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Looking to ‘Save Banks’ in Continuing Credit Crisis, Regulators Shift Resources from AML

By Brian Monroe

Federal banking regulators are shifting their examination priorities from anti-money laundering and other compliance programs to focus on monitoring financial institutions' loan portfolios, liquidity and loss allocations, say former examiners. Once pressed by Congress to mold banks into the first line of defense against terrorists and money launderers, examiners "can't possibly gear up quickly enough" to simultaneously conduct in-depth anti-money laundering (AML) reviews and ensure the "safety and soundness" of financial institutions facing a subprime mortgage meltdown, said a former examiner. Regulators, including the U.S. Treasury's Office of the Comptroller of the Currency (OCC), Federal Reserve Board and Federal Deposit...

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