EU Anti-Money Laundering Directive: Italy vs UK in Art Market Compliance

The 5th EU Anti-Money Laundering Directive (2015/849), implemented in April 2018, now directly regulates the art industry for transactions of €10,000 or more. Italy adopted the directive via Legislative Decree No. 125/2019 in October 2019, requiring art dealers, galleries, and auction houses to perform AML risk assessments and due diligence. However, enforcement remains weak: no regulatory authority has been designated to oversee compliance, and market participants report inadequate communication from authorities regarding suspicious activity reporting obligations. In contrast, the UK implemented stricter measures on January 10, 2020, requiring all art market operators to register with HMRC by June 2020, appoint a Money Laundering Reporting Officer, and satisfy all directive clauses. Non-compliance can lead to prison sentences, fines, and reputational damage. The UK art sector has largely embraced the changes, aided by regulatory collaboration. A Deloitte study estimates stolen art value at $4–6 billion annually, highlighting the sector's vulnerability to money laundering and terrorist financing. The article, authored by Paula Trommel, Global Head of Risk and Compliance at Hauser & Wirth, argues that ignoring money laundering is no longer acceptable and that governments must educate the market. The US is expected to adopt similar legislation soon.