WASHINGTON - Little more than a year after proposed know-your-customer rules died in an avalanche of criticism, the concept is making a comeback with a new name, new packaging, and fewer regulatory teeth.

Federal banking regulators are preparing to recast the anti-money-laundering requirements as "enhanced due diligence," using as a blueprint the settlement agreement reached between the Federal Reserve Board and Bank of New York in February over a money laundering scandal. In a key departure from last year's proposal, however, regulators plan to issue the requirements as guidelines, rather than a binding rule.

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