The fact that experts do not always agree on the authenticity of a particular item makes the matter of provenance more complex. Some artists have even accepted copies as their own work - Picasso once said that he "would sign a very good forgery".[citation needed] Camille Corot painted more than 700 works, but also signed copies made by others in his name, because he felt honored to be copied. Occasionally work that has previously been declared a forgery is later accepted as genuine; Vermeer's Young Woman Seated at the Virginals[21] had been regarded as a forgery from 1947 until March 2004, when it was finally declared genuine, although some experts still disagree.[22]
Fine examples of pottery and porcelain have always commanded high prices, which have, in turn, encouraged the making of forgeries and reproductions. Since many European factories tried to imitate Italian majolica during the 19th century when it was especially popular, forgeries are common. The work of Urbino, Castel Durante, Faenza, and Gubbio was copied freely, and, to a lesser extent, so were the wares of Orvieto and Florence. Most of these forgeries are not close enough to deceive a reasonably expert eye. Potters used natural deposits the impurities of which, for good or ill, often affected the final result; until recently it has been impossible to procure materials in a pure state. In all but a few isolated instances (some German stoneware reproductions, for example) the forger no longer has access to these original deposits and he has to imitate the effect of the impurities as best he can. Although the best forgeries are often remarkably close to the originals, they are not very numerous.
Less clear is whether the standards that exist in the art world about what should be included in the provenance are followed with any regularity or even can be followed as a practical matter. While theoretically intended to be a “chain of title” that should include every owner of the work since its creation, provenance typically tends to be a non-exclusive listing of interesting facts concerning the background of the work, such as notable former owners (at least those who are willing to have their identities disclosed) and the exhibition of the work at prestigious venues. Should galleries which held the work on consignment be listed? Does a seller have potential liability if the provenance provided to the buyer turns out to be inaccurate in any material respect? What if it is merely incomplete?
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.
Price fluidity is one of the key advantages of using artwork for money laundering. Coupled with a lack of a regulatory body authorized to oversee the value of art, pricing art is effectively a free-for-all. For example, after 9/11, Americans yearned for nostalgia, including Norman Rockwell paintings. Some of his folksy paintings tripled in value — from $15 million in 2006 to $45 million seven years later.

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).
“Deaccessioning” is defined as the process by which an artwork (or other object) is permanently removed from a museum’s collection. Proceeds received from the sale of deaccessioned artworks must be used by art museums for the acquisition of other artworks. As such, U.S. and international professional organizations have long upheld the role of deaccessioning as vital to the care of collections. Some nationally funded museums do not allow deaccessioning under any circumstances, and internationally it is not as prevalent as it is in America, where many museums are privately funded. The Toledo Museum of Art respects that there are different points of view, but American art museums have upheld the practice of judiciously managing collections.
The United States passed the Banking Secrecy Act in 1970, requiring financial institutions to report certain transactions to the Department of the Treasury, such as cash transactions above $10,000 or any others they deem suspicious, on a suspicious activity report (SAR). The information the banks provide to the Treasury Department is used by the Financial Crimes Enforcement Network (FinCEN), which can share it with domestic criminal investigators, international bodies or foreign financial intelligence units.
This painting, known as “Hannibal” after a word scribbled on its surface, was brought into the United States in 2007 as part of a Brazilian embezzler’s elaborate effort to launder money, the authorities say. It was later seized at a Manhattan warehouse by federal investigators who are now preparing to return it to Brazil at the behest of law enforcement officials there.
At times restoration of a piece is so extensive that the original is essentially replaced when new materials are used to supplement older ones. An art restorer may also add or remove details on a painting, in an attempt to make the painting more saleable on the contemporary art market. This, however, is not a modern phenomenon - historical painters often "retouched" other artist's works by repainting some of the background or details.

Edward Winkleman tells us that “transfer of title for digital art happens with an invoice. The collector generally receives a certificate of authenticity, which is required if they ever want to resell or donate the work to a museum. The artwork could indeed be delivered digitally, and payment could indeed be received digitally, but the bank records will show the transaction.”
The paintings were sent "in respect to a money-laundering transaction," which was "related to this drug deal," she clarified, adding that "it was the money-laundering debt that Clemente was repaying." The U.S. Drug Enforcement Administration believes that oil paintings are "a way in which drug dealers launder money. It is an investment for their drug transaction proceeds," she said.

Many forgeries still escape detection; Han van Meegeren, possibly the most famous forger of the 20th century, used historical canvasses for his Vermeer forgeries and created his own pigments to ensure that they were authentic. He confessed to creating the forgeries only after he was charged with treason, an offense which carried the death penalty. So masterful were his forgeries that van Meegeren was forced to create another "Vermeer" while under police guard, to prove himself innocent of the treason charges.
Governments around the world have stepped up their efforts to combat money laundering in recent decades, with regulations that require financial institutions to put systems in place to detect and report suspicious activity. The amount of money involved is substantial: According to a 2018 survey from PwC, global money laundering transactions account for roughly $1 trillion to $2 trillion annually, or some 2% to 5% of global GDP .
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.
Jack Flam took his information to the FBI's Art Crimes unit, which launched an investigation. In 2013, Glafira Rosales confessed to playing a key role in the multimillion dollar fraud. She is now awaiting sentencing, and told the FBI the forgeries were the handiwork of this man: Pei-Shen Qian, an artist who lived in Queens and painted the works in his garage.
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.
Sylvia Dugan I started reading it, but found the main character to be too shallow and not very believable. I finally decided to stop reading it after the first 50+…moreI started reading it, but found the main character to be too shallow and not very believable. I finally decided to stop reading it after the first 50+ pages, too many other good books to read.(less)
“The tax laws in art make it basically legal to not pay taxes on art. If you’re a serious art buyer, you just get a good tax accountant,” former New York-based art consultant Beth Fiore tells Hopes&Fears. “If you show newly purchased works in certain museums then you never have to pay taxes on it.” Edward Winkleman of Winkleman Gallery maintains that his gallery keeps fastidious records of all transactions and pays taxes even on cash sales. But he admits that, “the state generally wouldn't question what is reported.” He also tells us that individual sales don’t need to be reported, only the totals for each quarter. Hypothetically, someone could buy millions of dollars worth of art without the IRS knowing, and then later sell those works for a “legitimate” profit that looks clean on taxes.
The indictment says that Sack and Katzen promoted themselves as fine art dealers who were "capable of selling various works of art to be paid for in cash, as a way to launder money earned through illegal drug trafficking. The pair "offered to resell overseas any works of art first sold by them," the indictment says. One of the acts alleged as part of the conspiracy was the purchase of a cash-counting machine to sort out any counterfeit bills from the millions the pair expected to receive, the indictment says. The conspiracy took place in New York, Connecticut and Massachusetts, the U.S. says.
The provenance is listed in chronological order, beginning with the earliest known owner. Life dates of owners, if known, are enclosed in brackets. Uncertain information is indicated by the terms “possibly” or “probably” and explained in footnotes. Dealers, auction houses, or agents are enclosed in parentheses to distinguish them from private owners. Relationships between owners and methods of transactions are indicated in the text and clarified through punctuation: a semicolon is used to indicate that the work passed directly between two owners (including dealers, auction houses, or agents), and a period is used to separate two owners (including dealers auction houses or agents) if a direct transfer did not occur or is not known to have occurred. Footnotes are used to document or clarify information.
Speaking on the sidelines of the Art Business Conference, Pierre Valentin, head of the art law practice at London law firm Constantine Cannon, said laundering illicit funds through the art market was seductive because purchases at auctions "can be anonymous and it's a moveable asset. You can put the art on a private plane and take it anywhere. Plus there is no registration system for art."
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).
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]
As for you artists, firmly establishing yourself as link number one in the chain of provenance is essential. These days, proof of authenticity or authorship accompanying a work of art is more important than ever. In order to prevent unscrupulous sellers from trafficking in fakes, and avoid situations where people question your art, keep good records right from the start and provide some form of documentation with every artwork you produce. The last thing you want is people trying to figure out whether or not you actually created certain works, or contacting you with requests to authenticate works that have no accompanying paperwork or documentation. The bad news is that in the long run, repeated incidents surrounding undocumented art can actually compromise your market. So make sure there's never any doubt that ownership of your art begins with you. Read more about how to do that in this article about How to Authenticate Your Art.
* 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 provenance is listed in chronological order, beginning with the earliest known owner. Life dates of owners, if known, are enclosed in brackets. Uncertain information is indicated by the terms “possibly” or “probably” and explained in footnotes. Dealers, auction houses, or agents are enclosed in parentheses to distinguish them from private owners. Relationships between owners and methods of transactions are indicated in the text and clarified through punctuation: a semicolon is used to indicate that the work passed directly between two owners (including dealers, auction houses, or agents), and a period is used to separate two owners (including dealers auction houses or agents) if a direct transfer did not occur or is not known to have occurred. Footnotes are used to document or clarify information.
Conservation issues of Pompeii and Herculaneum Conservation-restoration of Ecce Homo by Elías García Martínez Conservation-restoration of The Gross Clinic by Thomas Eakins Conservation-restoration of Leonardo da Vinci's The Last Supper Conservation-restoration of the Shroud of Turin Conservation-restoration of the Sistine Chapel frescoes Conservation-restoration of the Statue of Liberty Conservation-restoration of the H.L. Hunley Modern and Contemporary Art Research Initiative
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.
There are no accepted estimates on the amounts of money laundered through the art market, although the general belief is that it is enormous and expanding as regulations on other asset classes, from real estate to foreign exchange, tighten up everywhere. The International Monetary Fund estimated that "the amount available for laundering through the financial system" was worth 2.7 per cent of global gross domestic product in 2009 or $1.6-trillion (U.S.).
“Deaccessioning” is defined as the process by which an artwork (or other object) is permanently removed from a museum’s collection. Proceeds received from the sale of deaccessioned artworks must be used by art museums for the acquisition of other artworks. As such, U.S. and international professional organizations have long upheld the role of deaccessioning as vital to the care of collections. Some nationally funded museums do not allow deaccessioning under any circumstances, and internationally it is not as prevalent as it is in America, where many museums are privately funded. The Toledo Museum of Art respects that there are different points of view, but American art museums have upheld the practice of judiciously managing collections.
To combat these problems The Authentication in Art Foundation was established in 2012 by experts from different fields involved with the authenticity of art. The aim of the foundation is to bring together experts from different specialities to combat art forgery. Among its members are noted experts such as David Bomford, Martin Kemp, and Mauricio Seracini.[24]

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.”
James Martin’s expert report shows the signatures from four Knoedler paintings that were purported Jackson Pollocks. The top two signatures are quite similar. The bottom right signature shows signs that the name was first traced onto the canvas using a sharp tool, and is very similar to the signature on the bottom left, which is misspelled “Pollok.” Courtesy of James Martin.

To sum up, the Times muddles the very different issues of ensuring the integrity of works of art—the authenticity question—which is real and requires an entity that can work with owners who want to maintain their anonymity for legitimate reasons with the issue of beneficial ownership—which is less pressing with art because it is relatively rare and covered by the parallel system of KYC run by the banks the auction houses rely upon to vouch for their clients’ ability to afford the works they want to buy.

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.”
For museums and the art trade provenance has increasingly important, not just in the older way where establishing the authorship and authenticity of an object was the main concern, but in establishing the moral and legal validity of its chain of custody, given the increasing amount of looted art. This first became a major concern regarding works that had changed hands in Nazi-controlled areas in Europe before and during World War II. Many museums began compiling pre-active registers of such works and their history. Recently the same concerns have come to prominence for works of African art, often exported illegally, and antiquities from many parts of the world, but currently especially in Iraq, and then Syria.[2]
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.
The second essay (Purchase Price Paid Over Time: “Title Does Not Pass Until Payment in Full”) addresses a very common provision in contracts for the sale of art with installment payments. But, surprising to many art sellers, the Uniform Commercial Code probably makes this provision unenforceable, with consequences for the seller getting his art back.
According to former art consultant Beth Fiore, people don’t normally buy art with cash in the US; “Cash payments for art happen in Russia [and the] Middle East” more often. So if you’re keeping your fortune under your mattress and don’t live in either of those places, you’ll need to get your money into a bank account without alerting the authorities. One way to do that is by smurfing. Despite the mental image of a blue cartoon character riding a surfboard that you may have conjured, smurfing means depositing money into a bank account or several bank accounts by breaking it up in to many small amounts that are deposited at different times, by different people. US banks must report any deposits over $10,000 to the IRS, so in order to stay sneaky, you’ll need to make a series of deposits that are less than that amount. You can hire “smurfs” to help you, who are often ordinary people willing to make an extra buck by opening up a joint bank account in their name, that you or your company has access to, and depositing money into it every day.
The most common type of fraudulence in art is forgery—making a work or offering one for sale with the intent to defraud, usually by falsely attributing it to an artist whose works command high prices. Other fraudulent practices include plagiarism, the false presentation of another’s work as one’s own, and piracy, the unauthorized use of someone else’s work, such as the publication of a book without permission of the author; both practices are generally in violation of copyright laws.
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.
Despite those advances, the detection of fraudulent art remains a complex undertaking. It is particularly difficult to weed out forgeries in the work of modern artists whose large numbers of works and superstar statuses make them especially attractive to those who commit fraud. Pablo Picasso, for example, was a prolific artist, creating a huge number of works on canvas and on paper as well as sculptures and ceramics. Considering his vast output and the varying styles and media in which he worked, scholars have had difficulty establishing a definitive corpus for him. The prestige associated with owning a Picasso and the difficulty of attribution, especially for a drawing, made and continues to make fraudulent representations of his work hard to police.
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