What does laundering mean?
Laundering has two widely understood meanings. In its original and literal sense, it means washing clothes or other fabrics, usually as part of a commercial service; the term may also imply cleaning, pressing, and returning items in a ready-to-wear condition. In its modern financial sense, laundering means concealing the source of illegally obtained money through transfers, purchases, or transactions that give it an apparently legitimate explanation. This second sense is strongly negative and is closely associated with organized crime, fraud, corruption, and anti-money-laundering regulations. The word derives from the vocabulary of washing and laundry, but its extension into finance shows how ordinary commercial processes can acquire specialized meanings. Laundering is therefore useful in discussions of both everyday services and serious legal and financial misconduct.
The process of washing clothes or other fabrics, especially in a commercial setting.
"The business offers laundering, dry cleaning, and ironing."
Often used in British, European, and Commonwealth contexts for professional washing services.
The concealment or disguising of the origins of illegally obtained money so that it appears legitimate.
"The report alleged widespread money laundering through overseas companies."
Usually occurs in the established phrase money laundering or as an attributive modifier in anti-money-laundering contexts.
Plural forms are uncommon; the word is normally used as a mass noun. The plural is possible when referring to separate acts or instances of laundering.
"The investigators documented multiple launderings of criminal proceeds."
From the same root as laundry, laundering has grown from washing clothes to describing one of the world's most serious financial crimes: hiding the source of illegal money.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does laundering come from?
The word comes from the verb launder, meaning to wash clothes, which itself developed from an earlier term connected with washing in water. Laundry, laundress, and laundromat belong to the same lexical family. The financial sense of laundering emerged in the 20th century as a term for disguising the origins of illegally obtained money; the metaphor compares the process to making dirty money appear clean and legitimate.
Related word forms
How laundering is actually used
In its financial sense, money laundering is usually associated with criminal activity and is a formal term used in law, journalism, and public policy. The textile sense is common in service industries and household contexts, where laundering often means professional washing and pressing rather than washing done at home.
Easily confused with laundering
A launder is a person or place where washing is done, while laundering is the act or process of washing.
Laundry refers to clothes or other items to be washed, or to the business of washing clothes, while laundering names the process itself.