Noah Charney is a professor and an international author of fiction and non‐fiction, specializing in the fields of art history and art crime. He is the founder and president of ARCA, the Association for Research into Crimes against Art, a non‐profit research group on issues in art crime. His work in the field of art crime has been praised in such international forums as the New York Times Magazine, Time Magazine, BBC Radio, National Public Radio, El Pais, Vogue, Vanity Fair, Playboy, Elle and Tatler among many others. He has appeared on radio and television as an expert on art history and art crime, including BBC, ITV, CNBC and MSNBC. Charney is the author of numerous articles and a novel, The Art Thief (2007).
The potential role of high-end art and antiquities in money laundering schemes has attracted increasing attention over the last several years, particularly as the prices for such objects steadily rise and a tightening global enforcement and regulatory net has rendered other possible avenues for money laundering increasingly less attractive. The effort to subject U.S. dealers in art and antiquities to Anti-Money-Laundering (“AML”) obligations recently has gained new life.  As we blogged, the House Financial Services Committee just released three proposed bills to codify many of the reform ideas that have been swirling around the Bank Secretary Act (“BSA”) and AML and Combating the Financing of Terrorism (“CFT”) laws.  One of the bills — entitled as the “To make reforms to the Federal Bank Secrecy Act and anti-money laundering laws, and for other purposes” —  catalogues various detailed provisions seeking to reform the BSA and AML laws.  Nestled admist all of the other, generally higher-profile proposals (such as the creation of a BSA whistleblower program), one short section of this bill simply expands the list of defined “financial institutions” covered by the BSA to include “dealers in art or antiquities,” and then states that the Secretary of the Treasury shall issue implementing regulations within 180 days of the bill’s enactment.
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.
“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 paintings were sent "in respect to a money-laundering transaction," which was "related to this drug deal," she clarified, adding that "it was the money-laundering debt that Clemente was repaying." The U.S. Drug Enforcement Administration believes that oil paintings are "a way in which drug dealers launder money. It is an investment for their drug transaction proceeds," she said.
The guidelines of AAMD state that: “Deaccessioning is a legitimate part of the formation and care of collections and, if practiced, should be done in order to refine and improve the quality and appropriateness of the collection, the better to serve the museum’s mission.” The American Alliance of Museums is even more explicit: “For this [use of institutional resources] and other reasons (e.g., when items are considered redundant, are damaged beyond repair or are of poor quality), deaccessioning is both a logical and responsible collections management policy.” We uphold these professional standards and do so in the service of creating an ever-better museum experience for our public and scholars alike.
The commonest motivation for fraudulence is monetary gain. Fraudulence is most likely to occur when the demand for a certain kind of work coincides with scarcity and thus raises the market prices. Unprincipled dealers have encouraged technically skilled artists to create forgeries, occasionally guiding them to supply the precise demands of collectors or museums. This is by no means a modern phenomenon: in the 1st and 2nd centuries ad, sculptors working in Rome made replicas of Grecian works to satisfy the demands for the greatly admired Grecian sculpture of the preceding five centuries. These copies or adaptations apparently were not offered as contemporary work but as booty from Greece at the extraordinarily high prices paid for such works in imperial Rome. Similar circumstances may account for the “discovery” of a manuscript or autograph by a dead author or composer, although many such finds are quite legitimate and have been authenticated.
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]
This essay addresses provenance issues in the context of a sale. Of course the provenance of a piece is an important factor in determining its authenticity, but how important to the seller and buyer is knowing that, for example, there were three private owners between the artist and the current owner. If one of those owners was Paul Mellon or a major museum, it might be very important. And, have the buyer and seller made that importance clear in their sale agreement?
This essay addresses provenance issues in the context of a sale. Of course the provenance of a piece is an important factor in determining its authenticity, but how important to the seller and buyer is knowing that, for example, there were three private owners between the artist and the current owner. If one of those owners was Paul Mellon or a major museum, it might be very important. And, have the buyer and seller made that importance clear in their sale agreement?
In archaeology and paleontology, the derived term provenience is used with a related but very particular meaning, to refer to the location (in modern research, recorded precisely in three dimensions) where an artifact or other ancient item was found.[3] Provenance covers an object's complete documented history. An artifact may thus have both a provenience and a provenance.
The objective of provenance research is to produce a complete list of owners (together, where possible, with the supporting documentary proof) from when the painting was commissioned or in the artist's studio through to the present time. In practice, there are likely to be gaps in the list and documents that are missing or lost. The documented provenance should also list when the painting has been part of an exhibition and a bibliography of when it has been discussed (or illustrated) in print.
I'll make a confession right off the bat: I didn't give The Art Forger 4 stars because I was blown away by the prose, scene, setting, or characterization. Had those been up to snuff I'd have given it an easy 5. There are some flat characters, relies somewhat on stereo typical thinking about artists and their studios, it sports some letters written by someone else in stand alone chapters which jar a bit with the first person view point (one would assume our heroine would have no knowledge of thes ...more
A newly discovered type of art inevitably brings on a flood of forgeries. At the end of the 19th century, when the first small, attractive Tanagra figurines were found in Greece, the market very shortly was flooded with a myriad of fraudulent Tanagra terra-cotta statuettes. In the mid-20th century, African primitive art became very popular, and woodcarvers from Italy to Scandinavia responded to supply the demand. Later, a very early civilization was discovered in Turkey, and the few genuine Anatolian ceramic pieces that appeared on the market were followed immediately by very competent forgeries apparently made in the same location as the ancient pieces. The lack of knowledge about genuine pieces made detection extremely difficult.

Consistent with general AML principles, the AML Standards stress that beneficial ownership may be obscured behind multiple layers of intermediaries, such as shell companies or offshore companies involving trusts. The AML Standards further provide a list of possible red flags for identifying increased risks of money laundering presented by a client that:
Tom Ripley is involved in an artwork forgery scheme in several of Patricia Highsmith's crime novels, most notably Ripley Under Ground (1970), in which he is confronted by a collector who correctly suspects that the paintings sold by Tom are forgeries. The novel was adapted to film in 2005, and the 1977 film The American Friend is also partially based on the novel.
An art forger must be at least somewhat proficient in the type of art he is trying to imitate. Many forgers were once fledgling artists who tried, unsuccessfully, to break into the market, eventually resorting to forgery. Sometimes, an original item is borrowed or stolen from the owner in order to create a copy. Forgers will then return the copy to the owner, keeping the original for himself. In 1799, a self-portrait by Albrecht Dürer which had hung in the Nuremberg Town Hall since the 16th century, was loaned to Abraham Wolfgang Küfner [de]. The painter made a copy of the original and returned the copy in place of the original. The forgery was discovered in 1805, when the original came up for auction and was purchased for the royal collection.
Philip Byler, Broadening’s lawyer in New York, said that the inaccurate invoices were merely a shortsighted attempt by the art dealer that Broadening hired to save importation fees. “It was not done with the intention of smuggling,” he said. He also challenged the Brazilian authorities’ claim, saying that “Hannibal” was legally purchased from a company owned by Mr. Ferreira’s wife.

Every work of art carries with it not only the history of its creator, but of its owners as well. Provenance—the record of ownership for a work of art—provides important documentation explaining who, at various points in history, owned the painting, sculpture or artifact at hand. This is an especially important issue for museums, who pay careful attention to provenance to confirm the authenticity of a work of art and its rightful ownership.

In June, antiques dealers Laurent Kraemer, head of Paris’s venerable Kraemer Gallery, and chair specialist Bill Pallot, were arrested on suspicion of selling the Palace of Versailles four counterfeit medallion back chairs for €1.7 million ($1.9 million). Counted as “National Treasures,” the chairs were thought to be among a group of 13 created by Louis Delanois for the Palace living room in 1769, where they belonged to Louis XV’s last mistress, the countess du Barry.
A peculiar case was that of the artist Han van Meegeren who became famous by creating "the finest Vermeer ever"[7] and exposing that feat eight years later in 1945. His own work became valuable as well, which in turn attracted other forgers. One of these forgers was his son Jacques van Meegeren who was in the unique position to write certificates stating that a particular piece of art that he was offering "was created by his father, Han van Meegeren".[8]

Before addressing those questions, it is useful to consider how provenance is relevant to sales of art. Art litigation generally falls within one of three categories: disputes concerning ownership, disputes concerning authenticity, and, to a lesser extent, disputes concerning value. The provenance of a work may bear on each of those potential areas of dispute. Obviously, to the extent provenance represents a chain of title, it may bear quite directly on a dispute concerning ownership. (If “H.W. Göring, Berlin” is listed in the provenance, that is probably a red flag).3
Archaeologists ... don't care who owned an object—they are more interested in the context of an object within the community of its (mostly original) users. ... [W]e are interested in why a Roman coin turned up in a shipwreck 400 years after it was made; while art historians don't really care, since they can generally figure out what mint a coin came from by the information stamped on its surface. "It's a Roman coin, what else do we need to know?" says an art historian; "The shipping trade in the Mediterranean region during late Roman times" says an archaeologist. ... [P]rovenance for an art historian is important to establish ownership, but provenience is interesting to an archaeologist to establish meaning.
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.

A tale of literary forgery that came to light in the early 21st century was that of the celebrity biographer Lee Israel, who confessed in her memoir, Can You Ever Forgive Me? (2008), that while down on her luck in the 1990s she had forged and sold to collectors hundreds of letters by various notable figures—Louise Brooks, Noël Coward, Dorothy Parker, Humphrey Bogart, and Lillian Hellman among them.

* Names of previous owners do not constitute valid provenance unless they provide concrete and irrefutable proof that the work of art in question is by the artist who the seller says it is by. For example, if an individual is listed as being the owner of the particular work of art in question in a museum exhibit catalog about the artist, this would constitute valid provenance.
The United States similarly requires all cash transactions of $10,000 or more to be reported. Still, laundering involving art tends to be handled case by case. Federal prosecutors, who usually discover art-related laundering through suspicious banking activity or illegal transport across borders, have worked closely with other countries and aggressively used their powers under civil law to confiscate art that they can establish is linked to a crime, even in the absence of a criminal conviction.
* Provenance must specifically describe the piece of art that's being offered for sale in order to be valid. It should contain important information including dimensions, medium, date of creation (if known), title (if known), and other relevant details. Documents that do not specifically describe the work of art in question do not constitute valid provenance.
In the 18th and 19th centuries, the mania for classification and study of the past resulted in an upsurge in forgeries as the art market adjusted to accommodate the new interest in the artistic past. That interest in the classification of the past also led to the founding of academic disciplines such as the history of art. The study of art history and the creation of agreed-upon bodies of work for artists and eras, as well as advances in science, made possible in the 20th century the winnowing out of forgeries, fakes, and misattributions from authentic works. As art historians gained more knowledge about the past and the styles, materials, and working conditions of artists and historical epochs, inauthentic and fraudulent works were more readily exposed.
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