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.
Any art object—paintings, sculpture, jewelry, ceramics, fine furniture, and decorative pieces of all kinds—can be forged. The difficulty of forging, however, is as important as market price in determining what is forged. Probably fewer than 1 percent of stone sculptures are false because they require so much labour to make and their market is limited, but as many as 10 percent of modern French paintings on the market may be forgeries. The technical difficulties in making a convincing imitation of an ancient Greek vase are so great that forgeries are almost nonexistent. In contrast the forgery level of tiny archaic Greek and Cretan bronze statuettes, which are simple to cast, is possibly as high as 50 percent. A forger is most likely to succeed with a mediocre piece in the middle price range because such a piece probably will never be subjected to definitive examination. Although the price should be low enough to allay suspicion, the object can still yield a fair return for the effort expended by the forger.
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.
* 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.
Forgeries may be detected by the methods of examination formulated by Jean Mabillon, in his great work De re diplomatica (1681), for determining the authenticity of a document by the writing and the style of the terminology. These techniques have developed during three centuries into the modern sciences of paleography and diplomatics, by which various scripts and formulas can be assigned to particular ages and localities, and effective comparison can be made between two examples of handwriting purporting to come from the same pen. Thus it is possible to state that a particular document could not have been written at the date that it bears. In dealing with printed texts, analogous methods are employed.
While the detection of the careful forger may require an expert, forged literary autographs can often be detected by anyone taking the trouble to compare them with an authentic example. Many collectors have been deceived by their own credulity, because they wished to believe that they were getting a good bargain and subconsciously suppressed their critical faculty. A classic case is that of the French forger Vrain-Denis Lucas, who sold a collection of forgeries including a letter of St. Mary Magdalene, written in French on paper made in France.
Jack Flam suggested the paintings be sent for scientific testing to Jamie Martin, one of the world's top forensic art analysts. Martin showed us how he examined one of the fake Robert Motherwells using a stereomicroscope to study every millimeter of the painting's surface, and to select and then remove samples for identification. That's how he detected circular marks in the base layers, indicating an electric sander had been used to remove paint.
Recently, some countries in Europe, including Luxembourg and Switzerland, have passed laws to clamp down on money laundering in the art market. Starting in 2016, Switzerland will cap cash transactions at 100,000 Swiss francs ($135,000). Payments above that cash limit will have to be made by credit card, creating a paper trail, or the seller will have to carry out due diligence to ensure the legal origins of the funds.
Some criterion for judging the monetary value for all this art was needed, and the most readily available one was the identity of the artist. First, this took the form of mark on the work, and later a signature. As the demand for fine art far exceeded the supply, misuse of these marks and signatures became rampant. Controlling legislation was enacted as it always is whenever commerce enters the picture, and the formerly respected tradition of copying art became art forgery.
Interpol also tracks art smuggling. City police forces may have units that investigate cases of art fraud on the local level. But the first, and in many cases only, line of defense against art fraud is the dealers who offer the works for sale and the museums and collectors who must make every effort to determine the authenticity and legality of the works before purchase.
The cringeworthy part of the story is when the Times trots out the continuing battle between Yves Bouvier and Dimitry Rybolovlev to suggest malfeasance because Mr. Bouvier was allowed to sell a work for Mr. Rybolovlev but not pass the money through to his client. The joke here is that Rybolovlev, a Russian who lives in Monaco and banks in Cyprus while engaging is massive art deals and, separately, massive real estate deals, is a guy with the kind of profile that pops red flags in KYC reviews for more detailed review.
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.
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.
The Association of Certified Anti-Money Laundering Specialists (ACAMS) offers a professional designation known as a Certified Anti-Money Laundering Specialist (CAMS). Individuals who earn CAMS certification may work as brokerage compliance managers, Bank Secrecy Act officers, financial intelligence unit managers, surveillance analysts and financial crimes investigative analysts.
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.)
My predominant emotion while reading this book was irritation and I became much more interested in why it was irritating me so much than I was in the novel itself. I suppose principally because I thought it was going to be much more literary – a novel that creates the feeling that the characters are generating the plot rather than a novel whose plot creates the characters.
Law enforcement officials in the United States and abroad say “Hannibal” is just one of thousands of valuable artworks being used by criminals to hide illicit profits and illegally transfer assets around the globe. As other traditional money-laundering techniques have come under closer scrutiny, smugglers, drug traffickers, arms dealers and the like have increasingly turned to the famously opaque art market, officials say.
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.
In the late 20th century, art fraud was propelled by a rise in the popularity of art as an investment. With more collectors and museums vying for an ever-smaller number of works by noted artists or from esteemed eras in the history of art, motivations for fraud were exponentially increased. At the same time, modern science made it possible to authenticate works of art to a greater degree than at any time in the past, though even those scientific tests led at times to ambiguous results.