An art market business has become the first art market participant to be fined for breaching anti-money laundering requirements, HM Revenue and Customs has announced. Urban Art Online Limited, based in London, received a fine of £7,500 and was published alongside 175 other businesses also receiving penalties for not complying with rules designed to stop criminals laundering money from illegal activity.
Art market participants (AMP) have been required to register with HMRC for anti-money laundering supervision (AMLS) since June 2021, with over 1,000 business playing by the rules and registering on time.
Nick Sharp, Deputy Director of Economic Crime, HMRC, said: “We are determined to create a level playing field for businesses who play by the rules. That means taking action against the minority of businesses who fail to fulfil their legal responsibilities under the money laundering regulations.
“Money laundering is not a victimless crime. Our regulations are there to protect businesses from those criminals who would prey on their services to wash their dirty money.
“Serious and organised crime costs the UK billions of pounds every year and our anti-money laundering supervision is a vital tool in combatting that.”
The full list of businesses not complying with money laundering regulations is published on GOV.UK and includes 175 businesses receiving penalties totalling £2,180,708.
This follows a list previously published in May 2022 which saw 147 businesses receive penalties totalling almost £800,000.
HMRC is currently investigating a number of cases of businesses failing to register whilst trading, which could lead to prison sentences of up two years and an unlimited fine. HMRC have guidance and webinars available to help AMPs consider risks appropriate to their business and why register for supervision is important. You can find this by visiting GOV.UK – understanding risks and taking action for Art Market Participants
Businesses can check if they need to register for money laundering supervision on GOV.UK. Anyone can report unregistered businesses to HMRC using the online form on GOV.UK.
©2022 HMRC, .GOV
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