Page:2020-07-29 PSI Staff Report - The Art Industry and U.S. Policies that Undermine Sanctions.pdf/2

THE ART INDUSTRY AND
U.S. POLICES THAT UNDERMINE SANCTIONS

TABLE OF CONTENTS

I.IIEXECUTIVE SUMMARY

1

II.IBACKGROUND

16

A. U.S. Sanctions Enforcement

16

1. The U.S. Treasury Department

16

2. Sanctions Following the Russian Federation’s Invasion of Crimea

20

B. The Art Market

33

1. Money Laundering in the Art Market

35

2. The Art Industry is the Largest Legal, Unregulated Market in the United States

36

3. The Applicability of the Berman Amendment to High-value Art

38

4. Shell Companies

39

C. The Four Major Auction Houses

41

1. Sotheby’s

41

2. Christie’s

43

3. Phillips

45

4. Bonhams

46

5. Online Auctions during the COVID-19 Pandemic

46

D. Art Dealers, Art Galleries, and Art Fairs

47

E. Voluntary Anti-Money Laundering and Sanctions Programs in the Art Industry

49

1. Sotheby’s

50

2. Christie’s

55

3. Phillips

58

4. Bonhams

59

5. Private Art Dealer

61