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Democratic Lawmakers Want AML Provisions in ‘Reputational Risk’ Bill

Senate Democrats want to amend pending legislation to give U.S. AML supervisors new power to require banks to close accounts linked to drug traffickers or terrorists, or otherwise suspected of holding or acting as conduits for illicit funds. Sens. Jack Reed (D-RI) and Elizabeth Warren (D-MA) pitched the two amendments to the Financial Integrity and Regulation Management Act, or FIRM Act, on Thursday, seven months after the bill, which would bar federal regulators from using "reputational risk" as a factor in AML supervision and examinations, passed the Banking Committee along partisan lines. "We've filed the amendments on the Senate floor,"...

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