^ Tan, Yu Shyang; Ko, Ryan K.L.; Holmes, Geoff (November 2013). "Security and Data Accountability in Distributed Systems: A Provenance Survey". 2013 IEEE 10th International Conference on High Performance Computing and Communications & 2013 IEEE International Conference on Embedded and Ubiquitous Computing. IEEE: 1571–1578. doi:10.1109/hpcc.and.euc.2013.221. ISBN 9780769550886.
Besides that, there are other ways which an expensive art piece may be used to launder money. The underlying principle is this: there is no "standard answer" on how to launder money. Money laundering is more like an art than a science. As long as the whole process looks logical, reasonable and realistic, it is up to your creativity how you want to launder money with it!

The art world was quick to fall in line, with London’s National Gallery displaying the Gentileschi and the Pamigianino popping up at New York’s Metropolitan Museum of Art. At one point, the Louvre in Paris launched a fundraising campaign to buy the Hals, dubbing it a “national treasure” after it was authenticated by France’s Center for Research and Restoration.

The wealthy figured this out in a big way back in the 1980s, giving rise to ‘art stars’ valued in the millions. And with the increasing popularity and geographical scope of biennials and art fairs in the 1990s, rich people all over the world now have access to seas of multi-million dollar investments that can be rolled up and stored just about anywhere.
* FIRST AND FOREMOST: NEVER BID ON OR BUY ART WITHOUT SEEING THE PROVENANCE FIRST. Sellers may say they have provenance, but will only show or give it to winning bidders or buyers after they purchase the art. Other common excuses for not showing provenance include protecting the privacy of the previous owners, keeping bidders from contacting previous owners, or keeping it private. In most cases, the real reason for not showing the provenance is that it's questionable in nature or worse yet, it doesn't even exist. If the seller won't let you see it up front, don't bid and don't buy. Period.
← The crate went through customs with a valuation of $100, though it contained Basquiat’s 1982 painting Hannibal (commodities valued under $200 aren’t required to be declared at customs.) The painting had been bought and shipped by Brazilian Banker Edemar cid Ferreira in an elaborate scheme to launder over $50 million that was illegally obtained when Ferreira’s bank, Banco Santos, went bankrupt.
Fakes and forgeries in the art world are the stuff of legend, the subject of books, films, and television series the world over. In real life, they land people behind bars. 2016 brought us many unwanted things, but it also appears to have been a year when a huge amount of authenticity disputes took place. The spats took shape from contested provenance, to painters faking their own work, to a multimillion dollar Old Masters scandal. From farce to tragedy, we’ve compiled the highlights of this year’s biggest art forgery scandals below.
I confess to being wrapped up in the reading of this book and particularly the art of art forgery Shapiro unmasks. I have often wondered why a painting that has hung for hundreds of years on museum walls and been praised for its style and beauty is not just as valuable and just as precious when it is discovered that it was not painted by one of the greats but by his apprentice. Doesn't the art remain the same. Isn't it just as valuable as art even if it was painted by an unknown? We seem to carr ...more

This scam works for the scammer because the transaction will take time due to the distance involved for both parties.  To the unwary artist, the credit card transaction will go through, the art is shipped, only for the artist to find out later that credit card number was stolen and or that the check was no good and that the artist will not be receiving their funds.  Then as a consequence of all this, the artist is out of their art and the costs involved, plus the cost of the shipping. 
The AML Standards for Art Market Operators (“AML Standards”) are set forth by the Basel Institute on Governance, an independent not-for-profit organization.  Not surprisingly, the AML Standards adopt a “risk based” approach to establishing measures to mitigate money laundering risks, and further note that “[s]mall businesses may not have the resources to address money-laundering risks in the same way that large auction houses or major dealers and galleries will have, and may have a different risk exposure.”  The AML Standards are intended to apply to everone trading in art objects, and intermediaries between buyers and sellers.  They also suggest that service industries supprting the trade in art objects that are already subject to AML laws, like financial institutions, should identify their clients and customers in the art trade “as higher risk as long as there are no internationally applicable standards.”
© 2019 Association of Certified Fraud Examiners, Inc. "ACFE," "CFE," "Certified Fraud Examiner," "CFE Exam Prep Course," "Fraud Magazine," "Association of Certified Fraud Examiners," the ACFE Seal, the ACFE Logo and related trademarks, names and logos are the property of the Association of Certified Fraud Examiners, Inc., and are registered and/or used in the U.S. and countries around the world.
Within computer science, informatics uses the term "provenance"[33] to mean the lineage of data, as per data provenance, with research in the last decade extending the conceptual model of causality and relation to include processes that act on data and agents that are responsible for those processes. See, for example, the proceedings of the International Provenance Annotation Workshop (IPAW)[34] and Theory and Practice of Provenance (TaPP).[35] Semantic web standards bodies, including the World Wide Web Consortium in 2014, have ratified a standard data model for provenance representation known as PROV[36] which draws from many of the better-known provenance representation systems that preceded it, such as the Proof Markup Language and the Open Provenance Model.[37]

In the geologic use of the term, provenance instead refers to the origin or source area of particles within a rock, most commonly in sedimentary rocks. It does not refer to the circumstances of the collection of the rock. The provenance of sandstone, in particular, can be evaluated by determining the proportion of quartz, feldspar, and lithic fragments (see diagram).


More typically, provenance will be scrutinized where questions of authenticity arise. A few years back, an issue arose concerning the authenticity of a century-old sculpture attributed to a 20th-century artist of iconic stature. The work was sold to a prominent collector through an auction house with a certificate of authenticity from a qualified and appropriately-credentialed scholar of the artist’s work. According to the provenance provided at the time of sale, the work had been acquired in Paris after World War II by an art history professor from an Ivy League university. When questions of authenticity arose several years later, an Internet search and a few telephone calls to the university revealed that no such art history professor ever existed. Also left off the provenance was the fact that just months prior to the multi-million dollar sale to the prominent collector, the work had been purchased from an obscure antique store owned and operated by someone who had served jail time for art insurance fraud. Had these “errors and omissions” in the provenance been discovered at the time of the sale, the sale itself and several years of costly litigation would have been avoided.
Of course, certain countries already impose AML regulations on the art world. The European Union Commission issued its 5th Anti-Money Laundering Directive in June 2018, which must be implemented by Member States by January 2020, and which in part expands its coverage of “obliged entities” to persons trading in art, acting as intermediaries in the trade of art, or storing art in freeports, if the value of the transaction or a group of linked transactions equals €10,000 or more. In the United States, although the BSA already applies to dealers in precious metals, stones and jewels, and thereby requires them to file Suspicious Activity Reports and comply with other AML obligations, no such rules currently apply to U.S. dealers in art.
It plainly makes sense for sellers and buyers to get ahead of the curve and finally reach a clear understanding about what is at stake when provenance or related information such as exhibition history is provided. Is the provenance really intended to be a complete chain of title and possession, given that there is no title registry for personal property such as works of art? Is that even possible, given the penchant for anonymity among many wealthy collectors, not to mention the confidentiality of private sales? Further complicating research into ownership is the fact that many art transactions are documented with simple invoices, rather than detailed contracts; often it is unclear from the face of the documents, particularly in multi-party back to back transactions, whether a dealer is acting as a principal or as agent for one of the parties.
The provenance is listed in chronological order, beginning with the earliest known owner. Life dates of owners, if known, are enclosed in brackets. Uncertain information is indicated by the terms “possibly” or “probably” and explained in footnotes. Dealers, auction houses, or agents are enclosed in parentheses to distinguish them from private owners. Relationships between owners and methods of transactions are indicated in the text and clarified through punctuation: a semicolon is used to indicate that the work passed directly between two owners (including dealers, auction houses, or agents), and a period is used to separate two owners (including dealers auction houses or agents) if a direct transfer did not occur or is not known to have occurred. Footnotes are used to document or clarify information.
A forgery ring busted in 2011 is still having repercussions across the Alberto Giacometti market. Dutch Giacometti forger Robert Driessen made €8 million ($8.9 million) selling forged sculptures, along with thousands of fake bronzes, before his misdeeds were discovered. In 2015, the case again made headlines when a German dealer was caught trying to sell one of the works still at large to an undercover agent.

The notion of intellectual property—the idea that artists’ works belong to them—dates at least to medieval Europe, though history records examples of the concept as early as ancient Greece. It had taken hold sufficiently during the Renaissance for Michelangelo to take umbrage when his work was misattributed. It was reported that when he discovered that another artist was receiving credit for sculpting the famous Pietà (now in St. Peter’s Basilica in Rome), Michelangelo returned with his chisel and added his signature across the centre of the sculpture, on the prominent sash across Mary’s upper body (in Italian): “Michelangelo Buonarroti, Florentine, made this.”

×