Stupidity: It was pure stupidity for Riggs to bring Rika back at her residence after escaping the hit on Riggs. The villains know where Riggs' love interest lives and this nor the option to hide somewhere else or safer never occurs to him?
Stupidity: The villains decide to eliminate the entire police force to get away with their crimes after previous attempts have been unsuccessful. We see cops caught off guard, blown up in their houses, as well as one being shot at an opportune moment. So, why would the henchman ruin their moment to strike by trying to kill Murtaugh with physical attacks when they could have blown up his house or shot him too?
Stupidity: When the guy is escaping on the helicopter at the beginning, the cops are all in position pointing their guns. Despite the baddie shooting at them, not one cop bothers to fire back (despite being fully within their right to). They just stand there and let him escape.
Answer: Leo is describing a money laundering scheme, with the intent of taking dirty drug money and making it legit. Money laundering is largely about confusing the source of the money, to make it look like it came from a legitimate source. Leo is saying that the dealer gives the money to a courier, who gives it to a guy to put it into a dummy company. The dummy company writes a check to the courier in the dealer's name. This puts about 5-6 steps in the chain of custody of the money already. The dealer takes out a loan using the check as collateral (let's say a $10000 loan with a $10000 check as collateral). The dealer never repays the loan, so the bank keeps the check (nobody loses because the amounts are equal). This puts even more steps in the chain of custody. If a law enforcement agency wanted to try and track the money back to the source, they would have to unwind all those steps, being able to prove each step occurred with evidence. Very hard to do.
oldbaldyone