Kenrick Cai at Reuters, back on August 1:
Capital One Financial hit back on Friday against a lawsuit over its decision to close the Trump Organization’s bank accounts years ago, stating that it did so after a review by anti-money laundering experts.
The disclosure marks the first time a bank has formally tied money laundering concerns to U.S. President Donald Trump’s family business. Capital One is seeking to dismiss the case by casting doubt on claims of illegally debanking — or denying services on religious or political grounds — the Trump Organization. […]
Capital One has never accused the Trump Organization of illegal money laundering. But Friday’s filing argues that “documents and Plaintiffs’ own allegations make clear that Capital One closed Plaintiffs’ accounts for anti-money laundering (“AML”) reasons. The closures were the result of months of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance.”
It tickles me that the reason we now know why Capital One closed more than 300 Trump-affiliated bank accounts is because the Trump Organization sued them over it. Capital One was more than happy to stay mum, but the Trump family operates with a revenge mindset and is seemingly incapable of evaluating the consequences of their actions.
I’m no banking expert, but I’m confident that investigations into possible money laundering activity by any business—but especially a well-known business, and in particular one run by the (then-former) president of the United States—are not taken lightly by banks. I get the sense it’s the type of investigation that requires more than a vague suspicion and is backed by reams of documentation—documentation the Trump Organization would have access to. What did the president and his family expect would happen?
Capital One hasn’t (yet?) accused the family businesses of a sitting president of actually engaging in money laundering, but a reasonable person might conclude that a months-long investigation into money laundering concerns that resulted in the closures of hundreds of accounts might imply the possibility that the organization was engaging—at the very least—in money-laundering-adjacent activity. That reasonable person might further conclude that Capital One is merely being circumspect in its unwillingness to directly claim money laundering, for political or other reasons. Regardless, we now have a sitting president whose family businesses have been credibly connected to behavior that could be construed as money laundering. “Unprecedented” seems too inadequate a term.

