How Money Laundering Works In The Art World|ManualTrader

How Money Laundering Works In The Art World

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One of the biggest advantages of the art trade is its price fluidity. Because there is no regulatory body, prices can change very quickly. An example of this is the sale of a Norman Rockwell painting, which tripled in value in 2006 and 2007 after the 9/11 terrorist attacks. In addition, money launderers' methods are extremely sophisticated, often involving multiple transactions, a number of different countries, and various methods to hide the source of funds.

There are several reasons why artworks have such functions:

First, the main reason is that it can be traded anonymously.

Many experts believe that art is the largest, legal, and unregulated high-risk money laundering industry in the United States, because art transactions often do not have any transaction records and involve a very large amount of funds. Although the EU has some strict rules on art transactions Regulations, but the United States does not have them at all!

Second, the art market is completely unregulated.

It has no specific supervision unit at all, unlike Taiwan's financial management committee! In particular, his sales are usually carried out through art consultants on behalf of the buyer and the seller, and you can't ask the other party's identity or where the money comes from. Even if you ask, the art consultant will not tell you, so it creates a serious loophole in money laundering prevention...

Third, its trading volume is stable.

According to statistics, even during this year's epidemic, the trading volume of the art market will not be affected at all.

For example, what should I do if I want to make a fortune from the art market?

First of all, you have to buy out a work by an artist that you are optimistic about at a low price, and then in the next few years, you will cooperate with well-known dealers, through the establishment of a subsidiary company, and constantly buy it yourself in the auction house. Sell ​​it by yourself, increase the artist's popularity and the price of his works, and when the time is right, you can make a lot of money.

The most famous example is the famous British artist Damien hirst, who just graduated from society and was attracted by traders.

He bought out his works at a price of between 60,000 and 90,000 US dollars. After ten years of buying and selling by himself, his works were sold to 12 million US dollars by dealers, which directly increased the value by more than 100 times!

The art industry is a major target for money launderers. The process is easy and anonymous, which makes it an attractive target for criminals. However, regulations for the art world have not been strict enough. Nevertheless, compliance with the law is the best way to avoid money laundering in the art world. Furthermore, the regulations also propose Know Your Customer procedures that oblige institutions to identify customers. These procedures help institutions to understand the risk of each customer before making a purchase. These measures are critical in reducing crimes, so that the art market remains safe.

Although it is true that criminals often purchase art and other historical artifacts as part of their operations, the art industry has also been a victim of money laundering. Consequently, the art industry is a prime location for these criminals to launder their cash. And, because the industry is so large, the money launderers can sell their artworks to the next buyer. In other words, the art industry can serve as an excellent vehicle for a criminal to hide their assets.

The art market has long been a hotbed for money laundering. The art world is a great place to hide illicit funds, as it facilitates high-end transactions and anonymous art buyers. Additionally, it offers a vast market for artwork, making it the perfect place to hide money. If someone is trying to get cash from a criminal, the art market is the perfect place. If he wants to hide his identity, he can buy fine art.

A recent Senate investigation uncovered the numerous vulnerabilities of the art world and revealed a high level of money laundering. Those involved in the art business should be aware of the risks of this activity. They should also be aware of the dangers and regulations associated with it. In fact, the art industry has become a hotbed of illicit activity. If the money launderer is not caught, then the crime can be prevented.

Did you know that there is a mysterious large warehouse covering an area of 60,000 square meters near the border between Switzerland and France? Strictly guarded and impeccable, there are only hurried wealthy people and art dealers in and out. The number of treasures in this warehouse far exceeds that of any large museum in the world, but it is never open to the public. The money laundering paradise for the rich, "Geneva Free Port".

It is estimated that there are more than 1 million works of art in it, and there are only a thousand of Picasso's paintings! There are also treasures looted from various places by the European and American powers during the Nazi period. Pieces of rare treasures are covered with white cloth, and the sky has not been seen for a long time...

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