An over £1.2 million fine was imposed on Bradenton's IMG Academy after discovering that the prestigious sports boarding school accepted tuition and other payments from individuals associated withMexican drug cartels.

The Florida Commission for Independent Education (FCIE) sanction follows a lengthy investigation into the academy's financial review process for international students, which state authorities claim failed to identify suspicious funding sources connected to organised crime.

Suncoastreports that IMG allegedly accepted tuition and other fees payments from parents who are listed on sanctions for providing financial support to a 'Mexican Drug Trafficking Organisation and/or to its principal leader.'

FCIE, however, did not disclose the names of the students nor the parents in the release. According to the order, the tuition payments were between £72,288.97 ($97,867) to £75,515.37 ($102,235) per academic year.

The acceptance of 89 total payments, which included wire transfers from third-party individuals in Mexico, was in violation of the Foreign Narcotics Kingpin Sanctions Regulations, according to the release.

While IMG Academy continues to cooperate with authorities during the investigation, regulators concluded that the institution's policies did not go far enough and were insufficient in scrutinising high-risk payments, especially those coming from areas recognised for money-laundering risks.

Investigators received tips about unusual payment patterns involving students with ties to organised crime figures, which then prompted authorities to examine IMG Academy's financial records.

The inquiry included subpoenas for bank records, staff interviews, and data analysis of payment trails that linked to sources allegedly connected to Mexican drug trafficking organisations.

Documents released by the state indicate that some parents used intermediaries to transfer money for tuition, room and board, and other fees – all of which raised red flags to the investigators during review. Regulators also observed that insufficient proactive due diligence by the academy allowed the said transactions to happen without proper oversight.

Authorities emphasised that tracing cartel-related funds proves to be challenging when payments are routed through multiple accounts and third-party channels – practices commonly linked with money laundering.

Source: International Business Times UK