25606
portfolio_page-template-default,single,single-portfolio_page,postid-25606,stockholm-core-2.4,qodef-qi--no-touch,qi-addons-for-elementor-1.6.7,select-theme-ver-9.5,ajax_fade,page_not_loaded,,qode_menu_,wpb-js-composer js-comp-ver-7.9,vc_responsive,elementor-default,elementor-kit-38031

Laundering the Art Market: A Proposal for Regulating Money Laundering Through Art in the United States
Alessandra Dagirmanjian*
Note

The full text of this Note may be found here.

29 Fordham Intell. Prop. Media &Ent. L.J. 687 (2019).

Note by Alessandra Dagirmanjian

 

ABSTRACT

[A]

s high-net worth individuals have increasingly viewed art as a method of diversifying their portfolios, prices in the high-end global art market have exploded in the past several years. At the same time, investors have developed new methods for accessing art’s liquidity, such as art lending services and exchanges. While the changing character of art towards an asset class has opened the door to new investment opportunities, it has also left the art market particularly vulnerable to money laundering schemes. Existing characteristics of the art market, including a lack of uniform record-keeping standards among dealers and the speculative nature of art, also make it hospitable to this crime. In light of the art market’s vulnerability to money laundering, the need for legislation specifically addressing the industry seems clear. Yet, professional art intermediaries raise legitimate concerns about the compliance burdens and loss of confidentiality that accompany a regulatory scheme. This Note addresses the existing tension between potential anti-money laundering legislation and art dealers’ interests, and proposes regulatory solutions to prevent money laundering through art without disrupting the art market.

*Notes and Articles Editor, Fordham Intellectual Property, Media & Entertainment Law Journal, Volume XXIX; J.D. Candidate, Fordham University School of Law, 2019; B.A., English, Boston College, 2016. I would like to thank Professor Leila Amineddoleh for her guidance throughout the research and writing of this Note, as well as the IPLJ Editorial Board and Staff for their hard work during the editing process. I would also like to thank my parents, John and Angela, and my wonderful friends for their unending love and support.