Background of the Case

Capital One bank is seeking to dismiss a lawsuit from the Trump Organization regarding the closure of hundreds of bank accounts in 2021. The bank attributes the shutdowns to an extensive anti-money-laundering review, contrary to the Trump family businesses’ claim that the closures were retaliatory measures following the January 6 Capitol riot.

Capital One’s Arguments

Capital One has filed a motion to dismiss the case in a Florida federal court. Its lawyers argue that own filings and claims from Trump businesses clearly show the accounts were closed due to anti-money laundering concerns. The decision involved months of review by a team specialized in financial crimes with extensive law enforcement experience. However, the Trump Organization and affiliated entities were reportedly not given a chance to respond to these concerns before the account closures.

It remains uncertain if subsequent banks raised similar money laundering concerns, or how the Trump Organization reacted to Capital One’s allegations. The Trump Organization has not yet commented on the matter.

Lawsuit History and Allegations

The case focuses on approximately 385 accounts linked to the Trump Organization, Eric Trump, and related businesses. These accounts include a winery, bottled-water company, and a golf course developer, all banking with Capital One for over a decade before closure in mid-2021.

The Trump-affiliated companies insist the closures were politically motivated, particularly in response to distancing from Donald Trump post riot. They argue the bank’s anti-money-laundering rationale was a post-hoc justification for a politically driven decision. Capital One rebuts these assertions, highlighting that such claims rely on selective quotations without full context.

Capital One maintains that it kept its reasoning confidential; never publicizing the account termination or its internal processes. Trump companies were given adequate time and extensions to transfer their funds, which was done.

Legal Rights and Contracts

Capital One emphasizes its contractual right to close accounts “at any time, for any or no reason and without notice.” This clause is generally not contestable in court, which was affirmed by Judge Roy Altman when he dismissed an earlier version of the lawsuit in March. Capital One now seeks permanent dismissal without opportunity for the Trump Organization to refile.

The bank further opposes a new fraud claim added by the plaintiffs in July, arguing there was no obligation to disclose reasoning under banking-secrecy law.

Secrecy and Related Conflicts

Another issue is the secrecy law affecting public record access. Capital One has requested the court to keep parts of an exhibit sealed, citing protection under the Bank Secrecy Act, which includes employee names, account numbers, and compensation details. While Trump companies don’t oppose sealing certain passages, they contest several other redactions.

Additionally, a similar lawsuit was filed against JPMorgan Chase in January concerning account closures from the same period.

Political Context

President Trump signed an executive order in August mandating regulators to combat politically motivated ‘debanking.’ Capital One previously had legal confrontations with Trump, notably in 2019 when the president attempted to prevent the bank and Deutsche Bank from releasing his financial records to a congressional investigation led by Democrats.