The “Center for Art Law Report on Anti-Money Laundering and Art” [1]is an enlightening and comprehensive guide that explores the practices of Anti-Money Laundering (AML) in the art sector across EU member states and the UK, following the enforcement of the EU’s 5th AML Directive in 2018. This Directive brought the art world under closer scrutiny by EU’s AML regulations, particularly due to the increasing association of art financing with terrorist activities.

What sets this report apart is its pioneering effort in compiling a guide of this nature. It features survey responses from leading Art Law experts across 14 jurisdictions, offering valuable insights. The report delves into the specific AML laws that apply in each country, their approach to Non-Fungible Tokens (NFTs), and the array of sanctions in place. Not only does this approach provide a comprehensive understanding of the diverse legal landscapes, but it also raises awareness about the implications for participants in the art market throughout Europe and beyond.

In Austria, the approach to AML is comprehensive and encompasses various laws, such as the Financial Markets Anti-Money Laundering Act, the Beneficial Owner Registry Act, and the Trade Act. These regulations prioritize due diligence, identification of beneficial owners, and ongoing monitoring of business relationships. Special attention is given to Politically Exposed Persons (PEPs) and transactions involving high-risk countries, requiring enhanced due diligence. Failure to comply with these regulations can result in significant sanctions.

In Belgium, a law was enacted in response to the EU AML 5th Directive, which came into effect on January 1, 2022. This law applies to art transactions and covers art galleries, dealers, auction houses, and freeports, but excludes artists and public museums. It defines ‘works of visual art’ and clarifies that NFTs are generally not included in this category. The AML regime in Belgium mandates the registration of art market participants and applies to those engaging in regular trading activities involving artworks.

These insights into Austria and Belgium exemplify the EU’s approach to AML regulations in the art sector. They demonstrate the meticulous regulatory frameworks and specific compliance requirements imposed on art market participants. However, it is unfortunate that the document did not provide direct comparisons with the US approach, which would have offered a more comprehensive understanding of the differences between the two regions in combating money laundering in the art world.

The perspective on Anti-Money Laundering (AML) in the art market differs significantly in the United States. In the U.S., the main legislation governing AML is the Bank Secrecy Act (BSA), which was established in 1982 and later amended by the Anti-Money Laundering Act of 2020, a part of the National Defense Authorization Act (NDAA) of 2020. The latter specifically addresses the regulation of “antiquities.”

Here are key aspects of the U.S. Art AML Regulations:

1. Scope of Regulation: The AML Act of 2020 includes provisions for individuals “engaged in the trade of antiquities.” This encompasses advisors, consultants, and anyone involved in the business of selling antiquities. However, the exact definition of institutions or individuals to be included under these regulations is still being finalized.

2. Rulemaking and Implementation: The responsibility for determining the scope of rulemaking lies with the U.S. Treasury, in conjunction with the FBI, Attorney General, and Homeland Security. Factors such as business size, type, and location will be considered when deciding which individuals or businesses should be regulated.

3. Concerns by FinCEN: FinCEN, a part of the U.S. Treasury, has expressed concerns regarding money laundering and terrorist financing in the trade of art and antiquities.

4. Proposed Rulemaking: In 2021, FinCEN published an Advanced Notice of Proposed Rulemaking, seeking feedback on various aspects related to the application of the BSA to the trade of antiquities. However, as of July 2023, no regulations pursuant to the AML Act have been drafted or proposed, and FinCEN has surpassed the deadline set by Congress for taking this action.

5. High Risks/Red Flags: The specific high risks or red flags associated with money laundering in the art market are yet to be clarified in the implementing regulations. However, there is a focus on high-value trades in antiquities and the identification of actual purchasers, as well as agents or intermediaries involved in transactions.

6. Record-Keeping and Reporting Requirements: Current regulations for financial institutions include reporting cash transactions exceeding $10,000 and filing Suspicious Activity Reports (SARs). However, the specific requirements for antiquities dealers and a broader range of participants in the art market are still being finalized.

7. Reporting System: FinCEN provides an e-filing system for SARs, enabling regulated entities to report suspicions of money laundering.

The approach taken by the United States is still in the development stage. Key aspects, such as the scope of regulations, high-risk factors, and specific reporting and record-keeping requirements, are yet to be finalized. This stands in contrast to the more established and detailed frameworks in the European Union, where the 5th Directive has been implemented across various member states, accompanied by specific guidelines for art market participants.

While this report is innovative and comprehensive, it is important to note that it does not constitute legal advice. Rather, it serves as a valuable compilation that enhances our understanding of the intricacies of Art AML laws. The inclusion of the US approach for comparison purposes adds an extra layer of depth, making it a must-read for professionals and enthusiasts alike who are eager to navigate the complex intersection of art and AML regulations. Overall, this is an excellent read for anyone interested in either anti-money laundering laws or the global art market.

[1] Center for Art Law is a Brooklyn-based nonprofit that offers educational resources and programming for the advancement of a vibrant arts and law community. Center for Art Law – At the intersection of visual arts and the law (itsartlaw.org)

The belief that rest is a fundamental human right grounds the works of LaToya Hobbs, a Baltimore-based artist who carves stylized woodblocks of Black women. Often using her family, friends, and self as subjects, Hobbs creates densely textured prints and paintings depicting quiet moments of affection and connection.

In “Erin and Anyah with Hydrangeas,” two young women—Hobbs’ stepdaughter and niece originally photographed by the artist’s husband Ariston Jacks—look directly at the viewer. One rests her head on the other’s shoulder, with puffy white flowers decorating the pinstriped backdrop. In “Flourish,” a thriving snake plant and anthurium frame the room and subject, who sits comfortably on a chair and peers out the window.

“Unbothered” (2023), woodcut on Rieves BFK cotton paper, 24 x 32 1/4 inches

Emphasizing the necessity of care for oneself and others, these portraits are included in Hobbs’ upcoming solo show at Frist Art Museum in Nashville. Opening early next year, Carving a New Tradition celebrates the artist’s significant contributions to printmaking and considers how her oeuvre amends the art historical canon. The show contains works on paper and painted carvings, along with interpretations of works by artists like Alma Thomas, Kerry James Marshall, and Elizabeth Catlett, who often depicted Black mothers with reverence and strength.

While Catlett tended to present her subjects working, Hobbs offers an alternate mode of being, instead focusing on rest and relaxation. “The act of carving and its removal of material carries symbolic meaning related to the carving away of negativity and stereotypes needed to reveal the real version of oneself,” she says. Gouged with impeccably thin lines and delicate crosshatching, the works evidence the artist’s laborious process and profound admiration for the tactile, in both the tangible, ridged properties of her carvings and the connections elicited by human touch.

Carving a New Tradition will run from January 26 to April 28. Until then, find more of Hobbs’ work on her site and Instagram.

“Flourish” (2023), acrylic on carved wood panel, 96 x 96 x 2 1/2 inches

Detail of “Carving Out Time” (2020–21), oil-based printing ink and acrylic paint on 15 carved cherry plywood panels; 96 x 720 inches. Image courtesy of The Baltimore Museum of Art

“In need of rest” (2023), woodcut, 4 1/2 x 33 inches

“A Moment of Care” (2023), woodcut; 32 1/4 x 24 inches

Do stories and artists like this matter to you? Become a Colossal Member today and support independent arts publishing for as little as $5 per month. The article LaToya Hobbs Emphasizes the Tactile in Her Laboriously Carved Portraits of Black Women appeared first on Colossal.

Concerns about future of the art market in the U.K. have occupied the industry over the past several years, as galleries, auction houses and collectors have faced economic hurdles caused by Brexit, the pandemic, and the war between Ukraine and Russia. But what exactly do the financial figures say?

The British Art Market Federation has commissioned Clare McAndrew’s firm Arts Economics, which also conducts the UBS Art Basel art market report, to dive deep into U.K. art market data. The result is the first of its kind financial report focusing on the British art trade since 2017. Here are five key takeaways.

The U.K. is still the world’s second biggest art market—for the time being

The U.K.’s art market accounts for 18 percent of the global industry by value in 2022, according to the report, making it the world’s second biggest behind the U.S., which had a 45 percent share. It swapped positions with China, which came in second with 20 percent in 2021, when the U.K. occupied third place with 17 percent. China’s market share dropped to 17 percent in 2022, making it the world’s third largest.

Global Art Market Share by Value 2022. Source: British Art Market Report 2023. Courtesy British Art Market Federation and Arts Economics. © Arts Economics (2023).

The French art market is not as big as most people think, despite the hype

The art world has been pivoting towards Paris in recent years, amid Brexit and the premiere of and welcome reception for the art fair Paris+ by Art Basel. International dealers have also been flocking to the city, further fueling the hype of Paris taking over London as Europe’s art market hub.

But Art Economics’s report suggests that the idea of Paris ousting London from its cultural throne is far from reality. France is the fourth biggest art market, but it only holds seven percent of the global share in 2022, less than half of that of the U.K. The U.K. also holds a bigger share than the European Union altogether, which had a 12 percent share in the same year.

But U.K.’s art market share had been declining long before Brexit 

Many industry players, from dealers to auction houses and art fair operators have been citing how Brexit has been affecting their businesses since the decision to leave the European Union came into effect in January 2020. But how bad is it?

The U.K. accounted for 20 percent of global art sales in 2020, the year when the country officially left the E.U. The country’s art market sales also hit the lowest in that year with a total at $9.9 billion.

The country’s art sales gradually picked up in 2021, totaling $11.4 billion, and inched forward to $11.9 billion in 2022. The market share percentage in 2021 (17 percent) and 2022 (18 percent), however, fell below that of 2020. It also remained below the pre-pandemic level of $12.2 billion in 2019.

The declining trend, however, began much earlier. In fact, since its 2008 peak, when the U.K. cornered 34 percent of the global art market, its share has been steadily dropping through to 2016, when it had a 21 percent portion.

By comparison, the U.S. market appears to be recovering well from the pandemic. From 2020’s $21 billion in art sales (a 42 percent share of the global market) its share rose to $28 billion in 2021 (43 percent) and $30.2 billion in 2022 (45 percent).

The Treasure House Fair, London. Courtesy of the Treasure House Fair.

The U.K. is selling fewer high-value artworks at auctions

The report also took stock of the sales of high value artworks, noting that the U.S., the U.K., and China, the world’s top three art markets, together accounted for 96 percent of the auction sales of lots over $1 million, with 32 percent of the lots priced at $10 million or more.

The U.K.’s share in this category has been declining, however. In 2022, 14 percent of the lots valued at more than $1 million were sold at U.K. auctions, and 13 percent were priced more than $10 million. The numbers were up slightly from 2021 but they were substantially lower than those in 2019, where the U.K. accounted for 19 percent of lots pricer over $1 million and 18 percent of those more than $18 million.

The U.K. art market’s global status hinges on its cross-border trade

Global trade is decisive on whether a place can be an art market hub and this can be reflected by its imports and exports. Data from the U.N. Comtrade collected by Arts Economics showed that the U.K.’s imports of art and antiques dropped significantly after Brexit, from $3.2 billion in 2019 to $2.1 billion in 2020, dipping further to $1.9 billion in 2021 before climbing back up to $2.8 billion in 2022. The trend also corresponded to the decline of the U.K.’s global art market share.

Import and export data collected from the U.K. government’s customs bureau HMRC shows that the trade has been declining since 2019, with non-E.U. trade accounting for 55 percent of the imports and 71 percent of exports in 2022.

New works by Damien Hirst at Gagosian’s booth at Frieze London. Photo: Linda Nylind, courtesy of Linda Nylind/Frieze.

Although artworks can be brought in to the U.K. under temporary admission, dealers have said that the increasing red-tape for imports and exports of artworks after Brexit has made it more challenging to bring art to sell in the U.K. While places like the U.S. and Hong Kong, which is the main art trading hub of China, have no tariffs on art (but tariffs are applied on art imported from China to the U.S.), this is not the case in the U.K.

The U.K. government has vowed to review these measures in 2024.

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