Capital One Says Trump Accounts Closed Over Money Laundering Red Flags, Not Politics

Capital One revealed in a weekend court filing that it terminated accounts belonging to President Donald Trump in 2021 because the bank’s anti-money laundering team identified financial activity with characteristics suggestive of money laundering. The disclosure came as part of Capital One’s defense against a lawsuit filed by one of Trump’s financial entities shortly after his second presidential inauguration, in which Trump contends the bank illegally closed his accounts due to political animus following the January 6 Capitol attack.

The bank maintained that its account closures resulted from extensive analysis and review conducted by its anti-money laundering compliance team in accordance with established bank policies and regulatory requirements. Capital One stated it did not publicize the termination decision or its internal process, and provided Trump’s accounts several months to transition to another financial institution, even granting extensions during the process.

Trump has initiated similar litigation against JPMorgan Chase, seeking $5 billion in damages and alleging both institutions engaged in debanking—the practice of closing accounts deemed to pose financial, legal, or reputational risks. Both financial institutions have denied that political considerations influenced their decisions to terminate relationships with Trump, his family members, or affiliated businesses.

Trump’s legal team dismissed Capital One’s internal findings on Monday, arguing instead that the closures were motivated by politics. A spokesperson stated that “Capital One, along with other major banks, de-banked President Trump, his family, and his businesses for blatantly political reasons” and pledged to pursue the matter vigorously.

The dispute reflects broader conservative grievances about financial debanking practices, grievances that intensified following Operation Choke Point, an Obama-era regulatory initiative that pressured banks to cut services to the firearms industry, tobacco companies, and payday lenders. Trump had maintained more than 300 accounts with Capital One representing various Trump-branded enterprises before the closures, having banked with the institution for over a decade.

In August 2025, Trump signed an executive order titled “Guaranteeing Fair Banking for All Americans” directing federal banking regulators to halt examinations of banks based on their customer selection. The Trump administration has also subpoenaed records from major financial institutions as part of an investigation into alleged debanking practices.