Edinburgh solicitor Leslie Deans was arrested several weeks ago as part of an ongoing fraud inquiry, police said.
The 62-year-old runs a chain of estate agencies in the city and was Hearts chairman in the late 1990s. The case is not linked to the club.
It has surprised the Scottish capital's legal establishment at a time when lawyers' leaders have moved to curb alleged concerns about the activities of some in the profession.
Earlier this year a lawyer was convicted of money laundering after a major overhaul of the laws governing the relationships between lawyers and clients.
Richard Housley, 57, helped people associated with criminal activity hide £1.8 million of so-called dirty money. Housley was also convicted of income tax fraud and a charge under the Proceeds of Crime Act. There is no connection between the two cases.
A Law Society of Scotland spokeswoman said it strives to ensure transparency in all transactions.
A Police Scotland spokesman said: "We can confirm that a 62-year-old man has been arrested and charged with money-laundering offences as part of an ongoing fraud inquiry." A report will be sent to the procurator fiscal.