Finally, under Guideline 6, the AML Guidelines provides that art businesses must maintain adequate records of their due diligence efforts. Perhaps stating the obvious, but perhaps also implicitly acknowledging the existence of practices by certain dealers, the AML Guidelines observe that “[a]ll documents issued by an Art Business in connection with a transaction (e.g. valuations, sale and purchase agreements, invoices, shipping documents, import / export declarations etc.) should be true, accurate and contemporaneous and represent the honestly held professional opinions of the Art Business.” Likewise, dealers “should refuse all requests from clients to alter, back date, falsify or otherwise provide incomplete or misleading documentation or information relating to a transaction. If there are legitimate reasons for altering a document (e.g. invoicing error etc.) the circumstances and justification should be fully documented and retained on file for future reference and audit.”
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There is no comparable entity in the art market. But were the same type of program instituted in the art market, it would only require that the auction house, dealer or lawyer know the beneficial owner and be able to reveal that information to federal authorities. It would not require the other side of the transaction to learn the seller (or buyer’s) identity.
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.
Recent technology developments have aided collectors in assessing the temperature and humidity history or the wine which are two key components in establishing perfect provenance. For example, there are devices available that rest inside the wood case and can be read through the wood by waving a smartphone equipped with a simple app. These devices track the conditions the case has been exposed to for the duration of the battery life, which can be as long as 15 years, and sends a graph and high/low readings to the smartphone user. This takes the trust issue out of the hands of the owner and gives it to a third party for verification.
“There are museums in the past who have wanted to take something of high value down and replace it with a replica, but that’s a behind-the-curtain thing,” says Timothy Carpenter, a supervisor and special agent in the FBI’s art theft program who frequently lectures collectors to do the same. “If you’ve got this $10 million painting that you’re concerned about, you can probably afford to make a $5,000 copy made and hang it. It’s the only guarantee to keep their painting safe if they don’t have security on their residence.”
The victims of art fraud are the artists who own the works, collectors who are defrauded through purchase of forged works, and museums that may use public or donated money to buy fraudulent works of art or works with a falsified provenance. Countries that lose valuable works of art to the international art market under false pretenses are also subject to art fraud.
Forgers of older artworks sometimes attempt to override forensic methods by using or plausibly imitating authentic materials. One of the best-known cases is that of forger Han van Meegeren, who used a modern paint mixture but mimicked an older technique to a sufficient degree that his paintings were certified, as he intended, as originals by the 17th-century Dutch master Johannes Vermeer. Even though further testing can reveal that a paint’s age has been masked, museums and collectors often simply accept initial results.
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