Fincham on Art, Antiquities, and Money Laundering

Derek Fincham (South Texas College of Law Houston) has posted Art, Antiquities, and Money Laundering (Kentucky Law Journal, Vol. 111, 2023) on SSRN. Here is the abstract:

 

Criminals often seek to disguise their illegal acts by generating complex layers to disguise. And the trade in art and antiquities allows for that complexity as a standard part of the market. In fact, the art world is perhaps even more susceptible to money laundering than other markets, in that not only has regulation been limited, but also because of traditional art market practices. An explosion in the value of art combined with traditionally lax regulation and safeguards leaves the art market open to potential money laundering. But not for long. Money laundering in the art world seems more common today than ever before. Yet a persistent lack of data hampers effective regulation. Efforts in Europe, the United Kingdom, and the United States are likely bringing a new regulatory tool to bear by imposing record-keeping and reporting requirements on some select participants in the art and antiquities markets. This regulation imposes new costs on sectors of these markets, but considerable doubts remain about how well they will accomplish their stated policy objectives.