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The president of boxing promoter Probellum has denied any connection between the company and Daniel Kinahan, and said they would drop any fighter who continued to be advised by him.
US authorities have offered a $5m (£3.84m) reward for information on the three most senior members of the Kinahan organised crime group.
IBF flyweight champion Sunny Edwards, who is represented by Probellum, previously called Kinahan an "old friend" on social media.
Kinahan has previously worked with world champions Tyson Fury and Josh Taylor.
There are no allegations of wrongdoing against any boxers who have worked with Kinahan.
But Schaefer made it clear in an interview with BBC Sport that any fighter on Probellum's books would need to cut ties with Kinahan otherwise the company would not promote them.
He said: "[Kinahan] has advised some of the fighters who are promoted by Probellum, just like he has worked with many other fighters which are promoted by leading promoters around the world.
"But that was then, now is now. The fact is he had at no point any interest whatsoever in Probellum.
"[Each] fighter is going to have to take a decision if he or she wants to continue to be advised by Mr Kinahan.
"I am certainly going to respect that decision but that fighter, irrespective of who he is or who she is, will have to respect our decision as well, which would mean that we would no longer be able to work with them. That is very clear."
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He added: "If [a fighter] has a business relationship with Daniel Kinahan, we will not promote him."
Schaefer said he would class an advisory role as a "business relationship".
In response to the recent action taken against Kinahan, Schaefer said: "We take these sanctions very seriously and, of course, in no way, shape or form will we do anything to undermine or jeopardise these sanctions.
"This is not going to be a grey zone - maybe we can do this, maybe we can do that. No, this is black and white."
In March, a Pakistani politician drew a link between Kinahan and Probellum in a post on social media, which included pictures of himself with the Irishman.
Punjab sports minister Rai Taimoor Khan Bhatti said: "Met Probellum on aligning vision on boxing for Punjab and how to make this sport bigger for our youth.
"Looking forward to hosting Daniel in Lahore to discuss Pakistan's first International fight with foreign world class boxers."
Schaefer said the minister had held a short meeting with an executive of Probellum in Dubai, but it was separate to his meeting with Kinahan.
He said that the minister's post was "misleading" and Probellum had asked for it to be removed.
Asked if he would share information about Kinahan with law enforcement agencies, Schaefer replied: "I'd be happy to but I really don't know anything. We are totally transparent, and to whatever extent there would be information which would be deemed important, of course, yes."
The trademark for Probellum was registered by MTK Global, the promotion company co-founded by Kinahan - which represents leading fighters including Tyson Fury - and the two companies share several fighters.
Kinahan says he cut ties with MTK Global in 2017.
"At no time was there any, be it financial, managerial or board involvement between MTK and Probellum. Never, ever," Schaefer said.
"Given these recent developments, I have asked our attorneys to look into MTK for us to fully understand what the ownership structure of MTK is.
"If, in fact, there are any links between MTK and Mr Kinahan then that would mean we can no longer work with MTK either."
Schaefer said he felt the allegations surrounding Kinahan highlighted a need for more regulation in boxing.
After a BBC investigation revealed his continued presence in the sport last year, Kinahan insisted that allegations of criminality were part of a "campaign" against him.