Money Laundering Directive 5 What does it mean for the art trade? - - PowerPoint PPT Presentation

▶
money laundering directive 5 what does it mean for the
SMART_READER_LITE
LIVE PREVIEW

Money Laundering Directive 5 What does it mean for the art trade? - - PowerPoint PPT Presentation

Feb 03, 2023 313 likes •473 views

Money Laundering Directive 5 What does it mean for the art trade? Mathilde Heaton, Art Law Advisory 4 September 2018 Overview AML & the Art Trade Current position ? What is new ? What does it mean for the art trade ?

slide-1
SLIDE 1

4 September 2018

What does it mean for the art trade? Money Laundering Directive 5

Mathilde Heaton, Art Law Advisory

slide-2
SLIDE 2

4 September 2018

Overview – AML & the Art Trade

  • Current position ?
  • What is new ?
  • What does it mean for the art trade ?

The Responsible Art Market Initiative (RAM)

slide-3
SLIDE 3

4 September 2018

Money Laundering Regulations 2017

High Value Dealers = Cash transactions ≥ €10,000 / £9,000

  • Risk assessments
  • Policies, procedures and controls
  • Customer due diligence
  • Record keeping and reporting
  • Staff training

Risk-based AML measures

slide-4
SLIDE 4

4 September 2018

MLD 5 - What is new for the art trade ?

  • Art galleries, auction houses,

freeports, dealers, art advisors = “obliged entities”

  • Transactions ≥ €10,000 / £9,000

regardless of payment method used i.e. credit card, bank transfer, cheque or cash

“ persons trading or acting as intermediaries in the trade of works of art, including art galleries and auction houses..”

Katsushika Hokusai, Under the Wave off Kanagawa

slide-5
SLIDE 5

4 September 2018

MLD 5 – Timeline & Brexit ?

May 2018 MLD 5 adopted 29 March 2019 Brexit day Jan 2020 Implementation date for MLD 5

slide-6
SLIDE 6

4 September 2018

Jan 2020 ?

slide-7
SLIDE 7

4 September 2018

What is the Responsible Art Market Initiative (RAM)?

  • Not for profit, cross-industry initiative
  • Foster dialogue & debate
  • Practical tools & guidelines
  • Public consultations, annual conferences
slide-8
SLIDE 8

4 September 2018

Projects to date…

2017 2018

slide-9
SLIDE 9

4 September 2018

Guidelines on countering money laundering & terrorist financing risks

Guidelines Red flag lists

  • Client
  • Artwork
  • Transaction

Quick Reference Guide Country Guides

Risk-based approach Risk-based approach

slide-10
SLIDE 10

4 September 2018

slide-11
SLIDE 11

4 September 2018

AML country guides

Europe

  • France
  • Germany
  • Luxembourg
  • UK
  • Switzerland

Americas

  • USA
  • Argentina
  • Brazil

Asia

  • India
slide-12
SLIDE 12

4 September 2018

  • An aide-mémoire
  • Non-exhaustive
  • Use with risk-based approach
  • No uniform standard
  • Read with the Explanatory Notes

Art Transaction Due Diligence Toolkit

slide-13
SLIDE 13

4 September 2018

Example Red Flags

slide-14
SLIDE 14

4 September 2018

Final thoughts

  • Review AML practices & procedures now
  • Implement risk-based AML measures
  • Be alert to “Red Flags” & “trust your gut"
slide-15
SLIDE 15

4 September 2018

http://responsibleartmarket.org/

Questions ? Thank you