Alibaba Group Holding (BABA) and its US-based payment processor, AUS Merchant Services, agreed to pay a combined $600 million to resolve US allegations over illegal product sales on the company's e-commerce platforms, the US Department of Justice said Wednesday.
The department alleged Alibaba failed to prevent about 80,000 transactions involving illegal pharmaceuticals, controlled substances, listed chemicals and pharmaceutical equipment imported into the country through Alibaba.com and AliExpress between 2016 and 2024.
AUS also admitted shortcomings in its anti-money laundering controls that failed to prevent payments tied to some prohibited sales, the report said.
Alibaba will pay a $125 million criminal penalty and forfeit $200 million, while AUS will pay an $85 million penalty and forfeit $190 million. Both companies also agreed to strengthen compliance programs and continue cooperating with US authorities.
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