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House Passes Bank Bill On Money Laundering


The House voted today to set up a process that would allow the Government to close banks and savings and loans convicted of laundering drug money.

The House voted today to set up a process that would allow the Government to close banks and savings and loans convicted of laundering drug money.

But it bowed to intense opposition from the Bush Administration, the Federal Reserve Board and the banking industry in refusing to make banks and savings institutions keep records on the most widely used method of laundering money.

Closing Not Automatic

Under the bill, regulators would be authorized to revoke a bank or savings institution’s charter and lift its Federal deposit insurance if the institution or its officials were convicted of money laundering. But the closing would not be automatic.

More : query.nytimes.com



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