So who is the criminal in this scenario?

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The one who snuck across the border and the one hiring the person who they know is illegal.

So the right to work is contingent on government permission? Legally yes this is the case, but is that morally correct?

Defnitly not. Human rights above all. No conditions.

No, I was talking about the crime of money laundering (I mean, it’s a law after all) you decided isn’t one.

Dude, hiding the money you stole isn't an extra crime. The stealing is the crime.

I mean, I don’t disagree with that, but the legal system sees it differently.