The school said it also will restrict its recruiting by limiting official and unofficial visits and cutting the number of recruiting days this year from 130 to 126. The school also plans to pay a $5,000 fine.
UConn fired Ollie after a 14-18 season a year ago, citing numerous NCAA violations.
The NCAA investigated and sent the school a notice of allegations in September, which detailed alleged unethical conduct by Ollie for allegedly providing false or misleading information about video calls to a recruit from two former UConn stars, Hall of Famer Ray Allen and San Antonio Spurs guard Rudy Gay.
"Our athletics department recognizes its responsibility to promote an atmosphere of honesty and integrity as it relates to NCAA compliance and beyond," UConn athletic director David Benedict said in a statement. "We take these allegations very seriously and will continue to fully cooperate with the NCAA throughout this process."
UConn is hoping to avoid any further sanctions from the NCAA, but says it understands that the Committee on Infractions can do as it sees fit.
"I understand the decision by our athletic administration to impose these penalties," coach Dan Hurley said. "We have been preparing for this eventuality and will make the necessary adjustments to move forward."
Information from The Associated Press was used in this report.