Where do you stand on AML/CFT?

Who falls within the scope of AML/CFT obligations in the art market?

Your answer:

Correct answer: Both dealers and intermediaries: auctioneers, gallerists, antique dealers, marketplaces, leasing providers, art consultants, jewellers, watchmakers.

The obligations cover both sides of the market: those who buy and sell on their own account as much as those who bring the parties together. What triggers the obligations is the activity carried out, not the legal form of the business.

What sanctions can the Commission Nationale des Sanctions, the French AML/CFT sanctions authority, impose?

Your answer:

Correct answer: All of the above.

The Commission Nationale des Sanctions can combine all three: the fine, the named publication and the ban on practising. For a gallery or an auction house, it is usually the publication that costs the most.

Screening against the French national asset freezing register is required for any transaction of an amount equal to or above:

Your answer:

Correct answer: 1 cent

Asset freezing has no threshold. Whatever the amount, you have to check that the client does not appear on the national register before going ahead.

The first directive to bring art dealers within the prevention of money laundering and terrorist financing dates from:

Your answer:

Correct answer: 2001

The second European directive, in 2001, extended the anti-money laundering regime to art dealers for the first time. The ones that followed only widened the scope and lowered the thresholds.

Regulated businesses must assess the risks attached to their clients:

Your answer:

Correct answers: Before entering into the business relationship · During the business relationship

The risk assessment is carried out before entering into the relationship, then kept up to date throughout it. Once the relationship has ended, the obligation that remains is record keeping, not ongoing due diligence.

Which of these people is a politically exposed person (PEP)?

Your answer:

Correct answers: The French head of State · The spouse of a member of a court of auditors · An ambassador who retired 8 months ago · The senior officer in command of the Spanish army

PEP status covers senior political, judicial and military offices, in France as much as abroad, and extends to close family. It still runs for a year after the person leaves office. A local councillor or a mayor does not reach that level.

For a transaction above 10,000 euros, enhanced due diligence means:

Your answer:

Correct answer: Assessing the risks attached to the client, to the transaction and to the object.

Three dimensions to cover: the client, the transaction and the object. No authority provides a scoring tool: the assessment method is yours, and it is up to you to be able to justify it.

I must keep every document relating to my checks for:

Your answer:

Correct answer: 5 years

Five years from the last transaction carried out with the client. That period is what guarantees the records are available in the event of an inspection.

My client is a legal entity. To verify its identity, I have to ask for:

Your answer:

Correct answers: The identity document of the director and/or of the beneficial owner · A Kbis extract or another company identification document less than 3 months old

The Kbis extract has to be less than three months old: it is what proves the company still exists and that its officers have not changed. It goes with the identity document of the director or of the beneficial owner, not with that of the person placing the order.

I am the supervisory body that makes sure the regulation is complied with and applied. I am:

Your answer:

Correct answer: The AML/CFT supervision unit of the French customs authority

The AML/CFT supervision unit of the French customs authority inspects art market professionals. TRACFIN receives suspicious transaction reports and the Commission Nationale des Sanctions imposes penalties: three distinct roles.