WASHINGTON — At first blush, a government agency revoking its finding that a bank posed a material money-laundering risk might seem like encouraging news of regulatory easing.

But observers have reacted differently to the Financial Crimes Enforcement Network's recent removal of "primary money laundering concern" labels for three foreign banks. Many say the withdrawals reinforce concern that Fincen is citing certain overseas banks just to push them out of business, while backers of one of the banks, Banca Privada d'Andorra, say Fincen is trying to escape legal scrutiny of its action through the withdrawals.

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