Supplier/Distributor

Suppliers or distributors abroad may be paid directly with proceeds from smuggled goods, enabling further illicit trade. This arrangement:

• Creates transaction records that resemble standard commercial payments, masking the criminal origin of funds.
• Frustrates financial institutions' monitoring, as cross-border transfers appear routine while actually financing new contraband shipments.

Suppliers and distributors in the chemical or pharmaceutical sectors are co-opted to:

• Provide or transport precursor chemicals and equipment diverted to illicit drug manufacturing.
• Overlook or fail to detect unusual orders or inconsistencies tied to criminal actors.
• Further enable large-scale drug production, fueling continued narcotics trafficking cycles.

Suppliers or distributors participate in inflated transaction pricing by:

• Overcharging for goods or services in contracting or procurement.
• Diverting the excess to conspirators as kickbacks or bribes.

These overstated invoices pass through financial systems as normal business expenses, evading scrutiny of unusual payment flows.

Suppliers or distributors of precursor chemicals, often based in high-risk jurisdictions, accept and fulfill orders from illicit networks. They:

• Receive layered payments from front companies or disguised accounts without verifying the origin of the funds.
• Ship precursors labeled under inaccurate or misleading product descriptions, complicating financial and customs checks.

Legitimate suppliers or distributors are unwittingly exploited when attackers spoof their email accounts or communications. This deception leverages the existing trust between the vendor and payer, leading financial institutions to process these transactions as normal settlements without immediate suspicion.