Money Laundering was made Illegal in the year 1986.
In the year 1986 and act called the Money Laundering Control Act was passed and signed in which made and makes money laundering illegal.
The money laundering act consists of two sections which are 18 U.S.C. § 1956 and 18 U.S.C. § 1957 and it's for the first time in the United States criminalized money laundering.
If you're caught and convicted of money laundering you face up to 15 to 20 years in prison depending on the state and how much money was laundered.