Protecting the art market

The $50 billion global art market is one of the fastest-growing in the world, but the FBI estimates that art crime - including fraud, theft and trafficking - creates annual losses running into the billions. In the UK, the HM Treasury and the Home Office consider the art market to be 'high-risk', primarily due to a lack of transparency within the industry. 

A 2020 report by the U.S. Senate's Permanent Subcomittee on Investigations stated that: 'Secrecy, anonymity and a lack of regulation create an environment ripe of laundering money and evading sanctions.' As art - including fine art, photographs and prints - is considered an asset that is less affected by a volatile economy, its value can often increase following purchase, making it susceptible to fraudulent practices. 

“Art has great value and is resaleable. For that reason, it has become a target for those wishing to launder money," explains Simon MacGovern, CEO of Washington Green Fine Art. “We endeavour to take the necessary steps to prevent fraudulent transactions, and background checks ensure that our art is being sold to genuine collectors. For us, it is not about the number of artworks we sell; our clients’ experience is our primary concern, and this is at the forefront of everything we do.”  

In the UK, any suspicious activity is reported to the National Crime Agency (NCA), and businesses who don't comply are at risk of sanctions and prosecution. Non-UK customers - including those from the U.S and Europe - are subject to the same regulations when transacting in the UK. It is expected that the U.S will soon announce recommendations for its own AML regulations to include fine art, helping to keep the art market authentic and ethical.

Our company values 

Our KYC and AML processes operate beyond the minimum standards set by law. “Castle Fine Art is a company that places a very high value on integrity,” adds Simon. “Complying with legal requirements shows our clients that they are dealing with a business that takes customer safety seriously. This reflects our high standards as a business across the board.”

Exceptions

The following countries have been identified as high-risk by the Financial Action Task Force (FATF), HM Treasury and the European Commission, and KYC procedures will be carried out regardless of purchase value: Afghanistan, The Bahamas, Barbados, Belarus, Botswana, Cambodia, Democratic People's Republic of Korea (DPRK), Ghana, Iran, Iraq, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Pakistan, Panama, Russia, Syria, Trinidad and Tobago, Uganda, Vanuatu, Yemen, Zimbabwe.