What do AML rules applying to the art trade in Switzerland, the US and the EU have in common? Not much, but increasingly more!

RAM Task Force member Anne Laure Bandle and NY Committee member Irina Tarsis were speakers at the Schulthess Forum Kunst im Recht as part of a panel on Due diligence and Money laundering, risk assessement in international comparison. The panel also included former RAM Task Force member Sandrine Giroud and Sibylle Loyrette.

💼 Key Insights on Regulatory Insights/Trends:

– Switzerland’s narrower AML scope applies mainly to financial intermediaries and dealers, with unique thresholds, such as the CHF 100k cash limit for dealers.
– AML rules are focused on client and fund monitoring, not on the the art objects themselves.
– Nonetheless other Swiss laws such as the Cultural Property Transfer Act impose due diligence verifications in art transactions both on the seller and buyer sides.
– Interestingly, banks often require dealers to meet higher standards than Swiss law mandates.
– In contrast, EU/UK rules impose more expansive requirements that impact the art trade, raising competitive pressures and compliance challenges.
– Over time, it seems that Swiss law will adapt to the compliance requirements and tools existing in our neighbouring countries, for example with the introduction of a Federal Register of beneficial owners (soonest in 2026).

🔑 Best Due Diligence Practices:

– Connecting financial standards with art market practices is essential. This includes establishing checklists, understanding applicable regulations, and mitigating risks effectively.
– Using the Responsible Art Market Due Diligence Toolkit, now also with an appendix dedicated to the Antiquities trade 😉