Capital One cites anti-money laundering concerns in Trump Organization case

SaveSharefacebookxwhatsapp-strokecopylinkUS President Donald Trump cuts the ribbon next to his son Eric Trump and golf executive Sarah Malone at the ribbon-cutting ceremony for a new 18-hole course at Trump International Golf Links on July 29, 2025 near Aberdeen, Scotland [File: Jeff J Mitchell/Getty Images]By Al Jazeera Staff and ReutersPublished On 2 Aug 20262 Aug 2026Capital One Financial has hit back against a US lawsuit over its decision to close more than 300 of the Trump Organization‘s bank accounts in 2021, stating that it did so after a review by its anti-money-laundering team.The disclosure filed on Friday marks the first time a bank has formally tied money-laundering concerns to United States President Donald Trump‘s family business, according to Reuters. Capital One is seeking to dismiss the case by casting doubt on claims of illegal debanking — or denial of services on religious or political grounds — against the Trump Organization.Recommended Stories list of 3 itemslist 1 of 3Trump takes economic message to Michigan amid dwindling popularitylist 2 of 3Trump denounces Justice Department decision to drop Reflecting Pool chargeslist 3 of 3Trump Organization fined $1.6m for ‘brazen’ tax fraudend of listThe Trump Organization and Capital One did not immediately respond to requests for comment.Capital One has never accused the Trump Organization of illegal money laundering. But Friday’s filing argues that “documents and Plaintiffs’ own allegations make clear that Capital One closed Plaintiffs’ accounts for anti-money laundering (‘AML’) reasons. 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.”Capital One gave notice in March 2021 of its plans to close more than 300 Trump-affiliated bank accounts. The Trump Organization and Eric Trump, the president’s son, filed a lawsuit in March 2025 in a US federal court in Florida, alleging the accounts were closed due to political reasons and Capital One’s desire to benefit from the political mood after the January 6, 2021, riot by Trump supporters at the US Capitol.The court has tossed out two complaints in the Capital One case, but gave the plaintiffs opportunities each time to submit an amended complaint. Capital One said that the latest version, filed in July, “suffers from the same fundamental flaws as their prior two pleadings”.Capital One said in Friday’s filing that the case should be permanently dismissed and that the Trump Organization’s allegations of political pretext were “misguided”. The company went on to claim that the Trump Organization’s assertions of “political discrimination” were “based on cherry-picked quotations unsupported by the full context” of documents submitted to the court.“The transaction patterns identified by Capital One are among the types of activity flagged by federal banking guidance,” the filing said.The company also countered the Trump Organization’s assertions that it should have been allowed to explain any suspicious activity. “If any inquiry about the transactions or explanation of the account termination would reveal information subject to federal confidentiality obligations, federal law prohibits such disclosure,” the filing stated.Since the start of Trump’s second term, his administration has put pressure on some large banks, echoing conservative complaints that the institutions are deliberately targeting the political right.Trump signed an executive order in August 2025 barring discriminatory debanking. And in January, he filed a suit against JPMorgan Chase on the same grounds, underscoring the fraught policy environment that Wall Street is navigating during the president’s second term.In 2019, during his first term, Trump sued Capital One and Deutsche Bank to prevent them from sharing financial records with the US Congress as part of a probe led by Democratic lawmakers. Anti-money-laundering professionals at Deutsche Bank reportedly flagged a set of transactions, but executives ignored them; Deutsche Bank denied the report at the time.