Los Angeles, less than clean (7)
'clean' is the definition.
(laundering is a kind of cleaning)
'los angeles less than' is the wordplay.
'los angeles' becomes 'la'.
'less than' becomes 'under' (I've seen this before).
(Other definitions for launder that I've seen before include "Make clean again - clothes or money", "Trough", "Make illegal (money) legitimate", "Make clean, clothing or money", "Wash or cleanse, clothes or money".)