* Get full names and contact information for all galleries or auction houses that the seller claims previously owned the art. If these galleries are still in business, contact them in order to confirm that the information provided by the seller is correct. If none of the galleries or auction houses are traceable, then this may be cause for concern.
The Art Business should examine the client’s background and purpose behind the contemplated transaction. For example, are the artworks being sold by the client consistent with what is known about the client’s collection? Is the level at which the client is selling or buying consistent with their past transactions and what is known about their professional activities and personal wealth? If not, the Art Business may want to ask the client for further information.
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).

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]
Once purchased, the art can disappear from view for years, even decades. A lot of the art bought at auctions goes to freeports – ultra-secure warehouses for the collections of millionaires and billionaires, ranging from Picassos and gold to vintage Ferraris and fine wine. The freeports, which exist in Switzerland, Luxembourg and Singapore, offer a variety of tax advantages because the goods stored in them are technically in transit. The Economist magazine reported that the freeport near the Geneva airport alone is thought to hold $100 billion (U.S.) of art.
A monumental sculptural forgery was a copy based on a Greek bronze statuette of a warrior of 470 bc, only five inches high and located in the Antikenabteilung, Berlin. The forgers made an eight-foot-high reproduction of it in terra-cotta and offered it as an Etruscan masterpiece. The resemblance was noted by the experts, who thought it to be an example of an Etruscan artist borrowing a Greek design motif. In 1961, after it had been in the Metropolitan Museum of Art in New York for 40 years, an analysis was made of the black glaze that covered the figure. It was found that the glaze contained as a colouring agent manganese, which never was used for this purpose in ancient times. Finally, Alfredo Adolfo Fioravanti confessed that he was the sole survivor of the three forgers.
Statistical analysis of digital images of paintings is a new method that has recently been used to detect forgeries. Using a technique called wavelet decomposition, a picture is broken down into a collection of more basic images called sub-bands. These sub-bands are analyzed to determine textures, assigning a frequency to each sub-band. The broad strokes of a surface such as a blue sky would show up as mostly low frequency sub-bands whereas the fine strokes in blades of grass would produce high-frequency sub-bands.[19] A group of 13 drawings attributed to Pieter Brueghel the Elder was tested using the wavelet decomposition method. Five of the drawings were known to be imitations. The analysis was able to correctly identify the five forged paintings. The method was also used on the painting Virgin and Child with Saints, created in the studios of Pietro Perugino. Historians have long suspected that Perugino painted only a portion of the work. The wavelet decomposition method indicated that at least four different artists had worked on the painting.
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."
These pesky forgers don’t limit their scams to painting, and are capable of turning their hands to many types of fakery. In the case of this set of six Louis XIV chairs—sold by highly-respected Parisian antiques dealer Kraemer Gallery to the Palace of Versailles itself—it emerged after the sale was made public that there just were not as many chairs in the court of Versailles as there are currently in circulation. The natural conclusion would be that some of the presumed authentic chairs must indeed be fakes.
Based on a real life, still unsolved art heist at the Isabella Stewart Gardner Museum in Boston, The Art Forger manages to include more details about brush strokes and forgery techniques than I knew existed in a gripping story of artistic obsession. Claire Roth is a struggling young artist, blacklisted by the art establishment for a perceived crime against one of their darlings. She pays her bills by copying famous works of art for an above board online retailer. Then she makes a devil's bargain ...more

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


Also the documents supposedly supporting the authenticity of the art were forged. According to the art fraud detective, the fraudulent art pieces looked like they had been purchased in a dollar store because they were so bad. When the police searched his one-room condo, some of the works still were wet with paint. At the time of his arrest, another buyer filed a complaint that the piece she purchased from him was a forgery (Moore, 2004).

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.
Art specialists with expertise in art authentication began to surface in the art world during the late 1850s. At that time they were usually historians or museum curators, writing books about paintings, sculpture, and other art forms. Communication among the different specialties was poor, and they often made mistakes when authenticating pieces. While many books and art catalogues were published prior to 1900, many were not widely circulated, and often did not contain information about contemporary artwork. In addition, specialists prior to the 1900s lacked many of the important technological means that experts use to authenticate art today. Traditionally, a work in an artist's "catalogue raisonné" has been key to confirming the authenticity, and thus value. Omission from an artist's catalogue raisonné indeed can prove fatal to any potential resale of a work, notwithstanding any proof the owner may offer to support authenticity.[20]
The history of the arts reveals instances of persons who have used forgery either to gain recognition of their own craftsmanship or to enjoy deceiving the critics who had rejected their genuine work. A legend told about Michelangelo illustrates this point. At the age of 21, he carved in marble a small sleeping Eros, or Cupid, based on ancient Roman works that he admired. Some time later this carving was sold as an antique to the well-known collector Cardinal Riario, who prized it highly. When Michelangelo stepped forward and claimed the work as his own he won immediate fame as a young man who could rival the work of the greatly venerated ancient sculptors.
For example, federal prosecutions have been successful using generalized criminal statutes, including the Racketeer Influenced and Corrupt Organizations Act ("RICO"). A successful RICO charge was brought against a family which had sold counterfeit prints purportedly by Chagall, Miró, and Dalí. The defendants were also found guilty of other federal crimes including conspiracy to defraud, money laundering, and postal fraud.[26] Federal prosecutors are also able to prosecute forgers using the federal wire fraud or mail fraud statutes where the defendants used such communications.

But to dealers and their clients, secrecy is a crucial element of the art market’s mystique and practice. The Art Dealers Association of America dismissed the idea that using art to launder money was even a problem. “The issue is not an industrywide problem and really does not pertain to us,” said Lily Mitchem Pearsall, the association’s spokeswoman.
Prosecution is also possible under state criminal laws, such as prohibitions against criminal fraud, or against the simulation of personal signatures. However, in order to trigger criminal liability under states' laws, the government must prove that the defendant had intent to defraud. The evidentiary burden, as in all criminal prosecutions, is high; proof "beyond a reasonable doubt" is required.[27]
The Nelson-Atkins Museum of Art uses a variation of the format suggested by The AAM Guide to Provenance Research (Washington, D.C., 2001). Provenance is listed in chronological order, beginning with the earliest known owner. Methods of transactions and relationships between owners, if known, are indicated at the beginning of each line. The term “With” precedes a dealer’s name to indicate their commercial status when the method of their acquisition is unknown. Life dates for private collectors are included in parentheses and dates of ownership, when known, are indicated at the end of each line. Uncertain information is preceded by the terms “possibly” or “probably.” Footnotes are used to document or clarify information.
* Get full names and contact information for all galleries or auction houses that the seller claims previously owned the art. If these galleries are still in business, contact them in order to confirm that the information provided by the seller is correct. If none of the galleries or auction houses are traceable, then this may be cause for concern.
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Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 
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.”
Motivations- check, he gives you that, details of specific works- check he gives you that, but I was hoping for some information on HOW they forge things, why, if they have that kind of talent do they not do their own (other than money, and of course risk), how they can tell (lightly touched on) that it was forged. This is a good overview book, but not detailed, not for someone who has huge curiosity about the field of art forgery. Start here, but if you are wondering more, keep looking.
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).
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!
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.”

The history of the arts reveals instances of persons who have used forgery either to gain recognition of their own craftsmanship or to enjoy deceiving the critics who had rejected their genuine work. A legend told about Michelangelo illustrates this point. At the age of 21, he carved in marble a small sleeping Eros, or Cupid, based on ancient Roman works that he admired. Some time later this carving was sold as an antique to the well-known collector Cardinal Riario, who prized it highly. When Michelangelo stepped forward and claimed the work as his own he won immediate fame as a young man who could rival the work of the greatly venerated ancient sculptors.
Ultraviolet rays readily reveal additions or alterations to a painting, since the varnish layers and some of the paint layers fluoresce to different colours. Ultraviolet is also used in the examination of marble sculpture. Old marble develops a surface that will fluoresce to a yellow-greenish colour, whereas a modern piece or an old surface recently recut will fluoresce to a bright violet. Infrared rays can penetrate thin paint layers in an oil painting to reveal underpainting that may disclose an earlier painting on the same canvas, or perhaps a signature that has been painted out and covered by a more profitable one. X rays are used to examine the internal structure of an object. A carved wooden Virgin supposedly of the 15th century but revealing modern machine-made nails deep inside is obviously a fraud. A forger usually works for the surface effect and is not concerned with the internal structures.
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.
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