The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    216.73.216.166

    A Brief Insight into AML Regulations for the Art Market

    aml regulations for art market

    While the banking sector faces increased scrutiny to prevent illicit financial flows, a significant amount of dirty money is still being laundered through the art market. Although financial regulators have strengthened anti-money laundering (AML) regulations in various countries, transactions in art and antiques remain an area of concern.

    The US and UK are the two biggest markets for art and antiques where oligarchs and corrupt politicians spend their dirty money in order to gain legitimate funds. Considering the high volume of illicit activity through art purchases, financial regulators have repeatedly urged art dealers throughout the world to incorporate AML screening measures.

    The Art Market and Money Laundering

    Even though the majority of art purchases involve legitimate funds, numerous cases have shown that Russian billionaires and drug lords use the art market to obscure the origins of their illegally-obtained funds. Following such a purchase, the art or antique item is stored in hidden warehouses for a particular time and then put up for sale. 

    Moreover, art can also be pledged as collateral in order to get loans in the form of legitimate cash. The Covid-19 outbreak gave rise to online art auctions that have had a serious effect on the traditional art market. According to a report, the global online-only auction sales, including the three biggest auction houses, Sotheby’s, Christie’s, and Phillips, crossed the $1 billion mark for the first time in the last year.

    Online art purchases contribute to a large number of transactions that are completely unmonitored and also involve a number of intermediaries like advisors, art dealers, and auction houses. Considering these visible issues and loopholes in art dealings, financial regulators have come up with amendments to AML regulations that apply to the art market as well as antiquities dealers.

    Updates to US Regulations for the Art Industry

    In the US, financial institutions and other businesses need to comply with the regulations provided by the Anti-Money Laundering Act of 2020 (AMLA 2020). The AMLA updated the definition of “financial institution” to include “a person engaged in the trade of antiquities, including an advisor, consultant, or any other person who engages as a business in the solicitation or the sale of antiquities.” According to the new definition, art and antiquities dealers, as well as those involved in art deals fall under the scope of the AMLA.

    The AMLA obliges antiquities dealers to implement sufficient methods for anti-money laundering/combating the financing of terrorism (AML/CFT). Corrupt entities and oligarchs that intend to launder money are provided with a certain level of anonymity because of the system involving intermediaries like agents and brokers. With updates in regulations, it is clear that AML compliance will be ensured in the US art market sooner or later. 

    The US Senate authorised the Senate Permanent Subcommittee on Investigations in July 2020 to identify the reasons why the US policies of AML sanctions are undermined in the art industry. The consequent efforts showed that the art market is the biggest unregulated market in the US. A study also revealed that there is a lack of AML measures in the major auction houses in the country. Those that do implement AML screening are doing it voluntarily and normally consider the client’s representative as the person to make the transaction. In most cases, the auction house does not require proof of identity from individuals or the UBO (ultimate beneficial owner) information from businesses. The Senate investigation determines that art dealers do not have AML controls as the current regulations do not oblige them to do so.

    aml regulations for art market Infographic

    Canada’s Regulations for the Art Market

    The Financial Action Task Force (FATF) issued its Mutual Evaluation Report for Canada in 2016, which highlighted that art dealers and auction houses are highly vulnerable to financial crimes like money laundering and terrorist financing. Arts and antiquities, as well as luxury cars and yachts, are the most commonly used medium by Russian oligarchs amid sanctions following the Russia-Ukraine conflict. Furthermore, in 2018, the Standing Committee on Finance of Canada’s House of Commons released a report named ‘Confronting Money Laundering and Terrorist Financing: Moving Canada Forward’. The report comprised 32 recommendations related to updates and amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

    The report also states that precious metals and stones dealers were obliged to follow AML regulations in Canada (when the report was published). However, this was not the case for high-value art or luxury goods dealers. The report also listed a set of measures that would ideally contribute to a better AML/CFT regime in the country. It was suggested in the report that “Federal, provincial, and territorial governments should collaborate to close the loophole regarding the transaction of sales between parties who are not subject to PCMLTFA reporting requirements, which creates vulnerability for money laundering to occur.”

    The EU’s 5th AMLD

    The EU’s Fifth AMLD (Anti-Money Laundering Directive) broadens the scope of AML regulations to include art traders, intermediaries in art dealings, art handlers at freeports, and those who make transactions through freeports when values exceed EUR 10,000. Moreover, the 5th AMLD also includes transactions in other high-value items like arms, precious metals, antiquities, and artifacts. As smaller transactions that are linked to each other can collectively go beyond the threshold that is set by AML requirements, all payments are now subject to transaction monitoring. Enhanced due diligence is required in high-risk cases and involves requiring a photo as well as ID document from individuals and the sources of money from businesses.

    The Fifth AMLD also obliges art dealers and the relevant entities to disclose the ultimate beneficial ownership information of businesses, trusts, and foundations. The directive defines the term “obliged entity” as credit and financial institutions and regulated service providers operating outside the financial sector. It also lists freeports under “obliged entities”. The regulation allows EU member states to implement the rules obliging businesses that deal in countries with inadequate AML/CFT measures to perform enhanced due diligence and transaction monitoring on a regular basis.

    What Shufti Offers

    Enhanced due diligence (EDD) and Anti-Money Laundering (AML) screening are the keys to combating money laundering in the art market. Art dealers must adopt the risk-based approach and employ AML checks to ensure that illegal money has not been used for purchasing artwork. Moreover, ongoing AML and transaction monitoring can assist organisations in maintaining an updated risk profile of every buyer making compliance with the regulations easier. AML screening checks the background of buyers against several sanction lists and PEPs. 

    Shufti’s AML Screening solution allows your art dealership to validate every buyer and ensure that dirty money is not used for transactions. Furthermore, our ongoing transaction monitoring allows businesses to keep a check on every transaction being conducted by the customers. 

    Want to learn more about AML Screening for the Art Industry?

    Related Posts

    Blog

    The US Corporate Transparency Act – What’s New? [December 2022]

    Generally, small to medium businesses in the US continue operating without disclosing the benefic...

    The US Corporate Transparency Act – What’s New? [December 2022] Explore More

    Blog

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes

    With revolutionary technologies and growing digitization, the digital version of artworks known a...

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes Explore More

    Blog

    Building Better Customer Experiences from the Inside Out

    ”I don’t really think that it’s possible to deliver an excellent customer experience without havi...

    Building Better Customer Experiences from the Inside Out Explore More

    Blog

    Building an Effective Customer Due Diligence (CDD) System with Shufti

    There are various factors that businesses have to consider while implementing measures to gather ...

    Building an Effective Customer Due Diligence (CDD) System with Shufti Explore More

    Blog

    HKMA’s Risk Assessment Guidelines for AML/CFT Compliance in the Banking Sector

    In the past few years, global regulatory authorities have been laying new grounds for Anti-Money ...

    HKMA’s Risk Assessment Guidelines for AML/CFT Compliance in the Banking Sector Explore More

    Blog

    New Money Laundering Patterns to Look Out for in 2022 – Do Social Media Platforms Need AML Screening?

    With digitization, the use of the internet and easy access to smart gadgets has increased the num...

    New Money Laundering Patterns to Look Out for in 2022 – Do Social Media Platforms Need AML Screening? Explore More

    Blog

    Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate

    Shufti, the global identity verification service provider, started from humble beginnings wit...

    Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate Explore More

    Blog

    10 Reasons Why Businesses Should Choose Shufti

    Started in 2017, Shufti Ltd. has attained a lot of success. Within three years, we have onboa...

    10 Reasons Why Businesses Should Choose Shufti Explore More

    Blog

    High-Risk Customers in Banking and How EDD Can Help Identify Them

    In this age of digitisation, banks and other financial institutions face a high risk of money lau...

    High-Risk Customers in Banking and How EDD Can Help Identify Them Explore More

    Blog

    Age-Verification Evasion in 2025: How Minors Outsmart Weak Age Gates — and How to Fight Back

    Introduction Minors are no longer deterred by simple “What’s your date of birth?” pop-ups. Armed ...

    Age-Verification Evasion in 2025: How Minors Outsmart Weak Age Gates — and How to Fight Back Explore More

    Blog

    Addressing AML Compliance Challenges with a Risk-based Approach (2023)

    Regardless of how big or small a company is, the after-effects of Covid-19 and the global financi...

    Addressing AML Compliance Challenges with a Risk-based Approach (2023) Explore More

    Blog, Financial Crime / AML

    3 Stages of money laundering – How AML screening guards your business

    The United Nations Office on Drugs and Crime found that 2 to 5% of global GDP is laundered every ...

    3 Stages of money laundering – How AML screening guards your business Explore More

    Blog

    Elevating Document Verification with OCR in 2024 | Data Extraction in Real-Time

    The Optical Character Recognition (OCR) market was valued at US$15 billion in 2019 and is expecte...

    Elevating Document Verification with OCR in 2024 | Data Extraction in Real-Time Explore More

    Blog

    KYC & AML – A Top Priority for Soaring Buy Now, Pay Later Services

    In today’s credit-thirsty world, Buy Now, Pay Later has emerged as a clear winner, forever changi...

    KYC & AML – A Top Priority for Soaring Buy Now, Pay Later Services Explore More

    Blog

    Real Estate Industry Crimes and Strict AML Regulations – How Shufti Can Help

    The real estate industry has long provided a safe way for fraudsters to secretly launder or inves...

    Real Estate Industry Crimes and Strict AML Regulations – How Shufti Can Help Explore More

    Blog

    Top 6 trends in Anti-Money Laundering for 2020

    To enhance the scope of AML compliance, new regulations were brought into force throughout last y...

    Top 6 trends in Anti-Money Laundering for 2020 Explore More

    Blog

    COVID-19 and Travel & Tourism Industry – What Opportunities Await Post-Pandemic?

    The world is completely exhausted with the COVID-19 pandemic. The corporate sector has lost enoug...

    COVID-19 and Travel & Tourism Industry – What Opportunities Await Post-Pandemic? Explore More

    Blog

    ID Document Fraud | Is Your Business Prepared to Fight the War Against Fraud in 2024?

     In today’s data-driven, digitized world, various business processes have been automated...

    ID Document Fraud | Is Your Business Prepared to Fight the War Against Fraud in 2024? Explore More

    Blog

    Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate

    Shufti, the global identity verification service provider, started from humble beginnings wit...

    Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate Explore More

    Blog

    KYC Checklist: A Comprehensive Guide for Businesses and Financial Institutions

    In the ever-evolving landscape of finance, having a solid defence against financial crime is cruc...

    KYC Checklist: A Comprehensive Guide for Businesses and Financial Institutions Explore More

    Blog

    The ‘What’ and ‘How’ of Address Verification Service

    The rising number of chargebacks and other fraudulent activities has led organisations to develop...

    The ‘What’ and ‘How’ of Address Verification Service Explore More

    Blog

    A Brief Overview of 2021 AML Trends

    Over the last decade, regulatory scrutiny on Anti-Money Laundering (AML) compliance has remained ...

    A Brief Overview of 2021 AML Trends Explore More

    Blog

    Digital Identity checks for secure and swift customer onboarding

    The digital transformation of businesses continues apace, driven in part by regulations that mand...

    Digital Identity checks for secure and swift customer onboarding Explore More

    Blog

    5 Predictions on the Future of Digital KYC and eKYC

    It’s 2023. Welcome to the day and age of digital KYC verification. From multiple copies of ID car...

    5 Predictions on the Future of Digital KYC and eKYC Explore More

    Blog

    Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services

    The global art industry is embracing digitization. However, the technological advancements and a ...

    Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services Explore More

    Blog

    Securing The Digital Landscape with Electronic Identity Verification Services

    With a surge in identity document forgery, the likelihood of onboarding a criminal has grown subs...

    Securing The Digital Landscape with Electronic Identity Verification Services Explore More

    Blog

    First-party, Second-party and Third-party Frauds – How to Stop them?

    Most businesses don’t lose customers because of poor services but due to weak security measures. ...

    First-party, Second-party and Third-party Frauds – How to Stop them? Explore More

    Blog

    Enhance Time Efficiency with Shufti’s KYC Solution

    The Past Quick and secure e-KYC verification might not have been of importance in the days prior ...

    Enhance Time Efficiency with Shufti’s KYC Solution Explore More

    Blog

    Perpetual KYC: The Future of Due Diligence in the Financial Industry

    Digital transformation is paving the way for quick growth in the compliance sphere. However, regu...

    Perpetual KYC: The Future of Due Diligence in the Financial Industry Explore More

    Blog

    Online Privacy, Security & Inclusivity in a Digital World: Congress Hearing 2021

    On 16 July 2021, the US Financial Services Task Force on Artificial Intelligence held a virtual h...

    Online Privacy, Security & Inclusivity in a Digital World: Congress Hearing 2021 Explore More

    Blog

    Identity Verification – Combating Fraud in the Telecommunication Sector

    Developing technology, rapid growth in digitization, and increased use of digital transactions ha...

    Identity Verification – Combating Fraud in the Telecommunication Sector Explore More

    Blog

    Understanding Facial Identification: Face Verification vs. Face Recognition

    Many terms in the biometrics field are used interchangeably, particularly regarding facial verifi...

    Understanding Facial Identification: Face Verification vs. Face Recognition Explore More

    Blog

    6 in 10 Leaders Aren’t Ready for Deepfake Fraud Threats

    6 in 10 Leaders Aren’t Ready for Deepfake Fraud Threats Explore More

    Blog

    Identity Fraud on Social Media Platforms – How Shufti Keeps Fraudsters at Bay

    With almost 70% of the world’s population interacting through social media platforms, businesses ...

    Identity Fraud on Social Media Platforms – How Shufti Keeps Fraudsters at Bay Explore More

    Blog

    Blockchain Technology and KYC for Crypto Exchanges – How Shufti Can Help

    KYC compliance is the backbone of the Anti-Money Laundering (AML) measures implemented by any fin...

    Blockchain Technology and KYC for Crypto Exchanges – How Shufti Can Help Explore More

    Blog

    Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti

    With emerging technologies in the financial industry, cryptocurrency is picking up the pace, and ...

    Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti Explore More

    Blog

    Biometric Authentication – A Solution Against Fraud Detection

    Biometrics technology is the way forward for identity verification services as they allow for qui...

    Biometric Authentication – A Solution Against Fraud Detection Explore More

    Blog

    The Significance of Age Verification in the Digital Space

    With the innovation of technology, digital services among younger audiences are becoming increasi...

    The Significance of Age Verification in the Digital Space Explore More

    Blog

    Leveraging Age Assurance for Data Privacy and User Protection

    Online age verification has gained great attention in recent years since many minors have been se...

    Leveraging Age Assurance for Data Privacy and User Protection Explore More

    Blog

    4 Ways How Technology Can Simplify KYC and AML Workflow Management

    While the terms AML and KYC are used interchangeably, there is a huge difference between the two....

    4 Ways How Technology Can Simplify KYC and AML Workflow Management Explore More

    Blog

    Identity verification solutions to fight against faces of fraud

    In this digital world, billions of smart devices are circulating, connecting and communicating wi...

    Identity verification solutions to fight against faces of fraud Explore More

    Blog

    Online Age Verification Service: Children’s Digital Privacy amid COVID-19

    The meteoric rise in the adoption of digital technology has influenced every phase of modern huma...

    Online Age Verification Service: Children’s Digital Privacy amid COVID-19 Explore More

    Blog

    Top 10 Questions about AML Compliance Answered by the CTO of Shufti

    The regulatory landscape is changing with time and a number of questions are arising. AML complia...

    Top 10 Questions about AML Compliance Answered by the CTO of Shufti Explore More

    Blog

    E-Signature Verification | Why Businesses Should Consider Adopting It

    Physical paperwork is a thing of the past now. It is a time and labour-intensive task that requir...

    E-Signature Verification | Why Businesses Should Consider Adopting It Explore More

    Blog

    How Online ID Verification Supports Age-restricted Sellers?

    The online stores selling age-restricted products like gaming services, medicine or drugs are in ...

    How Online ID Verification Supports Age-restricted Sellers? Explore More

    Blog

    How Can 2-Factor Authentication Protect Customers Against Fraud?

    Need for Customer Authentication Mechanisms Since the existence of humanity, new innovations and ...

    How Can 2-Factor Authentication Protect Customers Against Fraud? Explore More

    Blog

    The Most Frequently Asked Questions About Perpetual KYC

    Maintaining the accuracy of customer data presents a considerable challenge. Automating it has tr...

    The Most Frequently Asked Questions About Perpetual KYC Explore More

    Blog

    5 AI-Powered Products to Boost Digital Experiences Post Covid

    If there’s one thing financial institutions understood within the first year of global shutdowns ...

    5 AI-Powered Products to Boost Digital Experiences Post Covid Explore More

    Blog

    From Crypto to Fiat Currency – Secure Exchanges with Transaction Monitoring Solutions

    Transaction processes today are launching innovative possibilities for users across the economic ...

    From Crypto to Fiat Currency – Secure Exchanges with Transaction Monitoring Solutions Explore More

    Blog

    Art Market in the Frame of Money Laundering

    The highly volatile finance and crypto sector is not appealing for many investors, so they turn t...

    Art Market in the Frame of Money Laundering Explore More

    Blog

    AML Compliance – Mitigating Financial Crime Risks in the Payments Industry

    After the Covid-19 pandemic gave rise to the digital payments trend, the world has seen rapid gro...

    AML Compliance – Mitigating Financial Crime Risks in the Payments Industry Explore More

    Blog, Identity & KYC

    Know Your Customer with Video Proof

    Know your Customer (KYC) verification with Shufti, which is becoming a recognised name in the...

    Know Your Customer with Video Proof Explore More

    Blog

    A Comprehensive Guide to Understanding Ultimate Beneficial Owners (UBOs)

    Identifying UBOs and their control over a business is crucial for financial firms to meet regulat...

    A Comprehensive Guide to Understanding Ultimate Beneficial Owners (UBOs) Explore More

    Blog

    Age-Verification Evasion in 2025: How Minors Outsmart Weak Age Gates — and How to Fight Back

    Introduction Minors are no longer deterred by simple “What’s your date of birth?” pop-ups. Armed ...

    Age-Verification Evasion in 2025: How Minors Outsmart Weak Age Gates — and How to Fight Back Explore More

    Blog

    MiCA Goes Global: How to Stay Ahead with a Future-Ready Compliance Strategy

    What Is MiCA? At the end of 2024 and just weeks after the crypto market reached an all time high ...

    MiCA Goes Global: How to Stay Ahead with a Future-Ready Compliance Strategy Explore More

    Blog

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention

    Since governments worldwide are increasing the pressure to regulate, compliance has become a key ...

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention Explore More

    Blog, Online Marketplace

    How Identity Verification Solutions Can Make Summer Travel a Breeze and Generate Revenue?

    The travel industry is a unique business category servicing clients from various destinations and...

    How Identity Verification Solutions Can Make Summer Travel a Breeze and Generate Revenue? Explore More

    Blog, Identity & KYC

    4 Ways in which KYC for STO can Revolutionise the Crypto World

    The year 2019 is expected to see a significant rise in STOs and have been called the future of bl...

    4 Ways in which KYC for STO can Revolutionise the Crypto World Explore More

    Blog

    Protect Your Business Against Identity Theft with Face ID Check

    The efficacy of biometric authentication becomes questionable in the face of facial ID checks. It...

    Protect Your Business Against Identity Theft with Face ID Check Explore More

    Blog

    6AMLD of EU – A detailed insight

    European union’s another anti-money laundering directive is in the pipeline. And this time the un...

    6AMLD of EU – A detailed insight Explore More

    Blog

    5 Ways how IDV Provides an Active Defense Against Fincrime

    Identity theft, account takeovers, and data breaches… The world has seen enough cybercrime ...

    5 Ways how IDV Provides an Active Defense Against Fincrime Explore More

    Blog

    eKYC: Transforming ID Verification for Enhanced Security and A Seamless Customer Experience

    Governments have mandated various businesses, including financial institutions, to thoroughly und...

    eKYC: Transforming ID Verification for Enhanced Security and A Seamless Customer Experience Explore More

    Blog

    How biometrics in visa process reduce travel difficulties

    Biometric technology is enhancing the travel industry in many ways.  Factors that drive the secur...

    How biometrics in visa process reduce travel difficulties Explore More

    Blog

    e-IDV | Electronic Verification Checks For Ultimate Fraud Prevention

    The first paper-based photo identity document was in May 1876, developed by William Notman for th...

    e-IDV | Electronic Verification Checks For Ultimate Fraud Prevention Explore More

    Blog

    On-Premises vs Cloud Services – Two Sides of the Same Coin

    With the advent of technology, industries are streamlining all their processes and ensuring highe...

    On-Premises vs Cloud Services – Two Sides of the Same Coin Explore More

    Blog

    The Shufti Difference: Speed, Security, and Fairness Without Compromise

    With over 100 fraud and identity companies operating worldwide, you might assume that something l...

    The Shufti Difference: Speed, Security, and Fairness Without Compromise Explore More

    Blog

    Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals

    The nature of digital operations is changing, and users are now preferring to use remote services...

    Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals Explore More

    Blog

    A Comprehensive Guide to Choosing a Perfect e-KYC Solution for Businesses

    Most of our processes, including financial and business dealings, have now shifted to online plat...

    A Comprehensive Guide to Choosing a Perfect e-KYC Solution for Businesses Explore More

    Blog

    10 Ways to Eliminate Business Fraud with Robotic Process Automation (RPA)

    One of the prime concerns of businesses today is detecting and mitigating the risk of fraud. This...

    10 Ways to Eliminate Business Fraud with Robotic Process Automation (RPA) Explore More

    Blog

    Understanding False Positives in AML Transaction Monitoring

    Financial institutions such as banks, neo-banks, insurance companies, investment companies, finte...

    Understanding False Positives in AML Transaction Monitoring Explore More

    Blog

    Worldwide Language Coverage from Shufti helps you go Global

    Language serves the purpose of communication among people of a certain locality, nation or in cas...

    Worldwide Language Coverage from Shufti helps you go Global Explore More

    Blog

    Fighting Prevailing Crimes in Gaming Industry with Shufti’s Anti-Money Laundering Screening Solution

    Modern gaming is the most recent evolution of this industry that has become the attraction of glo...

    Fighting Prevailing Crimes in Gaming Industry with Shufti’s Anti-Money Laundering Screening Solution Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started