AS NFTS FLOURISH, US TREASURY RAISES ART MONEY LAUNDERING ALERT

Sat 05 February 2022:

The US Treasury Department issued a set of recommendations on Friday to combat illegal finance in the high-value art market, as well as a warning that the developing digital art industry, which includes non-fungible tokens (NFTs), may pose new risks.

The agency said its study examined the facilitation of money laundering, financing of terrorism through trade in high-value digital art and certain participants in those markets.

“Several qualities inherent to high-value art – the way it is bought and sold and certain market participants – may make the high-value art market attractive for money laundering by criminals,” it said in a statement.

“Further, the emerging digital art market, such as the use of non-fungible tokens (NFTs), may present new risks, depending on the structure and market incentives,” it added.

The agency recommended creating and enhancing private sector information-sharing programs to foster transparency among art market participants.

The study suggested that several options be considered to address the risks, including updating law enforcement and customs enforcement training, improving private sector information sharing, and imposing anti-money laundering and counter-terrorism financing requirements on certain art market participants.

However, it stated that, in comparison to other sectors that represent a danger of terrorist funding and money laundering, the multibillion-dollar industry should not be a priority for the application of rules to combat illicit financing.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

_____________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent