As anti-money laundering (AML) regulation has expanded into the art market, art advisors must carefully assess whether their activities bring them within scope as ‘art market participants’ (AMPs). 

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Advisors under UK Money Laundering Regulations:

Under UK Money Laundering Regulations, AMPs are businesses that trade in, or act as intermediaries in, the sale or purchase of works of art where the transaction value is €10,000 or more.

For art advisors, the distinction turns on function, not title. Where an advisor or intermediary becomes actively involved in a transaction, negotiating terms, arranging a sale, handling funds, or acting on behalf of a client, they are likely to be considered an intermediary. 

In these circumstances, advisors must register with HMRC and comply with AML obligations and undertake measures in line with broader businesses in the trade. 

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Key steps:

• Confirm whether your activities qualify you as an intermediary under the AMP definition and register with HMRC.

• Conduct and document a business-wide risk assessment and establish written AML policies, controls, and procedures.

• Due diligence must meet standards set for all AMPs. This includes performing customer due diligence (CDD) on clients and beneficial owners, verifying source of funds where risk factors are present.

• Any staff need training on identifing and reporting suspicious activity, with accurate records kept of transactions and due diligence undertaken

• Submit suspicious activity reports (SARs) must be filed where required.

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