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.
Recently an art dealer faced a claim that the provenance he provided with a painting was incomplete because it did not include all of the owners going back to the artist. According to the disgruntled buyer, this omission was material because the provenance included a gallery involved in a well-publicized forgery scandal and, therefore, the painting would be hard to re-sell at an appropriate price without a verifiable provenance going back to the artist. Significantly, the painting had been sold at auction a decade earlier and the dealer had provided the current buyer with exactly the same pre-auction provenance as the prominent auction house had provided at the time of the auction sale. The dealer did not think to second-guess or investigate the completeness of the provenance provided by the auction house and did not have the resources to do so. Previous owners of the work did not want their identities disclosed due to privacy concerns (which is not uncommon), so a more complete provenance was not even feasible. Nevertheless, the buyer claimed that he had been promised a “verifiable provenance” and sought to revoke the sale. The buyer did not contend that the work was not an authentic painting by the famous artist, but merely that it would be hard to re-sell without a complete and verifiable provenance going back to the artist. Although the dispute ultimately was resolved without litigation, this episode starkly highlights the potential risks a seller may be assuming by providing—without qualification—a provenance that he or she has no real reason to doubt.
The Art Loss Register (ALR), founded in 1991, grew out of the International Foundation for Art Research (IFAR: founded 1969), a not-for-profit organization that initiated and maintained (until 1997) an international database of stolen works of art, antiques, and collectables. After 1998 ALR assumed maintenance, although IFAR retains ownership, and the two organizations work closely together.

I loved this book, all the art references and the art processes explained here are catnip to me. I love museums and art, therefore any book mixing both its going to my criteria. The only reason I'm not giving it 5 stars is because I hated the main characther personality , (so much so that I was rooting for her to get in trouble) but I guess all is well that ends well!!! :) I am completely satisfied with this book!


The Responsible Art Market, or RAM, is an industry-supported not-for-profit organization which describes itself as ‘”[r]aising awareness of risks faced by the art industry and providing practical guidance on establishing and implementing responsible practices to address those risks.”  On its website, RAM provides both an Art Transaction Due Diligence Toolkit, as well as Guidelines on Combatting Money Laundering and Terrorist Financing (“AML Guidelines”).  The AML Guidelines are similar to the protocols set forth by the Basel Institute, but provide slightly more concrete detail.  They set forth eight basic principles:
In the United States federal money laundering statutes apply to nearly every major transaction through which illegal profits are disguised to look legal. Typically, dirty money is laundered through the purchase of, say, a penthouse apartment, or mixed in with the earnings of a legitimate business like a restaurant. When gambling winnings or drug proceeds come out the other end, they appear as a real estate asset or business profit. They look clean.
Open a foreign bank account in a tax haven like Switzerland or the Cayman Islands. Banks in these countries are not required by law to hand over information about your account to anyone without your consent. If you open what's called a “numbered account” in a private Swiss bank like Union Bank of Switzerland or Credit Suisse Group, a number or code name will be associated with the account, rather than your name. To open a numbered account, you will most likely need to travel to Switzerland to do it, though if this is impossible, there are firms that help people set up off-shore bank accounts that can help you. You will most likely need to make an initial deposit of at least $100,000 to open the account, which will cost roughly $300 a year to maintain.
In seeking to revoke the sale based on an “incomplete” provenance, the buyer claimed that the provenance constituted a warranty under the Uniform Commercial Code (“UCC”) because it was part of the “basis of the bargain.” Under UCC § 2-313(1)(a), “[a]ny affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.” Section 2-313(1)(b) provides that “[a]ny description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.” It is hard to argue that these sections are not worded broadly enough to encompass the provenance of art work, assuming that provenance was considered part of “the basis of the bargain” when the artwork was sold. The bad news for the seller is that determining whether the provenance was part of “the basis of the bargain” in a given transaction will likely be a question of fact for a jury to decide. That means that, absent precautionary measures such as an express disclaimer as to completeness and accuracy, the question of whether the provenance provided by the seller in an art sale constitutes a warranty will not be decided until after a good deal of expensive litigation. And it is certain that if the provenance is arguably misrepresented or incomplete, the buyer will be able to produce an “expert” to testify about the importance of provenance in the art world, all in support of the buyer’s argument that the given provenance was part of the basis of the bargain.

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.
* An illustration of the art taken from an old auction catalog without the accompanying description does not constitute valid provenance unless the auction house is or was able to demonstrate beyond doubt that the art was by the artist in question. For example, the auction house may have sold it as "attributed" to the artist. Again, get a copy of the actual auction catalog or read the full listing online to see how the art was described and represented.
I loved this book, all the art references and the art processes explained here are catnip to me. I love museums and art, therefore any book mixing both its going to my criteria. The only reason I'm not giving it 5 stars is because I hated the main characther personality , (so much so that I was rooting for her to get in trouble) but I guess all is well that ends well!!! :) I am completely satisfied with this book!
A recent, thought-provoking instance of potential art forgery involves the Getty kouros, the authenticity of which has not been resolved. The Getty Kouros was offered, along with seven other pieces, to The J. Paul Getty Museum in Malibu, California, in the spring of 1983. For the next 12 years art historians, conservators, and archaeologists studied the Kouros, scientific tests were performed and showed that the surface could not have been created artificially. However, when several of the other pieces offered with the Kouros were shown to be forgeries, its authenticity was again questioned. In May 1992, the Kouros was displayed in Athens, Greece, at an international conference, called to determine its authenticity. The conference failed to solve the problem; while most art historians and archeologists denounced it, the scientists present believed the statue to be authentic. To this day, the Getty Kouros' authenticity remains a mystery and the statue is displayed with the date: "Greek, 530 B.C. or modern forgery".[23]
Archaeological sites Ancient Greek pottery Automobiles Bone, horn, and antler objects Books, manuscripts, documents and ephemera Ceramic objects Clocks Copper-based objects Feathers Film Flags and banners Frescos Fur objects Glass objects Herbaria Historic gardens Human remains Illuminated manuscripts Insect specimens Iron and steel objects Ivory objects Judaica Lacquerware Leather objects Lighthouses Metals Musical instruments Neon objects New media art Outdoor artworks Outdoor bronze objects Outdoor murals Paintings Painting frames Panel paintings Papyrus Parchment Performance art Photographs Photographic plates Plastic objects Pompeian frescoes Shipwreck artifacts Silver objects South Asian household shrines Stained glass Taxidermy Textiles Tibetan thangkas Time-based media art Totem poles Vehicles Vinyl discs Woodblock prints Wooden artifacts Wooden furniture

In the end, maybe this guide was never intended for amoral businessmen in the first place (unless we’ve sorely misjudged our readership!) Maybe this it's more useful to the emerging artists who look for validation (read: dollar signs) in a competitive market. Maybe the artist’s secret to success is appealing to the corrupt and becoming an accomplice to white collar crime (but hopefully not). Are economic criminals the driving force of the art economy? Probably not, but what we do know for certain is that art isn’t only valuable as the evidence of creative genius. It is, to many, a vault.
A notable forger of the late 20th century was Shaun Greenhalgh, who created several works of art in a variety of styles and, after carefully constructing a credible provenance for each, sold them over the course of roughly two decades with the help of his parents, George and Olive Greenhalgh. One of his notable forgeries was a stoneware sculpture, The Faun, thought to be a rare unglazed ceramic sculpture by Paul Gauguin, another was the Amarna Princess believed to date from 1350 bc.
Forgery, in art, a work of literature, painting, sculpture, or objet d’art that purports to be the work of someone other than its true maker. The range of forgeries extends from misrepresentation of a genuine work of art to the outright counterfeiting of a work or style of an artist. Forgery must be distinguished from copies produced with no intent to deceive.
Portrait of a Woman, attributed to Goya (1746-1828). X-ray images taken of this painting in 1954 revealed a portrait of another woman, circa 1790, beneath the surface. X-ray diffraction analysis revealed the presence of zinc white paint, invented after Goya's death. Further analysis revealed that the surface paint was modern and had been applied so as not to obscure the craquelure of the original. After analysis, the conservators left the work as you see it above, with portions of old and new visible, to illustrate the intricacies of art forgery, and the inherent difficulty of detecting it.
Art forgery may also be subject to civil sanctions. The Federal Trade Commission, for example, has used the FTC Act to combat an array of unfair trade practices in the art market. An FTC Act case was successfully brought against a purveyor of fake Dalí prints in FTC v. Magui Publishers, Inc., who was permanently enjoined from fraudulent activity and ordered to restore their illegal profits.[28][29] In that case, the defendant had collected millions of dollars from his sale of forged prints.
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!
In summer 2009, ARCA - the Association for Research into Crimes against Art - began offering the first postgraduate program dedicated to the study of art crime. The Postgraduate Certificate Program in Art Crime and Cultural Heritage Protection includes coursework that discusses art fakes and forgery. Education on art crime also requires research efforts from the scholarly community through analysis on fake and forged artworks.[32]
Sorry, could not care if Claire was successful or not. I know we were supposed to be sympathetic toward her, why else for the youth prison volunteerism, but she was too untrustworthy. When I read it, it appeared as if she knew all along that she was making a forgery so that Aidan could sell it as the original but by the end of the book she had miraculously convinced herself that all she was doing was making a copy of a copy and that isn’t a crime. Of course she had her penance of never knowing i ...more
IN Queens, a guy working in his garage churned out “Pollocks” and “Rothkos” that fooled the experts, sold for millions of dollars and helped destroy the Knoedler & Company gallery, as we learned in recent months. In China, thousands of artisans have forged the country’s artistic treasures, both ancient and modern, according to a report in The New York Times.
In another common form of money laundering, called smurfing (also known as "structuring"), the criminal breaks up large chunks of cash into multiple small deposits, often spreading them over many different accounts, to avoid detection. Money laundering can also be accomplished through the use of currency exchanges, wire transfers, and "mules"—cash smugglers, who sneak large amounts of cash across borders and deposit them in foreign accounts, where money-laundering enforcement is less strict.
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

While pretty much all art could be scandalized, some are more susceptible to scheming than others. Digital artist Daniel Temkin points out that digital art, which doesn’t need to be shipped or stored because it has no physical manifestation, is particularly ripe for your risky business. To make it easy for you, Temkin has created an "online auction house, offering net art by internationally renowned artists and their impersonators" called NetVVorth. The art experiment/tongue-in-cheek criminal resource hosts a series of counterfeit works created by legitimate net artists. “The collection is offered to expose net art as a viable investment to serious collectors by establishing a shadow market, proving its ability to hide illicit profits and transfer them easily around the globe. All works are supplied with provenance papers. All sales are in Bitcoin. The true counterfeiter is identified only to the owner of the piece.” The collection includes roughly 35 works. Pick your favorite. (And if you hate digital art, like most collectors, you can always hire an art consultant who can help you pick out some “reeeeeal” art.)


I loved that I recognized many of the locations mentioned here, like The Back Bay, The South End, Newbury Street, The Mandarin Oriental Hotel, The Museum Of Modern Art, of course the Isabella Stewart-Gardner Museum. I have actually long held a little-known fascination with the Gardner heist, primarily because of the idea that her will induces the museum board to leave empty frames in their place, even decades after the only unsolved large-scale art heist. It is unsettling, moving, eye-opening, a ...more
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.
In the case of photographer Man Ray[25] print production was often poorly managed during his lifetime, and many of his negatives were stolen by people who had access to his studio. The possession of the photo-negatives would allow a forger to print an unlimited number of fake prints, which he could then pass off as original. Fake prints would be nearly indistinguishable from originals, if the same photographic paper was used. Since unused photographic paper has a short (2–5 years) useful life, and the composition of photographic paper was frequently changed, the fakes would have had to be produced not long after the originals.
The problem isn’t their argument that seller’s should reveal themselves. It’s the slapdash evidence and flawed logic they use. The story’s biggest problem begins with the lede where it is argued that real estate sellers are transparent. Several graphs deeper in the story it is revealed that real estate transactions that are on a par with major art transactions are, in fact, not transparent. How do we know that? Because the Times tells us about a pilot program that requires transparency. Here’s the opening graph:
The copy is the easiest forgery to make and is usually the easiest to detect. When a duplicate has appeared the problem is merely to determine which is the original and which is the copy. At least a dozen excellent replicas of Leonardo da Vinci’s Mona Lisa exist, many of them by his students. Various owners of these copies have at various times claimed that they possess the original. The Louvre is satisfied that it owns the painting by Leonardo because close examination reveals slight changes in the composition underneath the outermost layer of paint, and because this painting has an unbroken record of ownership from the time that the artist painted it.
In this context, the provenance can occasionally be the detailed history of where an object has been since its creation,[26] as in art history contexts – not just since its modern finding. In some cases, such as where there is an inscription on the object, or an account of it in written materials from the same era, an object of study in archaeology or cultural anthropology may have an early provenance – a known history that predates modern research – then a provenience from its modern finding, and finally a continued provenance relating to its handling and storage or display after the modern acquisition.
John Drewe was able to pass off as genuine paintings, a large number of forgeries that would have easily been recognised as such by scientific examination. He established an impressive (but false) provenance and because of this galleries and dealers accepted the paintings as genuine. He created this false provenance by forging letters and other documents, including false entries in earlier exhibition catalogues.[5]
This was the first book I read from the cache I purchased at the Miami International Book Fair. I wish I had a chance to read it before hearing B.A. Shapiro speak. After reading The Art Forger I am a fan. B.A. Shapiro gave a talk about her writing process with M.J. Rose, author of The book of Lost Fragrances, another novel I grabbed. I don't know if they were put on a panel together because they both go by their initials but it seemed a good pairing and their discussion was very insightful. I re ...more
Regardless of whether this provision ultimately is enacted, the underlying issue will persist.  This post discusses some of the general concerns that the art and antiquities world can be misused as a conduit for dirty money.  We then discuss the AML Standards for Art Market Operators proposed by the Basel Institute on Governance, and similar standards set forth by the Responsible Art Market, both of which attempt to set forth a framework for those in the business of trading art to mitigate their money laundering risks.

The scientific examination of a forged document may demonstrate its spurious character by showing that the parchment, paper, or ink cannot belong to the period to which they pretend. A skillful forger takes care, however, to secure appropriate materials; and in any case, scientific examination will not avail against the contemporary forger, living in the same age as his victim. Accordingly, other tests must be employed.


The Chinese art market, where regulation is lax, is thought to be particularly prone to money laundering. "The [Chinese] art market has become more and more abnormal," Wang Shouzhi, dean of the Cheung Kong School of Art and Design at Shantou University, told the South China Morning Post in April. "It is saturated with business tricks, fake works and fake prices. … It has become a tool for corruption and money laundering."
Some forgers have created false paper trails relating to a piece, in order to make the work appear genuine. British art dealer John Drewe created false documents of provenance for works forged by his partner John Myatt, and even inserted pictures of forgeries into the archives of prominent art institutions.[11] In 2016, Eric Spoutz plead guilty to one count of wire fraud related to the sale of hundreds of falsely attributed artworks to American masters accompanied by forged provenance documents. Spoutz was sentenced to 41 months in federal prison and ordered to forfeit the $1.45 million he made from the scheme and pay $154,100 in restitution.[12]
Though there are no hard statistics on the amount of laundered money invested in art, law enforcements officials and scholars agree they are seeing more of it. The Basel Institute on Governance, a nonprofit research organization in Switzerland — the site of the world’s premier contemporary and Modern art show — warned last year of the high volume of illegal and suspicious transactions involving art. But regulation has been scattershot and difficult to coordinate internationally.
The quality of provenance of an important work of art can make a considerable difference to its selling price in the market; this is affected by the degree of certainty of the provenance, the status of past owners as collectors, and in many cases by the strength of evidence that an object has not been illegally excavated or exported from another country. The provenance of a work of art may vary greatly in length, depending on context or the amount that is known, from a single name to an entry in a scholarly catalogue some thousands of words long.
Further, and as noted, other traditional vehicles for laundering money have become less attractive, thereby driving those who need a mechanism to launder large sums into the arms of the art world.  As we repeatedly have blogged, one of the most time-honored and relatively convenient vehicles for laundering — real estate — is under intense scrutiny and now is subject in the U.S. to the Financial Crimes Enforcement Network (“FinCEN”)’s ongoing Geographic Targeting Orders (these require U.S. title insurance companies in many parts of the U.S. to identify the natural persons behind legal entities used in purchases of residential real estate involving $300,000 or more and performed without a bank loan or similar form of external financing).
   Redistribution of the world’s wealth after the Renaissance created an explosive demand for art by a newly educated and prosperous mercantile middle class. Guilds of Master artists and students became virtual factories for art that was produced to fill this demand. The sale of State and Ecclesiastical art collections created new secondary markets in the form of dealers, galleries and auction houses. For the first time in history, art became a commercial commodity.
Data provenance covers the provenance of computerized data. There are two main aspects of data provenance: ownership of the data and data usage. Ownership will tell the user who is responsible for the source of the data, ideally including information on the originator of the data. Data usage gives details regarding how the data has been used and modified and often includes information on how to cite the data source or sources. Data provenance is of particular concern with electronic data, as data sets are often modified and copied without proper citation or acknowledgement of the originating data set. Databases make it easy to select specific information from data sets and merge this data with other data sources without any documentation of how the data was obtained or how it was modified from the original data set or sets.[31] The automated analysis of data provenance graphs has been described as a mean to verify compliance with regulations regarding data usage such as introduced by the EU GDPR.[69]

Further, and as noted, other traditional vehicles for laundering money have become less attractive, thereby driving those who need a mechanism to launder large sums into the arms of the art world.  As we repeatedly have blogged, one of the most time-honored and relatively convenient vehicles for laundering — real estate — is under intense scrutiny and now is subject in the U.S. to the Financial Crimes Enforcement Network (“FinCEN”)’s ongoing Geographic Targeting Orders (these require U.S. title insurance companies in many parts of the U.S. to identify the natural persons behind legal entities used in purchases of residential real estate involving $300,000 or more and performed without a bank loan or similar form of external financing).
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.
Following these professional museum standards, TMA periodically reviews its holdings and occasionally deaccessions a select few works of art, based on what will enhance the entire Museum collection. The funds realized from deaccessioning are used solely to improve TMA’s collection through the purchase of new art, in compliance with the Association of Art Museum Directors (AAMD) Professional Practices in Art Museums (see here), the American Alliance of Museums (AAM) Code of Ethics (see the most recent update to AAM’s guidelines here) and the International Council of Museums (ICOM) Code of Ethics (see here).
Though there are no hard statistics on the amount of laundered money invested in art, law enforcements officials and scholars agree they are seeing more of it. The Basel Institute on Governance, a nonprofit research organization in Switzerland — the site of the world’s premier contemporary and Modern art show — warned last year of the high volume of illegal and suspicious transactions involving art. But regulation has been scattershot and difficult to coordinate internationally.
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Let’s get back to the real estate pilot program that lies at the heart of the Times’s confusion. That federal program, which may or may not be continued, relies upon mortgage title insurance companies to report to authorities the ultimate beneficial owner of any vehicle used to buy or sell very valuable real estate. It does not require the seller to reveal the beneficial owner to the buyer or vice versa.
Often a thorough examination (sometimes referred to as Morellian Analysis)[14] of the piece is enough to determine authenticity. For example, a sculpture may have been created obviously with modern methods and tools. Some forgers have used artistic methods inconsistent with those of the original artists, such as incorrect characteristic brushwork, perspective, preferred themes or techniques, or have used colors that were not available during the artist's lifetime to create the painting. Some forgers have dipped pieces in chemicals to "age" them and some have even tried to imitate worm marks by drilling holes into objects (see image, right).
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