On the basis of the original meaning, modern significance and legal definition of money laundering, this paper expounds the connotation and theoretical basis of anti‐money laundering, and analyzes the system and effectiveness of anti‐money laundering from two aspects of international cooperation and domestic implementation. Through literature review, it is considered that the current anti‐money laundering system has evolved into a tool of multi‐purpose governance, and the research results fully reveal the current situation of insufficient effectiveness of the anti‐money laundering system, but there is no clear solution, which should be supplemented and improved.