The Responsible Art Market Initiative: Guidelines on combatting Money Laundering and Terrorist Financing
The Responsible Art Market Initiative (“RAM”) formed in Geneva in 2015 offers the Guidelines on combatting Money Laundering and Terrorist Financing for the businesses transacting in the art market in Switzerland and abroad.
The focus of the guidelines lies mainly on art dealers, who are at great risk of being used by criminals in schemes of money laundering and terrorist financing. Although the guidelines have no legal efficacy, they convey the best practice from the organisers of the RAM. Voluntary acceptance of the guidelines by the art businesses is particularly important in the view that legitimate international art market exists in the environment with no global international law.
The founding members of the RAM include Christie’s, SGS, Port Francs, the Art Law Foundation (FDA), Seydoux & Associes Fine Art, the University of Geneva (Faculty of Law, prof. Ursula Cassani), public prosecutor Jean-Bernard Schmid.
Identifying red flags by art businesses as a preventive measure in art transactions allows avoid negligence as opposed to intent, when a red flag is known and ignored. This voluntary measure stimulates self-regulation of the legitimate art market, and also provides protection from criminal clients.
Sources: RAM official website, JDSUPRA