Am I affected by money laundering rules? – Sophie Wood writes for the Financial Times

In the Q&A section of the Financial Times, Sophie Wood, a Senior Associate in our Criminal Litigation team, answered questions on how artists are affected by new anti-money laundering regulations and what they need to do to be compliant.

In the article Sophie explained that the EU’s fifth anti-money laundering directive (AMLD5), which came into force in January 2020, applies to art market participants (AMPs). AMPs include artists who ‘by way of business trades in . . . the sale or purchase of, works of art and the value of the transaction, or a series of linked transactions, amounts to €10,000 or more’.

This means for artists selling work which meets this threshold, they need to:

• Register with HMRC;
• Conduct due diligence;
• Document risk assessments, policies, controls and procedures; and
• Recognise their obligations as a nominated officer.

While the requirements might seem onerous, it will probably be much more straightforward than it initially appears, forming a relatively small addition to your everyday operations. If you want to learn more, there are various training courses available to help AMPs understand their new obligations, including a free programme by Creative United."

This Q&A appeared in the Financial Times on 8 April 2021 and you can read the full response by clicking here. 

Further information

For further information on the issues raised in this news article, please contact a member of our criminal litigation team.

About the author

Sophie Wood is a Senior Associate in our Criminal Litigation team with extensive experience in advising corporate and individual clients involved in a wide range of internal, criminal and regulatory investigations and public inquiries. Sophie has worked on large-scale and complex cases of serious fraud and money laundering brought by the SFO, US DoJ, FCA and HMRC. A number of these cases have had multi-jurisdictional aspects, encompassing requests for Mutual Legal Assistance, INTERPOL red notices and extradition. Sophie also advises on POCA 2002 and, in particular, individuals impacted by restraint and confiscation proceedings.