Money laundering through the purchase and sale of fine art is a field with specific issues, problems and solutions.. The Responsible Art Market has published what is entitled Guidelines on Combatting Money Laundering and Terrorist Financing, designed to inform art dealers, consumers and others in the art market regarding proper AML/CFT policies and procedures, specific to their industry.
The Guidelines cover:
(1) Knowing and understanding the risks.
(2) Conducting a risk assessment of your business.
(3) Applying risk-based measures, and the need to be alert to red flags.
(4) Know Your Clients, the establishment of risk profiles, and checking for red flags.
(5) Researching the artwork, its ownership and provenance, and checking for artwork red flags.
(6) Knowing the background and purpose of a transaction, and checking for transactional red flags.
(7) The requirement to keep records.
(8) Training staff, and monitoring processes and procedures.
(9)Knowing how to act, if grounded suspicions exist.
(10) Know and comply with local laws where you conduct business.
readers who wish to review the complete text of the Guidelines may access it here.