The focus of money laundering investigations is shifting from private banking operations to correspondent banking relationships.

On the heels of congressional hearings into the anti-money-laundering safeguards in Citigroup's private banking unit, new reports surfaced Friday that in 1997 a New York branch of Citibank was used in channeling $10.8 million of tainted money to the late drug lord Amado Carrillo Fuentes, who was trying to set up operations in Argentina at the time.

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