launder

To launder something means to wash and clean it, but not only clothes. It can also mean to make money from doing something that isn't supposed to earn any.

When we talk about washing our clothes or other things like blankets or towels, we're using "launder" in its most common way. But if someone's been accused of something shady and now they're making money from it, they might be said to have laundered the situation. This second meaning usually involves some kind of deceit or hidden activity, so it's a more complicated use of the word than just washing dirty things.