Changes to Art Market Regulation in the EU
On 10 January 2020 a new EU legislation that took effect, making the art market across Europe a regulated sector for anti-money laundering purposes. This legislation has been adopted by the UK and will not be affected by Brexit; the United States is expected to adopt similar legislation in due course. It requires us to verify the identity of our clients, both new and existing (including those based outside the EU), when you purchase artworks. The new legislation applies to all transactions of €10,000 or above. The checks that we are required to carry out and the records that we must keep are similar to the “Know Your Client” processes that banks, law firms and major auction houses already follow.
Enclosed is a summary of this legislation:
– If a work is being invoiced to an individual, we will need to see an original or certified copy of the buyer’s passport (or other similar photo identification), and we will need details of the buyer’s permanent residential address.
– If the work is being invoiced to a company, we will need copies of the company’s incorporation documents and details of its Directors and ultimate beneficial owners.
– We will only be able to accept funds from the individual named on the invoice, unless payment by a third party has been previously agreed, and we confirm that we have satisfactorily carried out the necessary due diligence on that third party.
The new legislation may initially impact the speed of some transactions, and we therefore ask for your understanding if it takes us a little longer than usual to process sales. Please be assured that all personal data will be held and processed securely in accordance with data protection legislation.
If you have any questions, please feel free to contact [email protected].