Most frequent questions answered. Please contact us to find out more about the service.
What is this change affecting the art world?
EU has updated the Money Laundering Directive and included Art Dealers and Galleries within the scope of the regulation.
MLD can be found here http://data.consilium.europa.eu/doc/document/PE-72-2017-INIT/en/pdf
Who is it for?
As per Amendments to Directive (EU) 2015/849
(1) point (3) of Article 2(1) is amended as follows:
(i) persons trading or acting as intermediaries in the trade of works of art, including when this is carried out by art galleries and auction houses, where the value of the transaction or a series of linked transactions amounts to EUR 10 000 or more;
(j) persons storing, trading or acting as intermediaries in the trade of works of art when this is carried out by free ports, where the value of the transaction or a series of linked transactions amounts to EUR 10 000 or more.”;
Is it a must?
Yes, you have to comply if you are dealing in the art work of EUR 10,000 or more
Do I need to hire new staff?
Depends on the size of your business. If you are a gallery with less than 20 staff you may not need to hire anyone extra. Call us to discuss.
When do I need to comply by?
You have to start putting the compliance framework in place right now, and be fully compliant by January 2021 is the date MLD 5 comes into force.
What policies, controls and procedures do I need to have in place?
The policies, controls and procedures shall include:
(a) the development of internal policies, controls and procedures, including model risk management practices, customer due diligence, reporting, record-keeping, internal control, compliance management including, where appropriate with regard to the size and nature of the business, the appointment of a compliance officer at management level, and employee screening;
(b) where appropriate with regard to the size and nature of the business, an independent audit function to test the internal policies, controls and procedures referred to in point (a).