From AP via Business Week:
Chinese authorities have found seven big underground banks involved in money laundering cases worth more than 14 billion yuan (US$1.75 billion;euro1.3 billion), the official Xinhua News Agency said Tuesday.
Police arrested 44 people suspected of involvement in the undergound banks, found in Shanghai, Guangdong, Inner Mongolia, Liaoning and Heilongjiang, Xinhua cited Han Hao, an economic crime investigator with the Ministry of Public Security, as saying.
The biggest case so far, reported earlier this month, involved a money laundering operation operated by a Singaporean in Shanghai, suspected of handling 5 billion yuan (US$630 million).[Full Text]
-Also read BBC story Chinese police raid illegal banks