The Anti-Money Laundering Act of 2020 brought art dealers under the umbrella of anti-money laundering regulation. Section 6110(a) of the AML Act amends the definition of “financial institution” under the Bank Secrecy Act (BSA) to include persons “engaged in the trade of antiquities” and directs FinCEN to promulgate implementing regulations.
The value of fine art and antiquities are inherently subjective and allow for a wide range of sale prices. The good stuff also weighs significantly less than cash. A painting worth $2.5 million is easier to transport than 275 pounds of $20 bills for the equivalent value. At the freeport in Geneva, you can sell the art without even moving it or paying taxes on the gain.
Now U.S. art dealers will have to file suspicious activities reports for cash transactions.
Into this fray steps Hunter Biden, the President’s son who is looking to sell some of his paintings.
“Everyone should try pushing brushes around. And if someone wants to pay you a half-million for the results: Cash that check.”
https://www.yahoo.com/entertainment/hunter-biden-art-worth-500-110000217.html
This raises the ethical issue of buying Hunter Biden’s artwork in an attempt to influence President Biden. According to the Washington Post story, the White House is trying to craft an ethical wall around the potential purchases to keep them anonymous. It’s a bad spot to have presidential family members selling art that is highly subjective in value into a market that is under scrutiny for anti-money laundering efforts.
The best answer is to just say “no.” Wait three (or seven) years to start selling the art after President Biden is out of office. It looks terrible to be trading on his father’s name and role as president.
Sources:
- Deal of the art: White House grapples with ethics of Hunter Biden’s pricey paintings
- Is Hunter Biden’s art worth $500,000? Here’s what a curator has to say
- How New Anti–Money Laundering Laws Will Affect Art Collectors
- The art world has a money laundering problem
- How Money Laundering Works In The Art World
- Art and Money Laundering
- FinCEN Informs Financial Institutions of Efforts Related to Trade in Antiquities and Art
