The long awaited report seems to wash over many of the problems existing in the upper end of the art market and makes only a passing reference to the sale of NFTs and the use of hard to trace cryptocurrencies.
financial system and identified efforts that government agencies, regulators, and market participants could undertake to further mitigate the laundering of illicit proceeds through the high-value art market in the United States.
Several qualities inherent to high-value art – the way it is bought and sold and sure market participants – may make the high-value art market attractive for money laundering by criminals.
“As we tackle systemic challenges like corporate transparency and other loopholes that allow criminals to abuse the U.S.
The study found that while there is some evidence of money laundering risk in the high-value art market, there was limited evidence of terrorist financing risk.
To address the identified risks, the study recommends consideration of several non-regulatory and regulatory options: Encouraging the creation and enhancement of private-sector information-sharing programs to foster transparency among art market participants; updating guidance and training for law enforcement, customs enforcement, and asset recovery agencies; using FinCEN recordkeeping authorities to support information collection and enhanced due diligence; and applying AML/CFT requirements to sure art market participants and obligating them to create and maintain AML/CFT In considering these steps, Treasury will consider how these measures could mitigate identified money laundering risk, the potential burden on more minor art market participants, privacy considerations, and progress on addressing systemic AML/CFT issues, such as the abuse of shell companies.
ArtLyst is the UK’s leading art information website.