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Financial institutions are struggling to understand and meet federal expectations linked to anti-money laundering risk modeling five years after regulators published recommendations on the topic, say sources. In April 2011, the U.S. Office of the Comptroller of the Currency and Federal Reserve published guidance outlining issues banks should consider when quantifying their exposure to market and compliance risks, including enterprise-wide evaluations and appraisals of specific safety-and-soundness topics. Although the guidance doesn't reference anti-money laundering specifically, it officially expanded the regulatory definition of "risk model" to include any quantitative method or statistical process consisting of an input component, a processing component...