19/04/2023
Any artists out there? you may need to register for anti-money laundering with HMRC - see below
Dear customer,
Art market participant (AMP) businesses are relatively new to anti-money laundering supervision and may not yet be aware they need to be registered. If you act for such a business, you should advise them of the need to be registered.
An AMP is defined as a business involved in the sale or purchase of relevant works of art over the threshold of 10,000 euros (or equivalent in any currency).
A work of art is defined in the Value Added Tax Act 1994 section 21(6) to (6B) for the purpose of section 21(5)(a) of that act. This is summarised as:
• a painting, drawing, collage, decorative plaque or similar picture
• an original engraving, lithograph or other print
• an original sculpture or statuary
• a sculpture cast
• a tapestry or other hanging
• a ceramic
• an enamel on copper
• a photograph
but not:
• a technical drawing, map or plan
• any picture comprised in a manufactured article that has been hand-decorated
• scenery (including backcloths)
An artist selling their own works of art is not included within the UK definition of an AMP and therefore is not required to be registered. If a registered AMP is dealing with an artist as their customer, they will be required to conduct customer due diligence on the artist.
AMPs must register with HMRC and comply with the regulatory requirements. This includes having a written risk assessment, written policies, controls and procedures, training, and conducting customer due diligence.
HMRC publishes guidance and further information on understanding specific risks for AMPs on GOV.UK.
To register with HMRC go to GOV.UK and search 'register or renew your money laundering supervision with HMRC'. You’ll need your Government Gateway user ID and password to sign in. If you don’t have this yet, you’ll need to set up an organisation account on the Government Gateway.
During the registration process only one email address can be provided. We recommend this is the AMPs email address, and not their accountants. This ensures the AMP will receive updates and information direct from us.
Yours faithfully
Andrew Henderson
Promote Team
HMRC Economic Crime Supervision