WASHINGTON - Treasury Secretary Lawrence H. Summers said Thursday that regulators will try again to develop guidelines that would help bankers spot money launderers among their customers.

However, Mr. Summers emphasized that regulators were chastened by the failure of the "know-your-customer" proposal last year and would craft a scaled-back, more flexible version than the plan that incited a public backlash over privacy. Regulators withdrew that plan - which would have required banks to investigate the sources of their customers' money - after consumers sent tens of thousands of comment letters objecting to the proposal as a government intrusion into their confidential financial affairs.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.