You may have heard about the new EU Anti-Money Laundering (AML) measure that went into effect on January 1st, 2020 (often referred to as the AML 5th Directive) that affects art dealers and auction houses. We want you to know that Artsy is both aware of these changes and taking steps to comply with this new law. We take money laundering very seriously, and we believe that these new regulations will help foster greater trust and credibility in the art market.
How does this law affect Artsy?
The 5th Directive regulates art dealers and auction houses in the EU, as well as the United Kingdom, in a similar manner to credit and financial institutions. The most significant change is that now, anyone trading or acting as an intermediary in an art transaction where the value of the transaction is over €10,000 will be subject to additional checks.
How is Artsy responding?
Here’s what Artsy is doing to respond to the 5th Directive, to foster a deeper level of trust in the art market, and to make the buying process as smooth, secure, and efficient as possible for collectors on Artsy. We will be taking a risk-based approach, which includes:
- Training our staff
- Implementing new policies that satisfy these new regulations and requirements, building on our already industry-standard security and anti-fraud practices
- Deploying new technologies that further strengthen trust and confidence in our marketplace, as well as providing additional layers of identity verification
These steps are in addition to the marketplace security we already provide through technology like Stripe Radar, augmented by protocols drawn from our deep experience in the online art market.