2024 AML Recap for the Art Market

In 2024, there was notable activity in the anti-money laundering (AML) and sanctions landscape for art market participants (AMPs) in the UK. The top story going into 2025 is the art market joining the regulated OFSI sector. We will be hosting a free Lunch & Learn webinar (register here) at noon on Friday 7 March about how this affects AMPs.  

Before turning to 2025, it may be helpful to take a look in the rearview mirror at 2024. Throughout the year, we highlighted various developments in our newsletters. The highlights include brief blogs on communications from His Majesty’s Revenue and Customs (HMRC), the Office of Financial Sanctions Implementation (OFSI), the National Crime Agency (NCA), and other relevant matters. Below are some of the key highlights. 

Looking Back at 2024: Key Updates

1. HMRC Developments

• Acceleration of HMRC Penalties for AMPs: There has been an increased focus on enforcement against AMPs, with the number of penalties being accelerated in recent months.
• HMRC Registration Requirements: Updates in July from HMRC clarified when and what types of intermediaries in the art market need to register.
• Avoiding HMRC Scams: Guidance in October was issued on how to avoid being scammed by fake HMRC agents, whether via phone calls or letters.

2. Economic Crime Levy Doubled for Certain AMPs

The Economic Crime Levy for UK AMPs with revenue greater than £1BN was increased. The Levy for the rest of the market remains unchanged.

3. Updates from the National Crime Agency (NCA)

• New SAR Portal: The NCA launched a new portal for filing Suspicious Activity Reports (SARs). However, a disappointing 0.04% of SARs were filed by AMPs or High Value Dealers, which has raised concerns among regulators.
• Amber Alert for Sanctions Breaches: The NCA issued an amber alert regarding potential sanctions breaches and AMPs storing works of art in violation of regulations. “Storage” includes short term storage  pre-sale and post-purchase.

4. OFSI’s Year End Notification

OFSI notified the art market about changes taking effect 14 May 2025.  More details on this update can be found here. Please also join our free webinar on 7 March at 12pm (GMT), with Alexandra Melia, an international sanctions specialist and partner Steptoe, to hear how this change affects AMPs and to ask questions.  

5. AML Protect: A New FCS Tool to help AMPs Comply with the UK MLRs

FCS launched AML Protect, a free and easy-to-use tool that allows you to search whether fellow UK AMPs are registered with HMRC. The tool also provides reminders about your own AMP registration renewal date.

Webinars to Support AMPs’ Compliance

Throughout 2024, FCS hosted free webinars to help AMPs comply with their obligations and avoid risks and penalties. We were honoured to have a range of knowledgeable experts join us, including:

• Customer and Object Due Diligence: Managing risk and criminal liability, with James Ratcliffe, General Counsel of the Art Loss Register.
• AML Penalties and Enforcement: A comparison of the UK and French government approaches to the enforcement of the 5th Money Laundering Directive, featuring expert art lawyers from Borghese Associés, Paris.
• AML in the Art and Antiquities Sector: A session on AML in 2024, with Irina Tarsis from the Art Law Centre and Andrew C. Adams, Partner at Steptoe, New York.
• AML Compliance for Interior Designers: A session hosted with the British Institute of Interior Designers (BIID), focusing on AML compliance for interior designers.

FCS Speaking Engagements in 2024

FCS was honoured to be invited to speak at several key events in 2024, including in London, Paris, and Milan. Rena Neville, FCS’s representative, was featured as a speaker at the following notable events:

• AML and the Art Market: hosted by the Centre for Art Law on 26 March 2024 in Paris.
• International Conference on Business Integrity in Art: As a guest of UNESCO’s Chair for Business Integrity and Crime Prevention in the Art Market and ISPAC, Rena presented at a conference held in Milan on 30 September 2024, 
• Confidentiality in the Art Market: Hosted by the Art Lawyers Association, Rena joined a panel on “Confidentiality, Its Reasons and Limits,” at the ALA annual conference on 15 November 2024 in London. The Conference was entitled: “Preventing Art Crimes Through Regulation and Self-regulation”
• Artlogic’s Connect 24: Rena participated in a panel entitled “Regulating for Tomorrow” during Artlogic’s multi-day, free-to-attend online conference on 21 November 2024.

Conclusion

As we look back on 2024, the Government continues to upgrade and evolve its supervision and enforcement of AML and Sanctions regulation of the art market. It remains important for AMPs to be vigilant to the evolving regulatory environment to avoid inadvertently crossing the line to abuse by criminals. As the art market adapts to these developments, FCS remains committed to providing the guidance, resources, and expertise necessary to help AMPs navigate this evolving landscape. With OFSI’s upcoming inclusion of AMPs as registrants and continued focus on enforcement, now is the time for art market participants to ensure they are fully compliant and prepared for the changes ahead. Reach out to FCS compliance here.