Britain Moves to Regulate Its Art Trade. Bring Your ID.

Martin Wilson, the chief legal counsel at the auction house Phillips, said, “At the heart of the new legislation is a requirement that art market participants must carry out due diligence in relation to the identity of their customers and be able to answer the important question, ‘Who am I really dealing with?’”

Mr. Low (who is said to be in hiding) was a well-known figure, but hundreds of British dealers regularly do business with intermediaries whose livelihoods depend on not revealing the identity of an artwork’s “ultimate beneficial owner.” The legislation could make art advisers in the United States, who are currently not subject to such industrywide regulation, more reluctant to transact with British galleries.

Art traders in Britain have also expressed concern that a requirement to reveal the identity of a third party could affect smaller participants. “A dealer might represent one really good collector, and if the name has to be revealed, that collector could be could be taken by a bigger dealer,” said Nicholas Maclean, a partner at Eykyn Maclean, a dealership based in London and New York.

There are also practical implications for auction houses and dealers in administering the new legislation.

“It’s going to add 30 minutes to an hour of work every day,” said Alon Zakaim, a gallerist in modern and contemporary art based in Mayfair, central London. Mr. Zakaim added that he was nervous about having to comply with the legislation when he takes part in the European Fine Art Fair, or TEFAF, in the Netherlands in March.

“If I don’t know someone, I’m going to have to ask them all these questions,” he said. “They could well feel it’s an invasion of privacy,” he added. “I could lose a client.”

Article source: https://www.nytimes.com/2020/01/10/arts/design/uk-art-money-laundering.html?emc=rss&partner=rss