Alibaba and AU Merchant Services Admit Failure in Blocking Illegal Drug Transactions

According to the Justice Department, Alibaba acknowledged that from 2016 to 2024 its marketplace was used by sellers to move prohibited drugs, listed chemicals and counterfeit‑producing equipment into the United States. Although the company had policies aimed at restricting such items, internal staff warned that the control mechanisms were insufficient. Some sellers even used Alibaba’s internal messaging system and encrypted third‑party platforms to evade detection. AU Merchant Services also conceded that its anti‑money‑laundering program failed to identify high‑risk payments linked to restricted products between 2020 and 2023, allowing prohibited sales to continue despite internal alerts.