John McCarthy
By: Virgin Islands Free Press News Desk
WASHINGTON — A federal lawsuit filed by the Trump Organization alleging political bias by banking institutions has backfired, forcing Capital One to disclose in court filings that it terminated hundreds of business accounts due to internal anti-money laundering (AML) flags.
The disclosures came in response to litigation brought by the former president’s business empire, which accused Capital One of improperly severing commercial banking relationships following the events of January 6, 2021.
Internal Compliance Flags
In formal court responses, Capital One clarified that the decision to shutter the accounts was driven strictly by risk management protocols and federal regulatory compliance, rather than political considerations.
According to the bank’s filings, account activities were subjected to a multi-month review by its dedicated financial crimes compliance team—a unit composed of seasoned financial investigators and former law enforcement personnel. The review identified transactional patterns that required action under Bank Secrecy Act and federal anti-money laundering mandates.
Federal regulations strictly prohibit financial institutions from publicly disclosing anti-money laundering investigations or Suspicious Activity Reports (SARs) outside of court proceedings. Capital One’s rationale remained confidential until the Trump Organization’s own lawsuit forced the records into the public docket.
Broader Banking Scrutiny
Capital One is not the sole major institution facing legal action over post-2021 account closures. A parallel lawsuit remains pending against JPMorgan Chase, which similarly terminated personal and business accounts associated with Trump in 2021.
While JPMorgan Chase has not yet detailed its formal defense on the court record, legal analysts note that commercial banks operate under strict federal oversight requiring them to offboard clients when transactional risks exceed internal compliance thresholds.
