NewzBank accounts held by President Trump were closed by Capital One in 2021 after it flagged financial activity that had characteristics of money laundering, the bank said The court filing is tied to a lawsuit filed against Capital One by one of Trump's financial holding companies shortly after he was sworn into office a second time. Capital One says it closed hundreds of accounts associated with President Trump and his businesses in 2021 "for anti-money laundering reasons," according to a filing.
NEW YORK (AP) — Bank accounts held by President Donald Trump were closed by Capital One in 2021 after it flagged financial activity that had characteristics of money laundering, the bank disclosed in a court filing over the weekend. Trump alleges that Capital One illegally closed his accounts for political reasons, following the Jan. Capital One wants the lawsuit dismissed.
“The closures were the result of months of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance,” the bank said in the court filing. The term “AML” is an abbreviation for anti-money laundering. Trump has sued Capital One, as well as JPMorgan Chase, for allegedly debanking him after he left office in 2021.
Debanking occurs when banks shut down customer accounts because they believe they pose financial, legal or reputational risks to the banks. Both banks have denied they severed their relationships with the president, his sons, and other related businesses for political reasons. The lawsuit against JPMorgan Chase is seeking damages of $5 billion.
JPMorgan has said it does not close accounts for political reasons, but closes accounts “with or without cause” and also accounts that create “legal or regulatory risk.” In July, after the original lawsuit had laid dormant for months, lawyers for the president filed an amended lawsuit that alleged the bank debanked him for political reasons. The bank says the new allegations are without merit, saying the complaint rests on “new theories are based on cherry-picked quotations.” President Trump’s legal team dismissed that claim Monday, but did not address the internal findings by the bank. “Capital One, along with other major banks, de-banked President Trump, his family, and his businesses for blatantly political reasons,” a spokesperson for Trump’s legal team said.
“President Trump’s powerful lawsuit holds Capital One accountable for its disgraceful conduct, and we look forward to seeing this matter through to a just and proper conclusion.” Conservatives have long alleged that banks debank them and their political allies. The allegations became louder after Operation Choke Point, an initiative duri… Capitol.Capital One wants the lawsuit dismissed.“The closures were the result of months of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance,” the bank said in the court filing.
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