New anti-money laundering legislation applies to Art Market

A new regulation has come into effect from January 10th. A fifth anti-money laundering Directive which applies to art market practices across the EU. The '5AMLD' follows a banking protocol also used across international auction houses.

 

The new legislation is not currently affected by Brexit.

 

The new legislation means that all galleries in the UK and EU must follow certain mandatory checks to verify client identity when selling any artwork over or the equivalent value of 10,000 EUR.

 

For individuals, both new and existing, the gallery will need to see an original or legally certified copy of a photographic ID, such as a passport or drivers licence, we will also need a recent proof of a permanent residential address.

 

For companies, the gallery will need proof of company details including, evidence of incorporation, directors and ultimate beneficial owners.

 

Any future payments must now be from the bank account held in the name of the client or the entity as titled on the Invoice. If a third party wishes to make the purchase on behalf of someone or as a gift, we will not be able to receive a payment until we are satisfied with the identity of the payee in line with the new legal requirements.

 

If you have any further questions please email: info@informality.co

 

January 10, 2020