Key Highlights
- IMG Academy fined $1.7 million for accepting tuition from parents linked to Mexican drug cartels.
- The incident occurred between 2018 and 2022 at the elite academic and sports training academy in Bradenton, Florida.
- IMG demonstrated “reckless disregard” according to the U.S. Treasury Department.
- The Treasury Department’s Office of Foreign Assets Control announced the settlement on February 12, 2026.
IMG Academy’s Fine: A Cautionary Tale in Financial Compliance
IMG Academy, a prestigious institution known for its top-tier training programs, has learned the hard way about the importance of financial compliance. The academy agreed to pay a hefty $1.7 million fine after accepting tuition fees from parents linked to Mexican drug cartels. This is not just a case of poor judgment; it’s a stark reminder that even elite institutions are vulnerable when it comes to stringent regulatory checks.
Background and Incident
Between 2018 and 2022, IMG Academy enrolled two students whose parents were on the U.S. Treasury Department’s sanctions list for providing financial support to a Mexican Drug Trafficking Organization (DTO). The Treasury Department’s Office of Foreign Assets Control (OFAC) announced this settlement on February 12, 2026, highlighting the severe consequences of non-compliance with U.S. sanctions.
Reckless Disregard and Consequences
The fine was imposed because IMG Academy demonstrated “reckless disregard for U.S. sanctions requirements,” according to the Treasury Department’s release. The academy accepted tuition, lodging, and other fees from parents who were knowingly on a sanctions list, involving wire transfers from third-part individuals in Mexico. These payments ranged between $97,867 to $102,235 per academic year, totaling 89 payments over the period of enrollment.
“This conduct allowed the children of two of the designated DTO’s leaders to obtain elite academic and athletic training services in the United States,” the Treasury Department stated. The financial implications are significant, but the reputational damage can be far more lasting for an institution like IMG Academy, which prides itself on its high standards.
IMG’s Response
In a statement, IMG Academy acknowledged their mistake and outlined steps taken to ensure compliance moving forward: “IMG Academy is committed to maintaining the highest standards of compliance and integrity in all aspects of our operations. 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.”
They continued by emphasizing their cooperation with the investigation: “Upon becoming aware of their status, we disclosed the matter to OFAC and fully cooperated with its investigation. Since that isolated incident, extensive measures have been taken by IMG Academy to implement a comprehensive sanctions compliance program.”
Lessons for Other Institutions
The IMG Academy case serves as a wake-up call for other educational institutions and companies handling international payments. It underscores the necessity of robust compliance programs, especially in industries where financial transactions are frequent and complex. The fine is not just about money; it’s about ensuring that all parties involved understand their obligations under U.S. sanctions laws.
While IMG Academy has taken steps to rectify the situation, the incident highlights how even minor oversights can lead to significant repercussions. For other organizations navigating international waters, this case should serve as a cautionary tale and a reminder of the critical importance of thorough due diligence and compliance measures.