The sanction comes after the club was found to have breached FIFA regulations on the international transfer and registration of players under the age of 18.
FIFA's Disciplinary Committee found the club guilty of 29 breaches of Article 19 , which relates to violations regarding the registration of minors at the London outfit's academy.
Chelsea's women's and futsal teams are not covered by the ban, while it also does not affect the release of players from their contracts.
The club has also been fined $599,535 and has been given 90 days to regularize the respective situations of the relevant players.
Chelsea retain the right to appeal the sanctions, both to FIFA and to the Court of Arbitration for Sport (CAS).
The Premier League club did not immediately respond to CNN's request for comment.
More to follow.
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