Capital One says anti-money laundering review led to closure of Trump Organization accounts

SAN FRANCISCO, CALIFORNIA: President Donald Trump's family business is facing renewed scrutiny after Capital One publicly disclosed for the first time that its decision to close more than 300 Trump Organization bank accounts followed a review by the bank's anti-money laundering (AML) team.

The disclosure came in a court filing on Friday, July 31, as Capital One sought dismissal of a lawsuit accusing it of politically motivated "debanking." The filing marks the first time a financial institution has formally linked anti-money laundering concerns to its decision to end its banking relationship with the Trump Organization, although Capital One emphasized that it has never accused the company of money laundering. 

Capital One says AML review, not politics, drove account closures

In its filing, Capital One argued that the Trump Organization's own allegations and court documents demonstrate that the accounts were closed following "months of analysis and a careful review" conducted by its anti-money laundering specialists in accordance with internal policies and federal regulatory guidance.

The bank stated that the Trump Organization's claims of political discrimination were "misguided" and "based on cherry-picked quotations unsupported by the full context" of documents before the court. It added that "the transaction patterns identified by Capital One are among the types of activity flagged by federal banking guidance."

Capital One notified the Trump Organization in March 2021 that it would close more than 300 affiliated accounts. In March 2025, the Trump Organization and Eric Trump sued the bank in federal court in Florida, alleging the closures stemmed from the bank's "woke" political views and its desire to align with the political climate following the January 6, 2021, attack on the US Capitol.

A federal judge in Miami has twice dismissed earlier versions of the complaint while allowing the plaintiffs to amend their claims. Capital One argues the latest complaint continues to suffer from the same legal deficiencies.

Filing comes amid broader debate over alleged 'debanking'

The court filing arrives as the Trump administration has increased pressure on major financial institutions over allegations that banks have denied services based on customers' political or religious views.

Trump has repeatedly criticized what conservatives describe as politically motivated "debanking," and in August 2025 signed an executive order prohibiting discriminatory banking practices.

Earlier this year, Trump also sued JPMorgan Chase on similar grounds. During his first term, he unsuccessfully sought to block Capital One and Deutsche Bank from providing his financial records to Congress during investigations led by Democratic lawmakers.

While Capital One stressed that it has never alleged the Trump Organization engaged in illegal money laundering, it maintained that the decision to terminate the accounts was based on anti-money laundering compliance reviews rather than political considerations.