Do dealers have to disclose details of their clients to other dealers?
The 5th Money Laundering Directive (known as 5MLD) took effect on January 10 this year and requires auction houses, art galleries and dealerships to conduct stricter due diligence on buyers who purchase from them works of art above a threshold of €10,000.
The regulation requires Art Market Participants (AMPs) – anyone trading in or acting as an intermediary in the trade of works of art that sell for above the threshold – to register and a pay a fee with HMRC.