What type of crime is money laundering categorized as?

Money laundering is categorized as a felony because it involves significant criminal conduct aimed at concealing the origins of illegally obtained money, typically generated from activities such as drug trafficking, fraud, or organized crime. The purpose of money laundering is to make illicit gains appear legitimate, which often involves complex transactions that can damage financial institutions and the economy as a whole.

Due to the serious nature and the potential impact of this crime, it usually carries severe penalties, including substantial fines and lengthy prison sentences. In most jurisdictions, the legal framework treats money laundering more severely than misdemeanors, infractions, or petty offenses, all of which are considered less serious and usually involve lighter penalties. This classification emphasizes the law's recognition of the threat posed by money laundering to the integrity of the financial system and societal order.