Capital One disclosed in a July 31 court filing that it closed hundreds of bank accounts associated with President Donald Trump and his businesses in 2021 due to anti-money laundering (AML) concerns. The financial institution stated the closures followed months of analysis and a careful review by its AML team, conducted in accordance with bank policies and regulatory guidance.

The bank's disclosure came as part of a motion to dismiss a lawsuit filed by Trump and his family, who allege that the account closures were politically motivated and unlawful. Capital One emphasized that it did not accuse the Trump Organization of money laundering but maintained that the decision was based on compliance reasons rather than political factors.

"Capital One never publicized the termination decision nor its confidential internal process giving rise to the closure, and it permitted Plaintiffs several months (and granted several extensions) to find new banking services, which they did," the bank's lawyers wrote.

In response, a spokesperson for the Trump Organization told ABC News that Capital One was attempting to manufacture a justification to conceal what they described as a politically motivated decision to debank Trump-related accounts. The spokesperson also claimed that after the January 6, 2021, attack on the U.S. Capitol, Capital One selectively resurrected isolated transactions from years earlier that had never previously raised concerns.

Months prior to closing the accounts, Capital One agreed to pay a $390 million penalty to the Financial Crimes Enforcement Network for failing to maintain an effective anti-money laundering program.

President Donald Trump was pictured addressing reporters during a Cabinet meeting at Camp David, Maryland, on July 31, 2026.

This ongoing legal dispute highlights tensions between financial institutions' regulatory compliance efforts and allegations of political bias in banking decisions.

Sources