The focus of non-compliance with anti-money laundering and counter terrorism laws is about to shift beyond the Commonwealth Bank after National Australia Bank revealed in notes to its annual report that it is remediating "identified issues" and "weaknesses" with its AML/CTF program.The problems with NAB's anti-money laundering systems are not yet quantifiable, with the bank deciding to disclose a contingent liability in its 2017 annual report for possible non-compliance with "Know Your Customer" rules and shortcomings in transaction monitoring."The Group is currently investigating and remediating a number of identified issues, including certain weaknesses with the implementation of 'Know Your Customer' requirements and systems and process issues that impacted transaction monitoring and reporting for some specific areas," the bank told shareholders on page 108 of its annual report."It is possible that, as the work progresses, further issues may be identified and additional strengthening may be required. "The outcomes of the investigation and remediation process for specific issues identified to date, and for any issues identified in the future, are uncertain."The use of the term "some specific areas" indicates that compliance problems have been unearthed in at least several parts of the group, but the bank elected not to reveal the operating units that failed to meet reporting and monitoring standards.Given the reputational and potential legal fallout from the collapse of anti-money laundering reporting at CBA, institutional shareholders will be seeking assurances from NAB's management that the bank is not likely to be exposed court action and penalties from Austrac.Directors defined the bank's exposure as "uncertain".CLSA banking analyst Brian Johnson said it would help investors if NAB were able to give more detail about the issues and weaknesses discovered in its compliance processes."Given that the debate around CBA's problems is now centred on whether shareholders were adequately informed when its board first became aware of compliance problems, a little more colour on the magnitude of NAB's exposure would be appropriate," he said.Under Australian accounting standards, listed companies are required to disclose business risk exposures if directors and auditors believe that a contingent event could lead to "possible" or "likely" losses.NAB used the term "possible" to describe the group's exposure to AML/CTF issues and weaknesses.Disclosure of the contingent liability is a tad surprising given that chief executive Andrew Thorburn did not volunteer details of the existence of AML/CTF compliance "issues" or "weaknesses" during his appearance at a hearing of the House of Representatives' economics committee on 20 October.In his opening remarks at the hearing Thorburn said that the bank's directors and executives took anti-money laundering seriously and were committed to improving compliance systems."I want to assure you that NAB takes anti-money laundering obligations extremely seriously," he told the parliamentary hearing."It is a clear focus of our Board, our executive team, and right through the whole bank. "We are continually investing to improve detection through better systems and processes."NAB states in its latest annual report that it began a program in July 2016 to "uplift and strengthen" its anti-money laundering compliance, which involved significant