Changes to Art Market Regulations in the EU
As of 10 January 2020, a new law has come into effect in the UK which affects the art market. It is an amendment to the EU's Fifth Money Laundering Directive (5MLD). From this date, the art market across Europe becomes a regulated sector for anti-money laundering purposes.
The new legislation makes it mandatory for all galleries to verify the identity of clients when buying and selling artworks. This will be in the form of Customer Due Diligence style checks. These checks are similar to the 'Know Your Client' (KYC) procedures already used by banks, law firms and the larger auction houses. The checks apply to both new and existing clients.
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