Protection of cultural objects against money laundering

Abstract

Recent high-level scandals, such as the Panama Papers and FinCEN Files, have spotlighted how cultural objects are implicated in concerning financial transactions, and raised concerns about the use of artworks to conceal or disguise the illicit origin of assets. This chapter builds on contributions of rational choice theory to analyse how anti-money laundering regulation in the art market can strengthen surveillance and ultimately disincentivise the use of cultural objects for money laundering purposes. Criminological literature on rational choice theory and crime control in the art market provides a conceptual framework to analyse the case study of the anti-money laundering regulation on the Brazilian art market. The main contribution of this regulation was the engagement of a federal agency responsible for protecting national cultural heritage, whose proximity to art dealers has the potential to mediate tensions arising from an increased regulation of the art market. The regulatory framework in Brazil shows greater awareness and surveillance of money laundering events in the art market to prevent profit-driven criminals from using cultural objects to launder money. The capacity of art and anti-money laundering experts to engage with each other is paramount to create effective regulation across contexts, and to balance which goals and interests are foregrounded.