FinCEN: New Regulations for Dealers in Antiquities and Arts Market
October 18, 2021-
Sullivan & Worcester highlight proposed regulations of the antiques and art markets in their latest article about the Treasury Department’s Financial Crimes Enforcement Network notice of proposed regulations from September 24th. The notice highlights amendments to the Bank Secrecy Act and the crackdown on money laundering in the antiquities market, pursuant to the Anti-Money Laundering Act (AMLA) of 2020.
Since it passed some nine months ago, FinCEN has remained largely silent on potential draft regulations for the AMLA, passed as part of the National Defense Authorization Act. Now, with only three months until the 2021 deadline for a draft, they are ready to tackle some substantive questions in consideration of those regulations, mainly, how ancient is ancient enough? So far, neither the AMLA, not FinCEN’s notice provided a definition for “Trade in Antiquities.”
In addition to their consideration of how the critical term is defined, they are seeking input on a number of other things, including:
- Application of the Bank Secrecy Act to the trade in antiquities
- Potential for money laundering, through terrorist financing and other illicit activity
- Roles, responsibilities, and activities of persons engaged in trade in antiques
- Information typically exchanged
- Breakdown of certain kinds of transactions
- Interaction (including payment from overseas actors)
- Which participants are best positioned to guard against money laundering?
- What regulations, including thresholds and possible exemptions, should FinCEN consider?
Regulators are scrambling to meet their deadline by the end of the year, and it will prove to be an interesting few months as they consider what regulations to impose on the art and antiquities market.
To read the full article from Sullivan & Worcester by Nicolas O’Donnell, click here.
To read the Treasury Department’s Financial Crimes Enforcement Network’s notice of proposed regulations, click here.
To read how AC-Counsel can assist you with matters of Art Law, click here.
