Capital One (COF) paid $390M for failing to flag money laundering, then faced suit for closing Trump-linked accounts; JPMorgan (JPM) faces a similar lawsuit.
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American banks are caught between two kinds of punishment. If they miss dirty money, regulators fine them. If they flag it and close the account, they get sued for debanking. Capital One (NYSE:COF) has paid on both sides, and its record shows which way the pressure is moving.

#capital #debanking

By Kenrick Cai
SAN FRANCISCO, Aug 1 (Reuters) - 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.
The Trump Organization and Capital One did not immediately respond to requests for comment.
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."

#accounts

By Kenrick Cai
SAN FRANCISCO, Aug 1 (Reuters) - 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.
The Trump Organization and Capital One did not immediately respond to requests for comment.
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."

#Trump #review

Executives behind Reagan, the biopic that cast Dennis Quaid as the ****** ular American icon, have just divulged that their firm was suddenly dropped by its financial institution in the midst of the feature film's production — and, years later, they still have no clue as to why.
It was the end of 2020, when the topic of "debanking" had not yet made headlines as it would in the weeks following the 2021 Capital Riots.
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By Saeed Azhar, Nupur Anand and Chris Prentice
NEW YORK, June 15 (Reuters) - Big U.S. lenders are bracing for further public scrutiny over whether they improperly closed customer accounts as a top watchdog wraps up a review that is expected to name and shame banks and result in disciplinary action, said several people with knowledge of the matter.
The Office of the Comptroller of the Currency is poised ‌to publish in coming weeks the findings of a supervisory review of whether lenders including JPMorgan and Bank of America cut off or denied services on religious or political grounds, often dubbed debanking. It has ‌also examined whether lenders denied services to legitimate, conservative-aligned sectors such as fossil-fuel companies, gun makers and crypto, the people said.
Debanking generally refers to the process whereby a financial institution suddenly cuts off or restricts services to individuals or businesses. Following Republican President Donald Trump's order last year, authorities have been cracking down on what Trump has characterized as politically motivated debanking pushed by Democrats, creating headaches for lenders, who deny the claims and say they have merely been following risk management rules.
Republicans have for years been ramping up pressure on Wall Street banks to drop what they describe as left-leaning "woke" policies that they say are discriminatory, and Trump says he has personally had accounts closed for such political reasons.

Investment products tied to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) registered an outflow of $952 million last week.
CoinShares said the outflow after three consecutive weeks of inflows is indicative of the regulatory uncertainty due to the delay of the Clarity Act, the digital ******* et investment company said on Dec. 22.
Related: JPMorgan Chase reportedly eyes crypto trading amid debanking claims
The fear of whale selling during the market slide also led to the outflow, it added.
The U.S. led with an outflow of $990 million, though the inflows in Canada and Germany helped