When addressing the KYC procedures under Guideline 3, the AML Guidelines explain that establishing a client’s risk profile will require an art business to obtain information on the client; understand the purpose and intended nature of the transaction; and understand the client’s source of wealth and how they acquired their art collection.  The AML Guidelines also stress the need to identify beneficial ownership, “even if the contracting client raises confidentiality concerns,” and note that the art business “may also choose to include appropriate warranties and representations in their agreements with their clients to emphasise the importance of this point.”  Further, art businesses should peform due diligence on intermediaries, such as art advisors or brokers, acting for one of the parties to a transaction.
Art scammers have one objective and that is to separate the artist from their art or from their money, or both.  When approached by a stranger on the Internet, always be aware of and skeptical of phony emails and solicitations.  The old adage that says “when it sounds too good to be true…” still stands true today.  All artists should be aware of and comfortable with whom they are dealing with when they are selling their art on the Internet.
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 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.”

Ken Dreifach, head of the Internet Bureau at the New York State Attorney General's office, reported the reoccurring sales of a forged painting. An individual purchased a painting from the Art and Design Center of New York City and brought it to an art expert for appraisal who determined the work was a forgery. The Art and Design Center refunded the money to the purchaser but then sold it to another individual. That person also had it evaluated by an expert who said it was a fake. The Center refunded the money to the second purchaser. Then an undercover investigator from the attorney general's office bought the same painting and the jig was up. The attorney general filed charges and the case was settled against the Center for various monetary charges (Department of Law, 2001).

John (American, 1777-1851) and Hugh (American, 1781-1830) Finlay, Card Tables in the Neo-Classical Taste, c. 1825, Mahogany, maple, pine, and poplar, painted and paint-grained rosewood, and gilded, with gilt-brass toe caps and castors and die-stamped rosettes, and red velvet in the wells, 28 7/8 x 35 7/8 x 17 ¾ in. (73.34 x 91.12 x 45.09 cm), Mr. and Mrs. Robert J. Barber Art Fund, 2016.3-.4.
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.

Good solid provenance almost always increases the value and desirability of a work of art because, first and foremost, it authenticates the art. Good provenance also provides important information about and insight into a work of art's history. Unscrupulous sellers know the value of provenance and sometimes go to great lengths to manufacture or fabricate phony provenance for their art. The good news is that phony provenance is relatively easy to detect in most cases. The following guidelines will help protect you from buying art with fake or questionable provenance:
In paleontology and paleoanthropology, it is recognized that fossils can also move from their primary context and are sometimes found, apparently in-situ, in deposits to which they do not belong because they have been moved, for example, by the erosion of nearby but different outcrops. It is unclear how strictly paleontology maintains the provenience and provenance distinction. For example, a short glossary at a website (primarily aimed at young students) of the American Museum of Natural History treats the terms as synonymous,[27] while scholarly paleontology works make frequent use of provenience in the same precise sense as used in archaeology and paleoanthropology.
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.
The innocuous nature of these copies gets overshadowed by the explosive scandals that do rock the art world from time to time. Recent headlines include the Modigliani exhibition in Genoa, which was shut down this summer after 30 percent of the paintings were alleged to be forgeries, and the Sotheby’s $10.6 million sale of a fake Frans Hals a year ago. Legally, Lowy clients are formally required to acknowledge that the piece it is a copy and will not be used unlawfully, but just in case, the firm’s contract indemnifies the company against any potential wrongdoing. “There is certainly fraudulent behavior out there,” says co-owner Brad Shar. “We wanted to make sure that we were legally protected.”
The layout of the book is unconventional, but the material itself is fascinating. This, like the recent movie "Big Eyes" and the works of contemporary artists like Banksy and Koons stimulates the age-old debate of what art "is". Aristotle's definition (pg. 108) seems amazingly accurate over 2,000 years later. Because so much is covered in such a brief manner, it certainly will lead me to more detailed books and primary sources amply provided in Charney's "Selected Bibliography." I find the effects of mass psychology (the willingness to be fooled that greed begets), institutional jealousies, the arrogance of the "connoisseur" class, and the exclusivity of gallerists - all fascinating - and all ample motivation for the revenge of the forgers.
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.
Copies, replicas, reproductions and pastiches are often legitimate works, and the distinction between a legitimate reproduction and deliberate forgery is blurred. For example, Guy Hain used original molds to reproduce several of Auguste Rodin's sculptures. However, when Hain then signed the reproductions with the name of Rodin's original foundry, the works became deliberate forgeries.
Claire Roth is an artist that has been involved in an art work scandal and has found herself blackballed in the artistic world. She is forced into reproducing famous paintings to make a living.This career choice gives her an opportunity to salvage her reputation when she is offered the chance to copy a stolen Degas painting. The story also intertwines the story of the founding of the Isabella Stewart Gardner Museum in Boston and the place ...more
From 1994 until 2009, Knoedler & Co. admittedly — but, the claim goes, unknowingly — sold 31 other bogus paintings. Through those sales, the gallery raked in some $80 million. Luke Nikas, Freedman’s lawyer, says that she earned $10- to $12-million between 1994 and 2008. Moguls and megalevel tastemakers all thought they were buying works by such abstract expressionist blue-chippers as Jackson Pollock, Robert Motherwell and Willem de Kooning.
No forgery to attain recognition is better known than the “Thomas Rowley” poems of Thomas Chatterton (1752–70), which the youthful author attempted to pass off as the work of a medieval cleric. These poems, which caused a scholarly feud for many years, were influential in the Gothic revival. Chatterton, however, enjoys a place in English letters as a creative genius in his own right. The more conventional forger William Henry Ireland (1777–1835) cheerfully manufactured Shakespearean documents until his forged “lost” tragedy Vortigern and Rowena was laughed off the stage at the Drury Lane Theatre, London, in 1796. More fortunate was Charles Bertram, who produced an account of Roman Britain by “Richard of Westminster,” an imaginary monk. Bertram’s dupe, the eccentric antiquary Dr. William Stukeley, identified the monk with the chronicler Richard of Cirencester, known to have resided at Westminster in the 14th century. Bertram’s forgery (cunningly published in a volume containing the works of two genuine ancient authors, Gildas and Nennius) had an enormous influence upon historians of Roman Britain, lasting into the 20th century. Equally influential were the Ossianic poems of James Macpherson (1736–96), which influenced the early period of the Romantic movement. To what degree Macpherson’s poems are to be regarded as spurious is not certain. Denounced in his own day they were possibly, as he claimed, based upon a genuine oral tradition of Scottish Gaelic poetry; but there can be little doubt that they were carefully edited and interpolated by their collector.
“It’s a useful resource for museums, auction houses, and dealers primarily that need to ply a particular artwork out of a collection,” says Brad Shar, whose New York–based firm Lowy works with both institutions and individual collectors to create reproductions. “The possibility of having an exact copy to fill a wall space is a powerful incentive a lot of the time.”
In the early 2000s, Brazilian financier Edmar Cid Ferreira had embezzled funds from his business empire — and he needed a way to hide the money. He found it in Hannibal, a painting by American artist Jean-Michel Basquiat. Appraised by the art world at $8 million, Ferreira showed up at New York’s Kennedy Airport in 2007 with the painting and a bill of lading listing the value as $100.
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:
Wolfgang Beltracchi is a name you may never have heard before.  Very few people have. But his paintings have brought him millions and millions of dollars in a career that spanned nearly 40 years. They have made their way into museums, galleries, and private collections all over the world.  What makes him a story for us is that all his paintings are fakes. And what makes him an unusual forger is that he didn’t copy the paintings of great artists, but created new works which he imagined the artist might have painted or which might have gotten lost. Connoisseurs and dealers acknowledge that Beltracchi is the most successful art forger of our time -- perhaps of all time. Brilliant not only as a painter, but as a conman of epic proportions.  
Wolfgang Beltracchi is a name you may never have heard before.  Very few people have. But his paintings have brought him millions and millions of dollars in a career that spanned nearly 40 years. They have made their way into museums, galleries, and private collections all over the world.  What makes him a story for us is that all his paintings are fakes. And what makes him an unusual forger is that he didn’t copy the paintings of great artists, but created new works which he imagined the artist might have painted or which might have gotten lost. Connoisseurs and dealers acknowledge that Beltracchi is the most successful art forger of our time -- perhaps of all time. Brilliant not only as a painter, but as a conman of epic proportions.  
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?
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.

“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.”
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.
This scam works for the scammer because the transaction will take time due to the distance involved for both parties.  To the unwary artist, the credit card transaction will go through, the art is shipped, only for the artist to find out later that credit card number was stolen and or that the check was no good and that the artist will not be receiving their funds.  Then as a consequence of all this, the artist is out of their art and the costs involved, plus the cost of the shipping. 
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]
Copies, replicas, reproductions and pastiches are often legitimate works, and the distinction between a legitimate reproduction and deliberate forgery is blurred. For example, Guy Hain used original molds to reproduce several of Auguste Rodin's sculptures. However, when Hain then signed the reproductions with the name of Rodin's original foundry, the works became deliberate forgeries.
Sometimes, they give us works that great artists simply didn’t get around to making. If a fake is good enough to fool experts, then it’s good enough to give the rest of us pleasure, even insight. The late Swiss collector Ernst Beyeler called a fake Rothko from Queens a “sublime unknown masterwork” in 2005 and hung it in his namesake museum. Why not think of that picture as the sublime masterwork that Rothko happened not to have got around to? Is it a bad thing if thousands more people in China get to own works by the great modern master Qi Baishi — even if the works they own aren’t actually by him? In some ways, they are by him, in the profound sense that they almost perfectly capture his unique contribution to art. If they didn’t, no one would imagine he’d made them.
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.
A variation in composite forgery, quite common with inlaid French furniture, involves the use of parts from damaged but genuine pieces to create a single complete piece that may or may not resemble one of the pieces from which it has been made. These made-up pieces are still considered forgeries. In composites of archaeological material only one part may be ancient, the balance being made up to complete the object. The head of a small terra-cotta figure may be ancient, the body and limbs of modern workmanship. A single ancient element in a composite forgery will help to deceive the buyer.
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.”
Sometimes, they give us works that great artists simply didn’t get around to making. If a fake is good enough to fool experts, then it’s good enough to give the rest of us pleasure, even insight. The late Swiss collector Ernst Beyeler called a fake Rothko from Queens a “sublime unknown masterwork” in 2005 and hung it in his namesake museum. Why not think of that picture as the sublime masterwork that Rothko happened not to have got around to? Is it a bad thing if thousands more people in China get to own works by the great modern master Qi Baishi — even if the works they own aren’t actually by him? In some ways, they are by him, in the profound sense that they almost perfectly capture his unique contribution to art. If they didn’t, no one would imagine he’d made them.

In the movie-funding case, the scheme involved several participants, 10 countries, mislabeling transactions as “gifts” and “donations,” disguising the origins of the funds, and offshore shell companies. One letter stated that a transfer of $800 million from a Saudi prince to Razak was a “donation.” The head of the criminal operation used correspondent banks to transfer the funds in dollars.
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.
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.
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.

During the 16th century, imitators of Albrecht Dürer's style of printmaking added signatures to them to increase the value of their prints. In his engraving of the Virgin, Dürer added the inscription "Be cursed, plunderers and imitators of the work and talent of others".[1] Even extremely famous artists created forgeries. In 1496, Michelangelo created a sleeping Cupid figure and treated it with acidic earth to cause it to appear ancient. He then sold it to a dealer, Baldassare del Milanese, who in turn sold it to Cardinal Riario of San Giorgio who later learned of the fraud and demanded his money back. However, Michelangelo was permitted to keep his share of the money.[2][3]
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