What three things do art market participants need to know before engaging in transactions over €10,000?
The high end of the global art industry is an opaque world of often secret acquisitions, cautious collectors, subjective valuations, and high-value cross-border movement of artwork and funds. These inherent characteristics may protect the privacy and security of genuine buyers and their prized pieces, but they also make the art industry a magnet for criminals seeking to launder their ill-gotten gains.
Recent regulatory changes are starting to bring the art industry in line with regulated industries such as financial services. In the UK, changes have been made to money laundering regulations to reflect the requirements of the EU’s Fifth Anti Money Laundering Directive (5AMLD) that came into force on January 10, 2020.
With these new obligations in mind, what do art market participants (AMPs) need to know before engaging in transactions over €10,000? FRA expert advisors Anant Modi and Shaf Sohail discuss how art businesses need to identify their risks and control gaps at the outset and help lay a solid foundation for compliance, embracing new regulation in the way successful financial institutions have done.