Art Dealers Urged to Intensify Regulatory Actions Against Money Launderers

The Department of Justice is establishing new rules to combat financial crimes via the art market and has warned Irish art dealers against money laundering.

The development is being made as the Department of Justice takes steps to intensify regulatory inspections of art traders, galleries, and intermediaries. Many of these dealers were previously not subject to official monitoring.

The Minister for Justice Helen McEntee said, “I am sure the businesses subject to this new inspection regime will be in compliance with our new regulations, but we must always be alive to potential threats and avenues which could be used for money laundering and the financing of terrorism.”

New rules are being introduced to protect art dealerships against organized crime groups and drug cartels that use high-value art purchases as a way to carry out money laundering. The rules are also aimed at combating cases of terrorist financing through the art market. 

The department has created a database for monitoring compliance, where 234 art-trading businesses, dealers, and intermediaries are included. During the last year, officials from the Department of Justice inspected 10 such businesses. A further 20 art dealerships are to be investigated this year. 

“I have no doubt that all these businesses will work with my department to ensure we have a robust supervisory regime in place”, added McEntee.

Furthermore, the initiative is an international effort to narrow down the opportunities for criminals and terror groups to obscure the origins of their illicit funds through the art market. Additionally, the illegally obtained funds can now be prevented from becoming part of the global economy via the purchase or resale of art. 

For quite some time, law enforcement agencies around the world have been raising concerns regarding the insufficient regulations in the art and antiquities sector, along with the anonymity and secrecy provided in art dealings. 

Suggested read: FinCEN Launches Regulatory Process For AML Regulation on Antiquities