Capital One has told a U.S. federal court that its decision to close more than 300 bank accounts linked to the Trump Organization in 2021 followed an internal anti-money laundering (AML) review rather than political considerations. The filing was made as the bank seeks dismissal of a lawsuit brought by the Trump Organization and Eric Trump, who allege they were unlawfully “debanked” because of their political affiliations.
The court submission, filed on Friday, marks the first time a financial institution has formally linked concerns arising from anti-money laundering compliance procedures to its decision to end banking services for the Trump family’s business. Capital One, however, did not accuse the Trump Organization of engaging in illegal money laundering.
Capital One Defends Decision in Court
According to the bank’s filing, the account closures followed months of review conducted by Capital One’s anti-money laundering specialists in line with the institution’s internal policies and applicable regulatory guidance.
The bank argued that records submitted to the court, along with the allegations contained in the lawsuit itself, demonstrate that the accounts were closed for AML-related reasons rather than political motives.
Capital One maintained that the review was based on compliance obligations required of financial institutions and was carried out under established banking procedures.
More Than 300 Accounts Were Scheduled for Closure
Capital One notified the Trump Organization in March 2021 that it intended to close more than 300 accounts connected to the business. The notification came just months after the January 6, 2021 attack on the U.S. Capitol, an event that forms part of the political backdrop referenced in the lawsuit.
The Trump Organization and Eric Trump later filed suit in March 2025 in a federal court in Miami, alleging the bank acted because of what they described as Capital One’s “woke” political beliefs and an effort to align itself with the political climate following the Capitol riot.
The plaintiffs contend the bank’s decision amounted to unlawful political discrimination rather than a legitimate compliance action.
Bank Rejects Political Motivation Claims
Capital One strongly disputed those allegations in its latest filing.
The bank described the claims of political pretext as “misguided,” arguing that they relied on selective excerpts from documents without considering their broader context.
“Documents and Plaintiffs’ own allegations make clear that Capital One closed Plaintants’ 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.”
The filing further stated that the transaction patterns identified during the review were among the types of activity highlighted in federal banking guidance for AML monitoring.
Although the bank cited anti-money laundering considerations, it stopped short of alleging that the Trump Organization had committed money laundering or violated any criminal law.
Court Has Already Dismissed Earlier Complaints
The legal dispute has already undergone multiple rounds of judicial scrutiny.
A federal court in Miami previously dismissed two versions of the complaint filed by the Trump Organization and Eric Trump. On each occasion, however, the court allowed the plaintiffs an opportunity to amend and refile their claims.
Capital One argued that the latest amended complaint, submitted in July, continues to suffer from what it called the same “fundamental flaws” identified in the earlier pleadings.
The bank has therefore asked the court to dismiss the revised complaint as well.
Case Unfolds Amid Broader ‘Debanking’ Debate
The lawsuit is unfolding against the backdrop of an increasingly contentious national debate over so-called “debanking,” a term used to describe financial institutions allegedly denying services because of customers’ political or religious beliefs.
Since the beginning of President Donald Trump’s second term, his administration has increased pressure on several major financial institutions while echoing conservative criticism that banks have unfairly targeted right-leaning individuals and organizations.
In August 2025, Trump signed an executive order aimed at prohibiting discriminatory debanking practices.
Earlier this year, Trump also filed a separate lawsuit against JPMorgan Chase raising similar allegations, highlighting the growing legal and political focus on banking practices during his administration.
Previous Banking Disputes
The current dispute is not the first legal confrontation involving Trump’s financial relationships with major banks.
In 2019, during his first presidential term, Trump sued Capital One and Deutsche Bank in an effort to prevent the institutions from providing his financial records to Congress during an investigation led by Democratic lawmakers.
Separate reports at the time indicated that anti-money laundering professionals at Deutsche Bank had flagged certain transactions internally, although executives allegedly did not pursue further action. Deutsche Bank denied those reports.
No Immediate Response From Parties
Reuters reported that neither the Trump Organization nor Capital One immediately responded to requests for comment following Friday’s court filing.
The case remains pending before the federal court in Miami, where the bank is seeking dismissal of the latest amended complaint.
