Odaily Planet Daily reports that in a recent court filing, Capital One stated that the closure of Trump-related accounts in 2021 was based on anti-money laundering (AML) reviews and banking regulatory requirements, not 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 his second inauguration. Trump’s team alleges that Capital One illegally closed its accounts for political reasons following the Capitol riot, constituting a “debanking” action.
Trump’s legal team stated that Capital One and other major banks “de-banked” Trump, his family, and his businesses for obvious political reasons, and said they will continue pursuing the lawsuit. Capital One responded that the decision to close the accounts was made after months of analysis and reviewed by the bank’s anti-money laundering team in accordance with internal policies and regulatory guidance.
Capital One disclosed that it never publicly disclosed its account termination decision or internal review process, and gave Trump's related businesses several months to find new banking services. Trump previously held over 300 accounts at Capital One, covering various Trump-branded businesses such as golf courses and wineries. Trump maintained a banking relationship with Capital One for over a decade. The account closures were not a political statement but rather due to certain account activities triggering anti-money laundering risk reviews. The outcome of this case will depend on whether the court accepts Capital One’s explanation regarding compliance reviews and risk management.
Trump previously sued JPMorgan Chase, alleging that the bank ceased providing banking services after his departure due to political reasons. Both banks deny cutting ties with Trump, his family, or related businesses for political reasons. (Fortune)