The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed a penalty of USD 4,677,552, the highest ever levied against an individual, for violations of Russia related sanctions and failure to comply with an administrative subpoena.
Between April 2023 and March 2024, the offender facilitated the purchase, renovation, and sale of a residential property owned by a person blocked under the applicable sanctions, despite receiving formal notifications prohibiting any transactions involving the property. The sale was completed to a buyer unaware of the property’s legal status and in direct violation of a cease-and-desist order issued by OFAC.
The investigation concluded that the violations were deliberate, repeated, and self-reporting was not made, qualifying them as highly serious. Furthermore, the individual provided incomplete or false information and exposed third parties to legal and financial risks.
The historic penalty highlights the risks of non-compliance and the obligation to conduct thorough due diligence on the legal status of assets before engaging in any transaction.
