Washington, DC – U.S. Senators Sheldon Whitehouse (D-RI), John Fetterman (D-PA), Chuck Grassley (R-IA), Bill Cassidy (R-LA), Andy Kim (D-NJ), and David McCormick (R-PA) introduced the Art Market Integrity Act, legislation that would require art dealers and auction houses to comply with anti-money laundering (AML) and counterterrorism financing regulations under the Bank Secrecy Act (BSA).
The art market, a $25 billion industry in the United States and the largest of its kind globally, is one of the last major markets not required to meet these standards, making it vulnerable to exploitation by sanctioned individuals, terrorist financiers, and other criminals. The Treasury Department has identified the art market as susceptible to money laundering and sanctions evasion.
“Kleptocrats, foreign adversaries, and other bad actors abuse the opaque nature of the high-end art market to evade American sanctions and stow their loot behind the rule of law,” said Senator Whitehouse. “There is bipartisan interest in shining light into the murky world of art dealing.”
“Art should be for art-lovers, not terrorists and criminals,” said Senator Fetterman. “For too long, loopholes have allowed Russian criminal kingpins to evade sanctions and terrorists like Hezbollah to funnel money through art deals. I’m grateful to Senators Grassley, Whitehouse, McCormick, Kim, and Cassidy for working across the aisle to require art dealers and auction houses to perform basic due diligence. This needs to stop now.”
“For decades, criminal enterprises have used America’s multibillion-dollar art industry as a personal piggy bank for money laundering schemes, terrorist financing and other nefarious activities. By requiring our nation’s art market to comply with existing anti-money laundering and counter-terrorism financing laws, this bipartisan legislation would keep art, and millions of dollars, out of the wrong hands,” said Senator Grassley.
“Criminals and terrorists use art sales to fund their crimes,” said Dr. Cassidy. “We have similar rules for jewelry, precious metals, real estate, and more. Let’s do it for art too.”
The Art Market Integrity Act specifically targets high-risk art market transactions while exempting artists themselves and businesses with under $50,000 in annual art transactions. It would align the United States with international standards already adopted by the United Kingdom, European Union, and Switzerland, preventing America from becoming a safe haven for illicit activities.
Senator Whitehouse has long led the charge to strengthen America’s hand against international corruption and kleptocracy. The Senator led the efforts in Congress to pass the most important anti-money laundering law in two decades, the Corporate Transparency Act, and the broader Anti-Money Laundering Act. Both laws clamp down on criminals and foreign enemies hiding assets from U.S. law enforcement, national security officials, and tax authorities.
Last year, Senator Whitehouse applauded the Financial Crimes Enforcement Network (FinCEN)—the Treasury Department’s bureau charged with cracking down on terrorist and cartel financing and other financial crimes—for finalizing two rules to strengthen anti-money laundering safeguards in the U.S. residential real estate market and private investment industry following his encouragement. Since 2021, Whitehouse has co-led the bipartisan appropriations effort to increase funding for FinCEN’s anti-money laundering operations, overseeing substantial increases to the agency’s resources.
The Art Market Integrity Actis endorsed by the Antiquities Coalition, Transparency International U.S., the FACT Coalition, FDD Action, the American Jewish Committee, Razom for Ukraine, American Coalition for Ukraine, the Initiative for the Recovery of Venezuelan Assets(INRAV), the National Border Patrol Council, and the Federal Law Enforcement Officers Association (FLEOA).
The full text of the bill is available here.
