Speakers Mathilde Heaton from The Responsible Art Market Initiative and Adrian Parkhouse of law firm Farrer & Co detailed the requirements of the new law at the latest Art Business Conference.
The Fifth Anti-Money Laundering Directive, due to come into force in 2019, is designed to make the transfer of assets more transparent.
The changes include the need to verify identities for transactions of €10,000 or more, irrespective of the payment method. This covers any series of lower-value ‘linked transactions’ that can add up to €10,000 or more. Previously in the UK, such checks were necessary only for cash transactions of €10,000 or more.
The trade must record transactions, conduct due diligence and be aware of the Know Your Customer requirements.