internal policies and relevant regulatory guidance. The "anti-money laundering reasons" cited by Capital One indicate that the accounts were flagged for suspicious financial activities, suggesting potential violations of regulations designed to prevent illicit financial flows. The bank's position is that these financial compliance issues, rather than political motivations, were the sole drivers behind the account terminations.

The timing of the account closures in March 2021 is noteworthy, occurring a few months after the January 6th Capitol riot. This period saw several social media platforms and other businesses sever ties with the then-former president, citing his alleged role in inciting the day's violence. The Trump Organization, in its lawsuit filed in March of the previous year, highlighted this prevailing political atmosphere. The lawsuit claimed that Capital One's decision was influenced by political and social factors, leading to financial harm for the organization and characterizing the event as an instance of "systemic" and "subversive" action against them. The Trump Organization's legal action, filed four years after the account closures, seeks to hold Capital One accountable for alleged damages stemming from what they perceive as politically motivated debanking.