Capital One Financial Corp. filed court documents on Friday disclosing that it terminated accounts associated with the Trump Organization in 2021 after a thorough examination led by its anti-money laundering division. The bank denied any political bias, emphasizing that the unusual financial activities detected align with behaviors outlined in federal guidelines as red flags for potential concerns.
The filing is part of Capital One's motion to a federal judge to dismiss the Trump Organization's lawsuit, which claims the bank's actions were driven by political motives following the January 6 Capitol attack. Capital One rejected these accusations, stating there is no credible evidence to substantiate claims of political bias in the account closures.
Legal Response From Trump's Side
According to the filing, the decision to terminate the accounts was made in collaboration with seasoned anti-money laundering experts with backgrounds in law enforcement. Capital One confirmed it did not make the closures public and gave the Trump Organization several months, with added flexibility, to seek other banking services, which the company eventually did.
In response, the legal team representing Trump accused Capital One of making politically driven decisions, asserting the bank unfairly targeted the organization using its political influence. The lawsuit maintains that the anti-money laundering claims served as a justification for ending the company's financial ties.
This is not an isolated case. Trump has also filed legal action against JPMorgan Chase & Co. over the termination of his personal accounts in 2021. Both Capital One and JPMorgan argue that their customer agreements permit them to end accounts for any reason they deem appropriate.
Broader Context of Compliance Lawsuits
Compliance and anti-money laundering laws have become central themes in these disputes. During his presidency, Trump criticized these regulations, claiming they were harmful to businesses and often employed in politically motivated ways.
The original lawsuit filed by the Trump Organization was dismissed earlier this year due to insufficient evidence to demonstrate political bias. Capital One noted that the organization has yet to provide any proof of political discrimination, despite having had access to internal bank records for several months.
The updated lawsuit submitted last month contains a 10-page section titled 'January 6, 2021: The Political Trigger,' but it has been heavily redacted, obscuring its content and leaving the evidence ambiguous. Both parties may soon reach an agreement on what can be revealed, potentially resulting in a more complete complaint. Capital One also requested the continued concealment of the names of employees involved, citing the intense public attention surrounding the case.
Ongoing Legal Proceedings and Claims
Capital One reiterated in its filing that the Trump Organization has not demonstrated how offering more information about the transactions would have altered the bank’s decision. The bank pointed out that the Trump Organization accuses the anti-money laundering claims of being a cover, but has failed to back up this claim with evidence. Capital One affirmed that the closures were part of a prolonged review and adhered to the bank's internal policies and federal directives.
Trump's legal representatives described the closures as unjust and politically driven, expressing confidence in the eventual outcome of the case. The Trump Organization is also seeking further information from Capital One, but so far, no proof has been presented to associate the account closures with political motives.
Eric Trump, the president’s son and a high-ranking executive at the Trump Organization, is one of the plaintiffs in the Capital One lawsuit and has openly criticized the practice of debanking. Trump himself frequently claims that conservative individuals and groups are unfairly excluded from financial services, accusing banks of harboring political bias in their choices.
Capital One continues to seek the dismissal of the case, reiterating that the bank adhered to standard procedures and that the account closures were based on valid concerns about possible money laundering. The bank insists that the Trump Organization has not submitted any credible evidence to back its claims, despite numerous chances to do so.