The international art market and money laundering
The international art market is capable of laundering massive sums of illicit funds throughout the world.
Effective January 10th 2020 is new legislation for the United Kingdom and the European Union that governs anti-money laundering regulations within the market for art and antiquities. New and existing clients must produce identification when purchasing works of art above €10,000.
Galleries will require a compliance program to ensure all reasonable measures have been taken to prevent payment by illegally obtained funds.
The provenance of the funds involved will become just as important as the provenance of the artwork.
Are such measures necessary? Seasoned financial intelligence professionals will answer with a resounding “Yes”.
For the professional money launderer, the international art market offers an extensive palette of transactions, geographies, players and industry conventions for placement, layering and integration.
The professional money launderer will exploit the following characteristics of the international art market:
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