London, art galleries have warned clients about new anti-money laundering legislation, which requires clients (*new as well as existing) to provide identification while purchasing. The new law, effective from 10 January 2020, would cover the details related to the purchase.
In the past few years, high-end arts and antiques have attracted the attention of money launders. The UK government is taking all the reasonable steps to mitigate the risks of money laundering occurring in the course of business and expects art galleries to do the same by identifying and screening checks on all clients purchasing from them.
In order to make a purchase, individuals will require to submit a copy of a valid photo identity document (* passport, driving license or national ID card), whereas, companies will require to provide details including evidence of incorporation, directors and the ultimate beneficial owners. For agent/advisor, it will be required to provide the identity of ultimate buyer to the agent.
As part of obligations, galleries will receive payment from a bank account in the name of a person or entity on the invoice. In the case of a third party, prior authorization will be required. Under the new law, galleries will have to reserve the right to refuse third payments if the information provided doesn’t meet new legal requirements.
It is believed that similar legislation is expected to be introduced in the US in the near future.