Recently Artnet published how US regulation of the art market is likely to be passed by congress in the coming year. To get you up to speed we have summarized what you need to know heading into a regulatory landscape.
June 26, 2022
Recently Artnet published how US regulation of the art market is likely to be passed by congress in the coming year. As a platform that has helped UK galleries navigate the often complex and confusing world of Anti Money Laundering and Due Diligence we know adapting to this new landscape with least amount of disruption is of the utmost importance.
To get you up to speed we have summarized what you need to know as a US gallery heading into a regulatory landscape.
What is the current situation?
In the same way UK & EU galleries, dealers and businesses trading in works of art are required to carry out due diligence under AML regulation, the Enablers Act bill will require all US-based art and antique dealers to do the same. While a similar act was passed (The Corporate Transparency Act) which requires those dealing in antiquities to follow the anti-money laundering provisions of the Bank Secrecy Act, it did not include art and antique dealers.
Now, the Enablers Act has been included in a bigger act: The National Defense Authorization Act, making it likely that it will be approved by the house later this year.
What does this mean for US Galleries?
The information above can feel very legal and political. To break it down into applicable terms, US galleries and dealers are going to have to put systems and procedures in place to perform due diligence on their clients in order to ensure that the funds being used to buy high value items are legitimate. Many do not have the infrastructure in place to do this safely, securely and thoroughly and will need guidance on how to succeed under this new regulatory landscape.
How can we help?
We have experienced the frenzy of an unregulated market meeting regulatory requirements here in the UK/EU. We have assisted galleries, dealers, advisors, auction houses and online art marketplaces to not only meet their legal requirements, but to also integrate their due diligence process into their sales pipeline, leading to higher sales retention and less disruption.
We arm galleries with sufficient evidence - and information - so they can transact with any customer with confidence. Working with numerous US-based art businesses already, we can help US based community members learn from the UK to create a seamless transition.
The Enabler’s Act and what it means for both US galleries and UK galleries working with them.
What is due diligence and what kind of information you will need to request.
The processes and procedures necessary to conduct due diligence.
Sending and storing information safely and securely.
Challenges that AML presents for the US Art Market and how to rise above them.
Lessons from UK businesses who have been navigating this landscape for 2 years.
How to integrate due diligence into your sales pipeline.
We look forward to equipping the international art market with the tools they need to succeed. In the meantime check out the articles on our stories page to get familiar with due diligence for the art market and the members of our growing community.