A major US bank says it shut down about 300 accounts linked to President Donald Trump and his associates as part of an anti-money laundering review, describing the move as a compliance measure rather than a political decision.
File: US President Donald Trump
Capital One has disclosed that it closed more than 300 bank accounts linked to the Trump Organisation in 2021, saying the decision followed an anti-money laundering review and was not politically motivated, CNN alongside other multiple media reported on Monday.
Capital One
PUNCH Online reports that Capital One is one of the largest banks in the United States
The disclosure was made in a court filing submitted on Friday in the United States District Court for the Southern District of Florida as the bank seeks to dismiss a lawsuit filed by the Trump Organisation.
President Donald Trump has maintained that his businesses were “debanked” for political reasons.
The Trump Organisation sued Capital One last year, alleging it suffered “considerable financial harm” after the accounts were closed.
In its latest filing, Capital One said the closures were “for anti-money laundering reasons” and followed “months of analysis” conducted by a team “with decades of law enforcement experience.”
The bank denied the Trump Organisation’s allegations of political discrimination, arguing that the lawsuit was based on vague and unsupported claims.
Responding to the filing, a spokesperson for the Trump Organisation told CNN that “Capital One’s after-the-fact attempt to justify its debanking of Trump related accounts is completely baseless.”
The spokesperson also repeated the company’s allegation that the bank “manufactured” a justification for closing the accounts after the January 6, 2021, attack on the US Capitol, describing it as “plainly a politically motivated decision.”
The White House did not immediately respond to CNN’s request for comment.
According to the court filing, Capital One identified “transaction patterns” that prompted the review that ultimately led to the account closures.
However, the bank did not provide details of the review or accuse the Trump Organization of any specific wrongdoing.
The lender said customers were given several months to arrange alternative banking services before the accounts were closed.
The case is one of several legal actions filed by Trump or his allies since his return to the White House.
In January, Trump sued JPMorgan Chase and its Chief Executive Officer, Jamie Dimon, over similar allegations of “debanking,” claims that have also been denied by the bank and its CEO.
Debanking refers to a bank’s decision to reject or terminate a customer’s banking relationship. Financial institutions may take such action for a range of reasons, including compliance with laws and regulations designed to protect the financial system.
In recent years, however, the term has also been used by conservative groups and cryptocurrency firms that claim they have been denied banking services because of their political or ideological views.
Trump signed an executive order a year ago 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 routinely monitor transactions for potential signs of fraud or financial crime.
According to banking experts cited by CNN, such reviews are common, although decisions to close customer accounts are made cautiously.
