American financial institution shuts down 300 accounts tied to Trump following examination for suspicious transactions

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Capital One has disclosed that it closed more than 300 bank accounts linked to the Trump Organisation in 2021, saying the decision followed an anti-money laundering review and was not politically motivated, CNN alongside other multiple media reported on Monday.

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PUNCH Online reports that Capital One is one of the largest banks in the United States

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The disclosure was made in a court filing submitted on Friday in the United States District Court for the Southern District of Florida as the bank seeks to dismiss a lawsuit filed by the Trump Organisation.

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President Donald Trump has maintained that his businesses were “debanked” for political reasons.

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The Trump Organisation sued Capital One last year, alleging it suffered “considerable financial harm” after the accounts were closed.

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In its latest filing, Capital One said the closures were “for anti-money laundering reasons” and followed “months of analysis” conducted by a team “with decades of law enforcement experience.”

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The bank denied the Trump Organisation’s allegations of political discrimination, arguing that the lawsuit was based on vague and unsupported claims.

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Responding to the filing, a spokesperson for the Trump Organisation told CNN that “Capital One’s after-the-fact attempt to justify its debanking of Trump related accounts is completely baseless.”

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The spokesperson also repeated the company’s allegation that the bank “manufactured” a justification for closing the accounts after the January 6, 2021, attack on the US Capitol, describing it as “plainly a politically motivated decision.”

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The White House did not immediately respond to CNN’s request for comment.

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According to the court filing, Capital One identified “transaction patterns” that prompted the review that ultimately led to the account closures.

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However, the bank did not provide details of the review or accuse the Trump Organization of any specific wrongdoing.

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The lender said customers were given several months to arrange alternative banking services before the accounts were closed.

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The case is one of several legal actions filed by Trump or his allies since his return to the White House.

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In January, Trump sued JPMorgan Chase and its Chief Executive Officer, Jamie Dimon, over similar allegations of “debanking,” claims that have also been denied by the bank and its CEO.

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Debanking refers to a bank’s decision to reject or terminate a customer’s banking relationship. Financial institutions may take such action for a range of reasons, including compliance with laws and regulations designed to protect the financial system.

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In recent years, however, the term has also been used by conservative groups and cryptocurrency firms that claim they have been denied banking services because of their political or ideological views.

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Trump signed an executive order a year ago aimed at penalising banks that restrict services to customers based on their political or religious beliefs.

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Banks are required by law to comply with anti-money laundering regulations and routinely monitor transactions for potential signs of fraud or financial crime.

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According to banking experts cited by CNN, such reviews are common, although decisions to close customer accounts are made cautiously.

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