Key Takeaways
- The U.S. Treasury’s OFAC announced a $1,720,000 settlement with IMG Academy on February 12, 2026 for 89 apparent violations of counternarcotics sanctions.
- Two students whose parents were designated as sanctioned nationals with ties to a Mexican Drug Trafficking Organization were enrolled at IMG between 2018 and 2022.
- Annual tuition for the two students ranged from $97,867 to $102,235, paid via third-party wire transfers from Mexico.
- OFAC cited IMG for “reckless disregard” of sanctions requirements, noting the school had no formal compliance program in place during the enrollment period.
- IMG cooperated with investigators after learning of the violations and has since implemented a formal sanctions compliance program and hired a Chief Legal Officer.
On February 12, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced that IMG Academy in Bradenton, Florida agreed to pay $1,720,000 to settle potential civil liability for 89 apparent violations of federal counternarcotics sanctions.
According to OFAC, two students were enrolled at IMG between 2018 and 2022. Their parents were classified as Specially Designated Nationals under the Foreign Narcotics Kingpin Designation Act for providing financial support and services to a sanctioned Mexican Drug Trafficking Organization. Tuition payments arrived via third-party wire transfers from Mexico throughout the enrollment period.
OFAC stated that “minimal due diligence at any point throughout this process would have revealed that these customers were sanctioned.” The agency attributed the violations directly to IMG’s failure to screen incoming payments or enrollment agreements against its SDN list.
What the Settlement Reflects
The $1.72 million figure is a civil penalty, not a criminal charge. The payment goes directly to the U.S. Department of the Treasury, the federal agency that oversees OFAC and enforces sanctions law. OFAC confirmed the settlement reflects a determination that IMG’s conduct was non-egregious but was not voluntarily disclosed before federal investigators were already involved.
The identities of the students and the sports they participated in were not disclosed publicly. The tuition obligations, however, were. Payments for one student ranged from $47,026 for a half-semester to $98,867 for a full academic year. The second student’s annual payments ranged from $100,549 to $102,235.
Steps Taken After the Violations Surfaced
In a public statement, IMG acknowledged the gap directly: “Between 2018 and 2022, IMG Academy did not have an OFAC sanctions compliance program in place and entered into tuition enrollment agreements and collected fees from two individuals who were unknowingly on OFAC’s SDN List.”
The school says it disclosed the matter upon learning of the violations, cooperated fully with OFAC’s investigation, hired a Chief Legal Officer to lead a compliance review, and implemented a formal sanctions program. OFAC noted IMG had no prior violations in the five years before this period.
A Compliance Gap with Industry-Wide Implications
The IMG Academy case surfaces a compliance consideration relevant to any elite youth sports institution that routinely accepts international enrollment and wire transfers. Schools and training facilities operating at this level carry financial exposure that requires the same sanctions screening applied in commercial and financial sectors.
For operators running high-tuition academies or international boarding programs, the takeaway is straightforward: tuition intake processes need formal vetting procedures, particularly when payments originate outside the United States.
Source: U.S. Department of the Treasury, OFAC Enforcement Release, February 12, 2026. https://ofac.treasury.gov/recent-actions/20260212
photo: IMG Academy
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