Art market participants now have until June 10th 2021 to become fully compliant to the regulations.
The UK government is delaying the deadline for galleries, auction houses, and other art market participants to register their businesses under its new anti-money laundering regulations.
Art businesses and other firms that fall under the new requirements now have an additional five months to register with the government, which will come as welcome news to businesses that have been struggling to become compliant with the regulations amid the additional hurdles presented by the pandemic.
The new rules, the European Union’s fifth anti-money laundering directive, somewhat blindsided the art market when they came into force in January. They require art dealers to register with the government, officially verify client identities, and report any suspicious transactions or they will face penalties including jail time.
The regulations were brought in as part of a widespread effort in both Europe and the US to crack down on money laundering and terrorist financing by increasing transparency across many industries including the art market.
Dealers are expected to have been making efforts to comply with the new rules since they were announced, but they had a grace period of one year to officially register with HMRC, the UK’s tax administration bureau. Now, that original deadline of 10th January 2021, has been extended until 10th June 2021.
Auction houses and dealers will likely be relieved, some have been scrambling to make sense of the stipulations and to set up appropriate internal systems and train staff in addition to managing other complications posed by the pandemic.
The proposal to change the deadline was tucked away in a draft statutory instrument updating details of the new law after emergency measures to deal with the pandemic and lockdown meant diverting attention away from preparations for AML enforcement.
Anti-Money Laundering Services for AMPs
At AML and Compliance we work with Art and Antiques Dealers to secure their authorisation or those who already have it to ensure they have effective AML policies and procedures in place to meet their regulatory requirements on an ongoing basis.
Details of the services we provide are contained in our service page which you can review to obtain detailed information on how we work with dealers in the art and antiques sector.