16 THE ARIZONA BANKER Edvard Munch “The Scream” | Photo stock.adobe.com Recent Study Outlines HowArt is Used for Money Laundering Congress attempted to address loopholes that might promote antiquities and art money laundering by passing the Anti-Money Laundering Act of 2020 (AMLA). In a proposed rule issued by FinCEN in September 2021, antiquities dealers would be brought under the same AML regulatory framework previously applied to U.S. financial institutions under the Bank Secrecy Act (BSA). Industry leaders expect the final rule to be published in the near future. AMLA also mandated that the Treasury Department study the high-end art industry to determine the degree of money laundering and terror financing risk associated with art dealers. This study determined that money laundering does occur through the sale and purchase of high-end art. It noted the following three ways criminals are using art to launder money: 1. Accepting art as payment to integrate illicitly generated or acquired funds into the financial system; 2. Hiding or parking the proceeds of illegal activities via art purchases; and 3. Using art purchased with illicit proceeds as collateral for other transactions to disguise the source of funds.
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