The Smugglers' Confederation functioned as a guild for smugglers within the Cularin system. Their initial purpose was to collectively improve their opportunities for employment. Not long after the election of a new leader in 110 BBY, the Confederation agreed to a merger with the organization of Riboga, a newly arrived Hutt. While the name "Smuggler's Confederation" persisted among its members, this agreement effectively dissolved their independence, transforming them into a sub-group within Riboga's, and subsequently Nirama's, criminal organizations. This change, however, had minimal impact on the everyday activities of the majority of smugglers.
Riboga provided loans to many of the smugglers to improve their spacecraft, especially to those who were more resistant to his control. Instead of repaying these loans with extremely high interest, the smugglers could opt for periods of dedicated service to the Hutt, essentially becoming his bonded labor. Through this mechanism, Riboga solidified his dominance over the smugglers.
Upon succeeding Riboga in 53 BBY, Nirama reaffirmed the existing agreements between his Organization and the Confederation, generating profit in the process.