The article examines the essence of the concept of money laundering through the implementation of cash transactions, defines the origin of this term and explores the historical aspect, which lays on its basis. The definition of the studied concept, which is closest to our understanding of the term «money laundering», is given taking into consideration its broad meaning and versatility. Various spheres of economic activity in which illegal income is legalized have been studied, including both illegal (drug trafficking, smuggling, bribery, fraud, etc.) and legal (financial, credit, banking, tax sectors of the economy). The existing constant demand for the use of cash is noted, despite the tendency of gradually increasing of the volume of non-cash accounts in the modern world. The reasons for the cash use in the process of legalization of proceeds from crime are identified, and the impact of this activity on the economic development of the state is highlighted. The connection between the amount of cash and the development of the shadow economy in Ukraine, bribery and corruption schemes, tax evasion, terrorist financing and other illegal activities is analyzed. The newly introduced legislation on the payer identification while transferring cash in the amount of more than 5 thousand hryvnias is considered. The basic conditions necessary for cash transfers for individuals and legal entities, as well as individual entrepreneurs are highlighted. The list of documents required for cash payment is given. The reasons for the adoption of this law are identified and the positive results of its implementation are presented. On the basis of the conducted research the directions of struggle against money laundering are proposed. Also, measures to reduce the circulation of cash underlying money laundering are presented, as well as the positive impact of the implementation of these measures on the economy of Ukraine, the effective development of financial literacy of the population, increasing its confidence in the banking system is highlighted, that will reduce the level of the «shadow» economy in Ukraine. Keywords: cash, money laundering, legalization of proceeds of crime, corruption, shadow economy, economic crime.