Bank says account closures followed lengthy financial-crime assessment, rejects allegations of political bias
WASHINGTON: Capital One has asked a US court to dismiss with prejudice a lawsuit filed by companies affiliated with President Donald Trump, arguing that the bank closed nearly 300 accounts in 2021 for anti-money laundering (AML) reasons rather than political considerations.
In a motion filed on Friday, the bank maintained that its decision followed months of analysis by its financial-crimes unit, whose members possess decades of law enforcement experience. Capital One argued that the plaintiffs failed to present a legally viable claim and urged the court to dismiss the case permanently.
According to the filing, the bank informed the account holders in March 2021 that the accounts would be closed by June, providing three months to establish banking relationships elsewhere. Capital One added that it also granted extensions beyond the original deadline when requested.
The lawsuit, filed in March 2025, alleges that the bank shut the accounts to distance itself from Trump following the January 6, 2021, Capitol riot. However, Capital One rejected the allegation, saying the plaintiffs relied on selective quotations that ignored the broader context of the bank’s internal records.
Bank says contracts required no explanation
Capital One also challenged claims that it committed fraud by not disclosing the reasons behind the account closures. The bank argued that its contracts explicitly allowed account termination without providing an explanation.
Furthermore, the bank said the alleged inconvenience and difficulty in obtaining new banking services would have occurred regardless of whether the reasons had been disclosed.
Its lawyers also argued that the Bank Secrecy Act restricted what information the institution could reveal regarding its internal AML procedures and investigations.
Broader legal dispute over alleged ‘debanking’
The Capital One case forms part of a broader series of lawsuits filed by Trump-affiliated entities against major US banks over alleged “debanking” practices. The plaintiffs argue that financial institutions closed accounts based on political bias and reputational concerns.
Separately, Trump filed a $5 billion lawsuit against JPMorgan Chase and its chief executive, Jamie Dimon, in January 2026, alleging similar conduct. JPMorgan has denied wrongdoing, and that case remains pending before the US District Court for the Southern District of Florida.
Capital One maintains that its account closures complied with contractual terms and applicable federal regulations, while the court has already dismissed an earlier version of the lawsuit on similar legal grounds.
