Art-рынок the UK learns to live in a new environment
ARTinvestment.RU   20 февраля 2020

The EU Directive on combating money laundering changes the existing years of the scheme sales and dealer interaction with the customer

the EU Directive known as AMLD5, entered into force on 10 January 2020, but to follow it, the market was not ready. For training staff in new sales schemes, many galleries and institutions had to hire staff to control money laundering.

the Main principle in trade art must now become the principle of KYC (Know Your Client — know who your client is). From now on, in any transaction, the amount of which is equivalent to or greater than €10 million (£8.5 million or $11 million), the seller (private dealer, auction house or gallery) must conduct a full verification of the identity and origin of money, the beneficial owner of the purchased. Analysts in the art market believe that the British gallery, the market may suffer the most despite the fact that the Directive applies in all EU countries, sales in London historically more expensive than in continental Europe. And while the UK has 11 months to "Brakcet" finally entered into force, it is obliged to obey the EU laws.

the Result should be an assessment of the likelihood that the transaction has been conducted for the purpose of money laundering or were directed to financing of terrorism. Of any suspicions regarding the origin of the client money the person conducting the test must report to law enforcement agencies. Non-compliance and violation of the procedure may lead to a fine or imprisonment of the seller.

This check — part of everyday work for lawyers, accountants and employees of the banking sector, however, for many representatives of the world of art and collecting it was a real surprise and is perceived as what-то very unusual. The international Confederation of art and antique dealers Association has expressed concerns that additional testing can prevent collectors to buy works of art in London. At that time, as representatives of individual galleries declare that anything really new, but a couple of additional email exchanges in their trading process this innovation has brought several galleries at the fair London Art Fair, held in January 2020, had been convicted of artificially low prices for their work up to the amount of €10 thousand And some galleries, before introducing the procedure of security checks, had to conduct additional outreach among their clients because of the galleries now need to know not only the client, with whom they deal directly, but also the entire chain of intermediaries, including information about agents, assistants, art-консультантах and other intermediaries, the traditional task of which was to preserve client confidentiality. This requirement is more difficult for the galleries.

a Plus in this story for the galleries is that the additional steps of verification of the identity of the customer make them less vulnerable to cybercrime. In addition, during the compliance procedure of verification scammers have virtually no chance, posing as a customer, or his representative, to intercept the sale. And most likely, later-то time gallery-the market will find a way of existence under the new rules — as an optionusing the experience of auction houses, many of which verification procedures of customers has become a common practice.

Source: news.artnet.com



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