Four people, including a Saudi prince, were recently indicted on narcotics charges in Miami. The indictment cites one of the defendants with money laundering and seeks forfeiture of two works of art in connection with the deal. The oil paintings, seized by the U.S. in New York, are "Bandits attacking a coach" attributed to Francisco de Goya and "Buste de jeune" attributed to Tsuguharu Foujita. Both works are also known by other titles. The indictment charges one José Maria Clemente with financial transactions designed to conceal the source of illegal drug proceeds.

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.”


The dating of an object by the study of radioactive decay of carbon-14 has had little application in the detection of art forgery because of the large quantities of material that must be destroyed. Thermoluminescent dating is based on the slight damage to all matter, including clays, by the faint nuclear radiation present in the earth. Magnetic dating of ceramic objects is based on the slow but perceptible shift of the earth’s magnetic field over the centuries.
In recent weeks, the art world has been rocked by perhaps the biggest forgery scandal to hit the art world since Van Meegeren’s unmasking. The extent of the Old Master forgery ring is as of yet unknown, but Sotheby’s has already issued a refund to the buyer of a $10 million Frans Hals portrait, sold in 2011 in a private sale through London dealer Mark Weiss. James Martin’s Orion Analytical, a Williamstown, Massachusetts-based company which investigates artworks, found modern-day materials in the canvas, proving it to be a forgery.

Our current market, geared toward the ultra-wealthy, is helping few and hurting many. It stomps down all the emerging and midlevel dealers, artists, curators and even collectors who can’t play in the big-money game. It’s also hurting all the art lovers, current and future, who deserve work that’s conceived to address artistic issues, not to sell well to robber barons. If forgers can help burst our art bubble, blessings be upon them.

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.


Evidence of provenance in the more general sense can be of importance in archaeology. Fakes are not unknown, and finds are sometimes removed from the context in which they were found without documentation, reducing their value to science. Even when apparently discovered in situ, archaeological finds are treated with caution. The provenience of a find may not be properly represented by the context in which it was found (e.g. due to stratigraphic layers being disturbed by erosion, earthquakes, or ancient reconstruction or other disturbance at a site. Artifacts can also be moved through looting as well as trade, far from their place of origin and long before modern rediscovery. Further research is often required to establish the true provenance of a find, and what the relationship is between the exact provenience and the overall provenance.


The Internet has put a new spin on the old crime. The rise of online banking institutions, anonymous online payment services and peer-to-peer (P2P) transfers with mobile phones have made detecting the illegal transfer of money even more difficult. Moreover, the use of proxy servers and anonymizing software makes the third component of money laundering, integration, almost impossible to detect—money can be transferred or withdrawn leaving little or no trace of an IP address.
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."
The art world was quick to fall in line, with London’s National Gallery displaying the Gentileschi and the Pamigianino popping up at New York’s Metropolitan Museum of Art. At one point, the Louvre in Paris launched a fundraising campaign to buy the Hals, dubbing it a “national treasure” after it was authenticated by France’s Center for Research and Restoration.

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.


Art history, historical study of the visual arts, being concerned with identifying, classifying, describing, evaluating, interpreting, and understanding the art products and historic development of the fields of painting, sculpture, architecture, the decorative arts, drawing, printmaking, photography, interior design, etc. Art historical research has two primary concerns.…
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.
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.

Contact an art advisor to help you find a buyer for your work or see if an auction house like Sotheby’s or Christie’s wants to auction it for you. If they help you sell your collection, they will make money, so it’s in their best interest not to ask any questions. Make an appointment with an auction house to appraise the pieces in your collection. You’ll sign a contract that says you are allowing the auctioneers to sell your collection on consignment, which means if it sells you get paid, and if it doesn’t you get the art returned to you. It will also tell you what sort of fees you will be charged - like insurance, shipping, and the auction house’s cut. You’ll ship the work to the auction house, wait for your collection to be sold, and make it rain.


French artist Orlan sued American pop star Lady Gaga for forgery after the release of the 2011 hit video “Born This Way,” but ultimately lost her case. Orlan pointed out similarities to her piece Bumpload (1989), in which she added prosthetic ridges to her face, and Woman With Head (1996), which featured a decapitated head on a table. After losing her $31.7 million lawsuit, Orlan was ordered to pay the singer and her record label €20,000 ($22,000)
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.
Even as far back as ancient Rome, Mr. Nagel shows, it was considered utterly normal to copy the Greek statues of Praxiteles or Polyclitus, even while altering them. Patrons wanted access to the larger aesthetic ideas and ideals of their artistic geniuses; they didn’t think of works of art “as singularities, as unrepeatable performances by an author,” as Mr. Nagel puts it.

Contact an art advisor to help you find a buyer for your work or see if an auction house like Sotheby’s or Christie’s wants to auction it for you. If they help you sell your collection, they will make money, so it’s in their best interest not to ask any questions. Make an appointment with an auction house to appraise the pieces in your collection. You’ll sign a contract that says you are allowing the auctioneers to sell your collection on consignment, which means if it sells you get paid, and if it doesn’t you get the art returned to you. It will also tell you what sort of fees you will be charged - like insurance, shipping, and the auction house’s cut. You’ll ship the work to the auction house, wait for your collection to be sold, and make it rain.
Sack discussed transferring the proceeds from the resale to an offshore account, the agent's affidavit says, and the dealers explained that the buyer would see a net loss in funds. When the undercover agent mentioned normally paying "10% to 15%" to launder money, Katzen said the works could easily be sold at a 10% discount, the affidavit says. Katzen said he would move the money very, very slowly, the affidavit says, and told the agent he had a client in Europe who was ready to buy the Modigliani "under these circumstances."
* 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.
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.
Stylistic analysis is subjective: it rests on the astute eye of the art historian. Each artist has a style, a flair, a verve unique to himself, and this can be recognized. His style will undergo change throughout his career, and this, too, can be stylistically analyzed and documented from his known works. When an unknown work purporting to be by a certain artist is discovered, the art historian attempts to fit it into the overall body of works by this artist. The subject matter, the brushwork, the choice of colours, and the type of composition are all consistent elements in a given artist’s production. Any variation immediately arouses suspicion. When the idiosyncrasies of an artist’s brushwork are studied, a fraud can sometimes be detected in much the same way a handwriting forgery is proven. In ancient works, particularly in antiquities, the scholar must examine the iconography of a piece. Forgers rarely have the scholarly background to combine iconographic elements correctly, and their errors often betray them.
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.
However, even this careful process can be faked by those knowledgeable enough. In our collector's reading list, we feature a book called Provenance that examines how two people were able to sell forged art at the highest levels. Their documentation for the inauthentic pieces they sold was so expertly faked that more obvious flaws in the pieces themselves were overlooked.

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.

Even though De Sole was appointed chairman of Sotheby’s in 2015 and, presumably, is art-savvy, Clarick points out that his being scammed speaks volumes. “To me,” says Clarick, “it says that the works were pretty good-looking and conveys the impeccable reputation that Knoedler and Ann Freedman had. People believed them. You don’t buy a really fancy diamond from Tiffany and have it checked out on 47th Street.”

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