Recently, photographs have become the target of forgers, and as the market value of these works increase, so will forgery continue. Following their deaths, works by Man Ray and Ansel Adams became frequent targets of forgery. The detection of forged photography is particularly difficult, as experts must be able to tell the difference between originals and reprints.

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.
The Wolf of Wall Street was a hit when it was released in 2013. Moviegoers all over the world loved the story of excessive wealth and greed. But most people didn’t know that the movie was partially funded by a money-laundering scheme involving famous works of art. Malaysian Prime Minister, Najib Razak, had siphoned part of a $1 billion fortune from the Malaysian sovereign wealth fund into American assets, such as real estate and paintings by Basquiat, Rothko, and Van Gogh.

Recently, photographs have become the target of forgers, and as the market value of these works increase, so will forgery continue. Following their deaths, works by Man Ray and Ansel Adams became frequent targets of forgery. The detection of forged photography is particularly difficult, as experts must be able to tell the difference between originals and reprints.
It is hard to imagine a business more custom-made for money laundering, with million-dollar sales conducted in secrecy and with virtually no oversight. What this means in practical terms is that “you can have a transaction where the seller is listed as ‘private collection’ and the buyer is listed as ‘private collection,’ ” said Sharon Cohen Levin, chief of the asset forfeiture unit of the United States attorney’s office in Manhattan. “In any other business, no one would be able to get away with this.”
Provenance can be difficult to determine. The information presented here is intended to be a teaching tool for those interested in provenance research, specifically how to read it and what to look out for in terms of periods and areas of added scrutiny. Beyond introducing readers to the subject, the page also aims to be the new home for information about the Toledo Museum of Art’s recently acquired works of art, especially those that require additional provenance research. The Museum welcomes any information from the public that may help close gaps or provide further information into the history of an object’s ownership.

On the night of St Patrick's Day in 1990 when the attention of Boston was focused elsewhere, thieves entered the Isabella Stewart Gardner Museum and made off with art valued at $500 million, including three Rembrandts, one of only 34 known paintings by Vermeer, and works by Manet and Degas. Because the eccentric Isabella insisted in her will that nothing be changed in the museum (nothing!), the empty frames remain on the walls as a sad reminder of what has been lost.
The 2,200 photographs by masters like Alfred Stieglitz, Edward Weston and Edward Steichen — more than could fit into an 18-wheeler — were paid for, court papers say, with some of the $78 million that the authorities say Mr. Rivkin got from defrauding oil companies like Shell, Exxon, and Mobil. Mr. Rivkin, who has not been charged with any crimes, was last thought to be in Spain and had arranged to have the photos shipped there.
Some of the 20th century’s most important creators set out to undermine ideas of unique, authentic, hand-touched works of art. Precisely 100 years ago, when Marcel Duchamp began presenting store-bought bicycle wheels, urinals and bottle racks as ready-made sculptures, he was also inviting others to buy and show similar masterworks. A half-century later, Andy Warhol was famously freewheeling when it came to notions of authenticity: You could never tell, and weren’t supposed to know, how much if any of a Warhol painting had actually been made by him versus by some acolyte in his art Factory. (In interviews, Warhol would sometimes attribute his works to others even when he’d executed them himself.) The art market can’t stand the slippages such ideas introduce, and insists on selling Warhols and Duchamps the way you’d sell a Lincoln autograph. Forgers, on the other hand, help preserve modern art’s productive uncertainty.
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.”
Art history is rife with high profile scams, such as that of Han van Meegeren, a disillusioned painter who developed a complicated system of baking his Old Master-style work to age it, and subsequently sold $60 million in fake Vermeers to world class museums and Nazi leader Hermann Göring during the late 1930s and early 1940s. (While current art historians are quick to slam his work as obviously inferior, Van Meegeren actually had to paint a “new” Vermeer at trial to prove he had not sold the Nazis a priceless original.)
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]
Stories of art and money laundering tend to be media friendly, and often involve the wealthy behaving poorly.  In one notorious case, the Department of Justice (“DOJ”) seized, via a civil forfeiture action, Jean Michel Basquiat’s 1981 painting, Hannibal. This work — later returned to Brazil by the DOJ — had been smuggled into the U.S. by Edemar Cid Ferreira, a former Brazilian banker who was convicted of money laundering and other offenses, and who allegedly converted some of his laundered proceeds into a significant art collection.  According to the DOJ, although Hannibal had been appraised at a value of $8 million, it had been smuggled by Ferreira into the U.S. from Brazil, via the Netherlands, with false shipping invoices stating that the contents of the shipment were worth $100.  Other stories provide less genteel tales of drug cartels, terrorist organizations and other criminal syndicates financing themselves through systemic looting and the illicit antiquities trade.
Despite having the means to own the original, one American multimillionaire has opted to hang a forged Renoir in his home while the real thing hangs prominently at a major museum. The man in question is not President Donald Trump, who recently made headlines with his claim of owning Renoir’s 1881 Two Sisters (On the Terrace), despite the painting being part of the Art Institute of Chicago’s permanent collection, but Henry Bloch, the Kansas City–based cofounder of tax preparation firm H&R Block.

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.”
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