WASHINGTON - Treasury Secretary Lawrence H. Summers is expected on Thursday to propose anti-money-laundering legislation that would give him more authority to single out parts of the world where U.S. financial institutions may not do business.

The industry would prefer that approach to a proposal by House Banking Committee Chairman Jim Leach, which would bar banks from establishing relationships with financial institutions from countries that lack "comprehensive" and "consolidated" supervision. The reason, said American Bankers Association senior counsel John J. Byrne, is that the Leach bill would put too much responsibility on banks to make that determination instead of the government.

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