Definition - What does Money Laundering mean?
Money laundering is the process of hiding money acquired through criminal activities.
Criminal enterprises often deal in cash, but trying to bring large amounts of suspicious cash into a bank can be very noticeable to law enforcement. So, many criminal enterprises attempt to "launder" or "clean" the money through a variety of ways.
Justipedia explains Money Laundering
One way that money is often laundered is through a business front. In the business front, a criminal may use cash from the illegal activity to help run the business. For example, a drug dealer may set up a check cashing business and cash the checks with illegally obtained cash. This would be an example of money laundering. Money laundering is often used in large-scale organized crime. It is illegal and those convicted of it can face jail time or other consequences.