New AML regulations, The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 came into effect on the 10th January 2020 to combat the global issue of money laundering and terrorist financing.
Under this update, & for the first-time “art market participants,” will be required to comply with anti-money laundering legislation.
What does this mean practically? It means you will be required to register with an AML supervisory board, conduct a risk assessment, appoint a MLRO, document your aml policies & procedures including your SAR internal processes & conduct staff training.
A good place to start in understanding your general AML obligations is Veriphy’s Pillars of AML Compliance Guide.
Art traders conducting business within the UK are now classed as ‘regulated’ for the purposes of AML compliance. This new label requires “art market participants,” to conduct due diligence when partaking in transactions with values over 10,000 Euros (around £8,500).
As regulated entities, art market participants must register with a supervisory body for the purposes of AML supervision. For the art sector, the relevant body is HMRC. The regulations state that you must register within the next 12 months of the regulations taking effect.
Under new AML regulations, you will be required to adopt a ‘risk-based’ approach. This means you must identify, assess and understand the risks to which your trading is exposed to potential money laundering and take appropriate AML measures to commensurate to those risks to mitigate them effectively.
NOTE: The new AML regulations state, as an obliged entity, that you will have to retain your CDD records for up to 5 years.
Other requirements include carrying out a risk assessment, the implementation of documented AML policies and internal procedures, appointing an MLRO & conducing and keeping record of the AML training of your staff.
The Responsible Art Market (RAM) has produced an excellent toolkit explaining art transaction due diligence which can be found here.
Once registered with your supervisory board, we can help create the foundation of your internal AML policies and procedures; specifically, your AML policy, training & customer due diligence obligations.
The new money laundering regulations are a mandate for electronic verification methods – the 5th EU directive states they should be used “wherever possible” to reduce fraud and the potential human oversight which can often occur with manual document checking.
Loving your company's services! I switched to you from another provider, and what you deliver is much better, and your web interface is so much simpler to use.
I absolutely love it. I can't believe how easy it is to use and how user friendly it is in its format.
Love it – very happy client as well as we can now speed up the process by 4 days for him.
The system was extremely easy to set up and we were up and running with it very quickly… It made a refreshing change to be in that position so quickly.
This is very user friendly – brilliant! I wish I’d discovered this at the start of trading.
Very clear & simple. Used it, without reading the manual of course, just to give it a try. Excellent service.
I have just used Veriphy for the first time. It is excellent – so much easier than the old non-digital methods.