Bank accounts held by President Donald Trump were closed by Capital One in 2021 after the bank flagged financial activity that had characteristics of money laundering, according to a court filing.

Background

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. Trump alleges that Capital One illegally closed his accounts for political reasons, following the January 6 protests at the U.S. Capitol.

Capital One wants the lawsuit dismissed, stating that the closures were the result of months of analysis and a careful review by the bank’s anti-money laundering team in accordance with bank policies and regulatory guidance.

Trump’s Lawsuit

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.

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 based on cherry-picked quotations.”

Response from Trump’s Team

President Trump’s legal team dismissed the claim, stating that Capital One, along with other major banks, debanked President Trump, his family, and his businesses for blatantly political reasons.

Original reporting: KOAT Albuquerque — read the source article.