Forensic & AML services for art market professionals | Brochure
Understanding the global art market and its needs against financial crime
The art market presents a significant target for financial crime. Art works are high value goods that can be readily transported, and are traded in a market defined by discretion where protecting client privacy is paramount. For these reasons, both fraudulent and money laundering activities can become an issue in the art world.
The recent case at a major auction house in Paris that sold a painting without verifying its origin, nor establishing the identity of the vendor, exposed the firm to money laundering and resulted in a suspension of one of its auctioneers. This has brought to light the need for performing regular due diligence on vendor, purchaser and to the extent possible, the art piece itself, as one of the necessary safeguards against financial crime.
“Knowing Your Counterparties” does not consist in merely collecting ID documents but calls for actual understanding of the counterparties background and their source of wealth.
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