Give art market regulation a chance

Abstract

The article discusses the extension by Directive (EU) 2018/834 of new compliance obligations to art market participants against the background of a criminological examination of different types of laundering operations occurring in the art market. It highlights how this sector is a potential hub for ‘traditional’ money laundering operations as well as the target of antiquities trafficking which potentially finances other illicit activities such as terrorism. The relevance of an often-overlooked laundering phenomenon – cleansing operations of illegally sourced art that can be defined as art laundering – is stressed. In assessing whether introducing an anti-money laundering and counterterrorism financing regime into the art market can be considered a proportionate intervention, the burden on stakeholders due to compliance obligations, on the one hand, and the need to protect values endangered by laundering and trafficking involving art, on the other is evaluated. In light of the incidence of art crimes, in particular of art laundering, and of the potential for the new rules to effectively prevent these activities due to a relatively low risk of displacement, the conclusion reached is that the interests of supra-individual values, including that of cultural heritage, outweigh the economic concerns of art market actors.