> I get that money laundering is always linked to criminal activity

Its not. Well, by definition it is but it is paradoxical. Money obfuscation is not illegal, but when the source of the money is illicit then money obfuscation is money laundering, but successful money laundering means nobody can ever distinguish between a licit or illicit source, and it is up the accuser to prove the source was illicit, which should be impossible. (Whether there are records or not, there should be no probable cause to receive or act on those records at the standard needed for a criminal investigation)

So, only unsuccessful money laundering is linked to criminal activity, and deterrence relies on stigmatizing all money obfuscation.