The registration obligation that rests on the art and antiques dealer (as well as the specialized warehouses) had been in the Anti-Money Laundering Act for some time. However, we had to wait for an implementing decree before this provision came into force. This implementing decree has now finally been published. This means that the Anti-Money Laundering Act now also effectively applies to the art and antiques sector.
Threshold Anti-Money Laundering Act and registration obligation
To recap, art dealers, antique dealers and intermediaries – including auction houses – are subject to the Anti-Money Laundering Act when a transaction or set of related transactions amounts to €10,000 or more. For auction houses , the law takes into account the estimated maximum price for this threshold.
Below that minimum limit , one can therefore continue to trade without registration and is not subject to the Anti-Money Laundering Act. However, in such a case, one is obliged to refrain from carrying out or intervening in a transaction that would reach the threshold value of €10,000.
There is no minimum limit for warehouses. These are automatically subject to the Anti-Money Laundering Act if they specifically offer a storage service for art and antiques.
No new counter
What is immediately striking is the government’s (justified) choice not to create yet another new registration register or counter. The registration must simply be done in the existing Crossroads Bank for Enterprises (CBE).
Please note, however, having a company number is not enough. Art and antiques dealers and intermediaries, including galleries, antique dealers and auction houses, must now also provide a specific NACEBEL code to declare their activity. The government also provides a separate code for fairs and salons. A separate code is also provided for specialised warehouses. Specifically, the following codes are required to be provided when registering:
- The sale of art or antiques (with a value of at least €10,000) is given the codes: 4778702, 4779102, 4799002 and 4791005
- Exhibitions and salons of art or antiques (with a value of at least €10,000) are given the code: 8230001
- Warehouses specialising in art or antiques are given the code: 5210021
Deadline for registration
Art and antiques dealers and intermediaries are now obliged to add these codes to the description of their activity at the business counter. However, the government has imposed a tight deadline for this. For example, this adjustment must take place by 1 January 2022 at the latest .
On the other hand, this obligation only applies if one falls within the scope of the Anti-Money Laundering Act. We previously explained the scope of the Anti-Money Laundering Act in our blog: Anti-money laundering legislation in the art trade.
No check at registration
To be able to register as an art or antiques dealer, one must meet professional conditions. For example, one may have been denied civil rights, declared bankrupt without rehabilitation or convicted of certain crimes.
However, this registration obligation is not accompanied by a prior check of these conditions. However, the FPS Economy has been designated as the supervisory authority. It will check compliance with these conditions and the correct description of the activities.
Sanctions
If art and antiques dealers and intermediaries fail to comply with these obligations, they risk administrative fines or even criminal prosecution. The administrative fines can amount to €1,250,000.
Do you have questions about anti-money laundering legislation or what it means for you in concrete terms? Or are you looking for help with the adjustment of your registration in the Crossroads Bank? Do not hesitate to contact us for a free and no-obligation introductory meeting!
Would you like to know more about the exact obligations that apply to you under the Anti-Money Laundering Act? Then be sure to read our blog: Anti-money laundering obligations for art dealers: concrete.
