Partner Megan Noh was interviewed by Forbes for a recent article titled, "The FBI Thinks You’re A Money Launderer, And Other Perils Of Art Collecting," where she discussed the implications of the proposed "COUNTER Act" in the United States, which was sent by the House to the Senate in late 2019.
According to Forbes editor Barden Prisant, "the COUNTER Act focuses more on the illegal trade of antiquities than art, but if its language stressing the potential link between 'facilitation of money laundering and terror finance through the trade of works of art' is any indication, its remit may expand to include the $30 billion/year U.S. trade in paintings, drawings, prints, etc."
Noh noted that "the information being sought by these regulations—e.g., reporting on money changing hands and the identity of the ultimate parties to the transaction—is information that art market participants may well be loath to divulge. Many collectors are justifiably concerned about privacy and security.”
She explained that, "(w)hile in the vast majority of cases, complex parent-subsidiary relationships and offshore incorporation jurisdictions are employed appropriately to effect limitations on liability or tax benefits, regulation aimed at exposing illegal actions by a few ‘bad apples’ would disadvantage collectors seeking to protect the confidentiality of their corporate organization structures.”
The full article is available here.
About Pryor Cashman's Art Law Group
Representing collectors, dealers, galleries, artists, museums and auction houses, Pryor Cashman’s Art Law Group serves as a trusted advisor to clients and defenders of their treasured assets. Our team of experienced litigators has handled some of the most well-known cases involving stolen art, Holocaust art restitution, and forged and infringed art. We also counsel clients on ways to optimize their investments and defend their interests over the course of complex transactions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.