Separate bills unveiled Wednesday by the White House and a senior Senate Democrat would give U.S. prosecutors better tools to fight foreign money laundering, but could pose compliance nightmares for banks, while requiring little new from nonbanks.

The Clinton administration's 40-page bill would correct a number of loopholes and flaws that have bedeviled federal prosecutors in court since 1986, when lawmakers and President Ronald Reagan made money laundering a crime. The legislation was handed out just hours before the Senate wrapped up a two-day hearing on alleged money laundering lapses by private bankers at Citigroup Inc. and other institutions.

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