Chairman and chief executive officer Thomas A. Renyi on Wednesday acknowledged that Bank of New York ignored the suspicious transactions that are now the focus of an international money-laundering probe.

Testifying before the House Banking Committee, Mr. Renyi said bank officials detected unusually large amounts of money moving through accounts opened by Peter Berlin, a Russian immigrant who became a U.S. citizen in 1996 and is under investigation by law enforcement authorities. Over more than three years, Mr. Renyi said, $7.5 billion -- an average of $6 million a day -- moved through eight accounts associated with Mr. Berlin. But no one took any action because Mr. Berlin's wife, bank officer Lucy Edwards, had vouched for the accounts.

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