Minutes after bank regulators withdrew the controversial know-your-customer proposal Tuesday, Clinton administration officials rushed to defend the broader set of rules used to combat money laundering.

The decision by bank and thrift agencies to dump the customer- identification plan was expected. The Federal Deposit Insurance Corp. alone received over 250,000 comments, most from individuals and all but 105 negative.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.