Capital One Closes Over 300 Trump-Linked Accounts Amid Anti-Money Laundering Review

In a recent court filing, Capital One has revealed that it closed more than 300 bank accounts linked to the Trump Organisation in 2021. The decision, according to the bank, was made following an extensive anti-money laundering review and not due to any political motivations. This disclosure was made as the bank seeks to dismiss a lawsuit filed by the Trump Organisation, which alleged that the account closures were politically motivated and resulted in significant financial harm. The Trump Organisation has maintained that the closures were an act of debanking for political reasons. However, Capital One has denied these allegations, stating that the closures were based on transaction patterns that prompted a thorough review. The bank's team, which includes individuals with decades of law enforcement experience, conducted the review over several months before making the decision to close the accounts. In response to the filing, a spokesperson for the Trump Organisation has described Capital One's justification for the account closures as 'completely baseless' and an 'after-the-fact attempt' to justify a decision that was 'plainly politically motivated.' The case is one of several legal actions filed by Trump or his allies, including a lawsuit against JPMorgan Chase and its CEO, Jamie Dimon, over similar allegations of debanking. The term debanking refers to a bank's decision to reject or terminate a customer's banking relationship, often due to compliance with laws and regulations designed to protect the financial system. In recent years, the term has also been used by conservative groups and cryptocurrency firms to claim they have been denied banking services due to their political or ideological views. Trump has signed an executive order aimed at penalising banks that restrict services to customers based on their political or religious beliefs. Banks are required by law to comply with anti-money laundering regulations and regularly monitor transactions for potential signs of fraud or financial crime. According to banking experts, such reviews are common, although decisions to close customer accounts are made cautiously.