OFAC Imposes $7 Million Penalty on Company Tied to Sanctioned Russian Oligarch

Gracetown violated U.S. sanctions despite notice from OFAC that dealings with Kremlin-connected oligarch were unlawfulWASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed a $7,139,305penalty on Gracetown Inc., a property management company in New York, for violating OFAC’s Russia-related sanctions and for failing to report blocked assets to OFAC. This enforcement action, which resulted in a penalty near the statutory maximum, highlights the importance of following OFAC-issued guidance and the significant consequences that can occur from failing to do so.“Treasury will act firmly against those who ignore our sanctions and aid our adversaries,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K.