Alibaba Group Holding and U.S.-based payment processor AUS Merchant Services have agreed to pay a combined $600 million under non-prosecution agreements to resolve U.S. allegations that they failed to prevent the sale and import of illegal pharmaceuticals and related products into the United States. The Justice Department said Alibaba admitted that merchants on its Alibaba.com and AliExpress platforms conducted about 80,000 illegal product sales into the United States between 2016 and 2024, with a combined gross merchandise value exceeding $200 million. AUS admitted deficiencies in its anti-money laundering and transaction monitoring systems that allowed some merchants to use its payment services to facilitate the sales. Under the agreements, Alibaba will pay a $125 million criminal penalty and forfeit $200 million, while AUS will pay an $85 million criminal penalty and forfeit $190 million. Both companies also agreed to strengthen their compliance programs.
Alibaba Group Holding LtdAlibaba admitted to facilitating illegal pharmaceutical sales and agreed to pay $325 million in penalties and forfeiture.
AUS admitted AML deficiencies and agreed to pay $275 million in penalties and forfeiture.