Maybe encryption should be illegal if it is used to hide crimes from law enforcement. That doesn't mean it still can't be used. I carry a concealed weapon with a license, that doesn't mean I can just shoot people willy nilly. 
Thank you. So just because money laundering might be used by criminal entities, doesn't mean that money laundering can't be used by "law abiding" citizens...
By definition, that is not money laundering. It's nobody's business where I get my money as long as I declare the amount, pay my taxes, and it is legally made.