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Enhancing Public Accountability: Key Elements of the Public Office (Accountability) Bill 2025
Kirsty Cook
Since the introduction of the Money Laundering Regulations in 2017, HMRC have maintained a public list of businesses within the regulated sector who have breached their AML obligations. Aside from being a warning of the perils of non-compliance, the identities of the publicly named and shamed businesses offer a glimpse into HMRCs priorities. The eagle-eyed observer of the latest update to this list will note that it includes for the first time a business within the art market sector.
Art market businesses have been subject to the UK’s Money Laundering Regulations since January 2020 and must now comply with the same onerous obligations as those sectors which have long been recognised as high risk for money laundering. One such obligation is the requirement to have been registered with HMRC as an ‘art market participant’ by 10 June 2021 or else face a penalty for breaching the Money Laundering Regulations.
The business identified on the latest HMRC list has the ignominious honour of being the first art market participant to be fined for failing to register with HMRC in time. The fine was levelled in the first quarter of this year and it unlikely to be an isolated incident; the registration deadline is long past and HMRC have confirmed they are currently investigating a number of cases of businesses for failing to register whilst trading.
HMRC may have decided that art market businesses have had sufficient time to get their houses in order in respect of their AML obligations but it is not all doom and gloom. A business that has breached the Money Laundering Regulations may avoid a financial penalty if it can demonstrate that it took all reasonable steps and exercised all due diligence to ensure that it did comply with its AML obligations. There is guidance to assist in this regard; in July 2021 HMRC published its first risk assessment entitled ‘Understanding money laundering risks and taking action for art market participants’ and the Treasury approved ‘Guidance on Anti Money Laundering’ by the British Art Market Federation has recently been updated to offer further clarification.
How can we help?
We have significant experience working with individuals and businesses within the art market sector. We regularly advise on AML obligations and can assist with drafting policies and procedures to ensure there are robust controls in place.
FURTHER INFORMATION
If you have any questions regarding this blog, please contact Gemma Tombs or one of our specialist AML lawyers.
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ABOUT THE AUTHOR
Gemma Tombs is a Legal Director in the Criminal Litigation team and brings a wealth of experience to the role, having advised clients facing investigation and prosecution for many years. Gemma was previously a partner at Corker Binning and has been ranked as a leading individual in Crime by Chambers & Partner and been recommended by The Legal 500 in Fraud: White Collar Crime.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
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