U.S. OFAC imposes $7.1 million penalty on property management company for sanctions violations
Violations of Ukraine/Russia-related sanctions
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced a $7,139,305 penalty on a New York-based property management company for violating Ukraine/Russia-related sanctions and failing to report blocked assets.
According to the enforcement release, between April 2018 and May 2020, the company received 24 payments on behalf of a company owned by a sanctioned Russian oligarch, despite prior notice from OFAC prohibiting such dealings. Additionally, the company did not report blocked assets for over 45 months.
The company began receiving payments in 2013 on behalf of a British Virgin Islands-based company affiliated with the oligarch. OFAC sanctioned the oligarch in 2018, notifying the company that dealings with the individual were prohibited. Despite this, the company continued to receive payments until May 2020.
The violations were deemed egregious and not voluntarily self-disclosed, leading to the substantial penalty.