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Fetterman, Colleagues Introduce Legislation to Crack Down on Money Laundering and Terror Financing in the Art Market

Washington, D.C. – Today, U.S. Senators John Fetterman (D-PA), Chuck Grassley (R-IA), Sheldon Whitehouse (D-RI), Bill Cassidy (R-LA), Andy Kim (D-NJ), and David McCormick (R-PA), introduced the Art Market Integrity Act, bipartisan legislation that would require art dealers and auction houses to comply with anti-money-laundering (AML) and counter-terrorism financing regulations under the Bank Secrecy Act (BSA).

Currently, 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.

“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.

“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.”

“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.”

“We cannot allow cartels, terrorist organizations, and other bad actors to have a free pass to funnel their money via the art market,” said Senator Kim. “This bill would bring this industry up to the standards of other major markets to enforce the rule of law, ensure fairness, and look out for Americans’ security.”

“Hezbollah and Russian oligarchs have been known to utilize high-value art transactions to launder money and evade sanctions. I’m pleased to partner with Senator Fetterman on this legislation to ensure Congress works with participants in the art market to stand up appropriate safeguards,” said Senator McCormick.

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.

In recent years, the Treasury Department identified the art market as particularly susceptible to money laundering and sanctions evasion. High-profile cases have spotlighted the urgent need for reform, including the indictment of Hezbollah financier Nazem Ahmad using art as part of his scheme to launder over $160 million. Multiple Kremlin cronies have used art to evade sanctions: Arkady and Boris Rotenberg’s used $18 million worth of art to get around sanctions, Roman Abramovich transferred almost $1 billion in art to his wife ahead of new sanctions, and last year the DOJ indicted Anastasia Simes for laundering money on behalf of sanctioned Kremlin crony Aleksander Udadov.

The Art Market Integrity Act is 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 Art Market Integrity Act is a smart, pragmatic, and long-overdue step to protect a multi-billion-dollar industry from criminal abuse. Right now, the United States is the last major art market without basic safeguards against money laundering, sanctions evasion, and terrorist financing. This puts our legitimate businesses at risk while others, including the U.K., EU, Switzerland, and even China, have already acted. Aligning with these global standards should not be burdensome—many U.S. dealers already comply with them abroad—but it will help preserve the integrity of the market here at home and keep the U.S. a competitive and trusted leader in the global art and antiquities trade,” said Deborah Lehr, Chairman and Founder of the Antiquities Coalition. 

“Criminals continue to exploit the art market to launder money and fund illicit activity,” said Federal Law Enforcement Officers Association (FLEOA) National President Mathew Silverman.  “The Art Market Integrity Act brings much-needed transparency and accountability, giving law enforcement vital tools to combat these threats. We commend Senators Fetterman, Grassley, Whitehouse, McCormick, Kim, and Cassidy for their bipartisan leadership and fully support this legislation.”

“This is how corrupt politicians and other criminals launder the money that they steal: By using unaccountable middlemen to execute untraceable sales through a global market that lacks guardrails,” said Scott Greytak, Deputy Executive Director for Transparency International U.S. “Years of bipartisan concern over the abuse of the U.S. art market by money launderers, kleptocrats, and sanctioned individuals have led us to this important moment. This bill would finally bring sunlight to one of the world’s most exploited financial blind spots.” 

“The National Border Patrol Council fully supports this bill, which will require art dealers and auction houses to comply with anti-money laundering and counter-terrorism financing regulations. This legislation will give federal law enforcement agents the tools we need to shut down money laundering operations that multi-national criminal organizations use to fund unlawful activities, like drug and human trafficking across our border,” said Paul Perez, President of the National Border Patrol Council.

“Terrorist organizations depend on financial support to fund attacks, recruit members, and expand their influence. American Jewish Committee (AJC) is grateful to Senators John Fetterman (D-PA), Chuck Grassley (R-IA), Sheldon Whitehouse (D-RI), David McCormick (R-PA), Andy Kim (D-NJ), and Bill Cassidy (R-LA) for introducing the Art Market Integrity Act, which aims to disrupt these financial networks and weaken support for terrorist regimes. All industries and economic arenas that are susceptible to this most dangerous type of corruption benefit from greater oversight,” said Julie Rayman, AJC’s Senior Vice President of Policy and Political Affairs.

“Cartels, kleptocrats, and even terrorists are abusing US art markets to launder money and evade sanctions. By closing a dangerous financial secrecy loophole, the Art Market Integrity Act will protect art dealers from being exploited and help to defund illicit activities that threaten our safety and national security,” said Nate Sibley, Fellow at the Hudson Institute (speaking solely on his own behalf). 

“This important legislation will help the United States go after Russian oligarchs using art to launder money and aid Russia’s invasion of Ukraine. Ukrainian authorities have identified over $1.3 billion worth of art pieces being used by Russian oligarchs to evade U.S. sanctions—the time is right for Congress to crack down,” said Mykola Murskyj, Director of Razom Advocacy.

“Subjecting the art market to anti-money laundering statutes is urgently needed, as the lack of regulation has allowed criminals to exploit the art trade for laundering billions, evading sanctions, and even financing terrorism, posing a direct threat to national security and economic integrity.  By extending AML requirements to art dealers, galleries, and auction houses, we can close dangerous loopholes, increase transparency, and ensure the art market no longer serves as a tool for financial crime,” said Tyler Stapleton, Director of Government Relations, FDD Action. 

“The American Coalition for Ukraine endorses the Art Market Integrity Act, recognizing the important step it takes to prevent money-laundering, create a record that law enforcement can use to identify and recover assets, and closes loopholes that Russia uses to evade sanctions,” said Marianna Tretiak, Chair of the Board, American Coalition for Ukraine.

“The extension of the BSA to the U.S. art market is a long-overdue step toward dismantling the opaque financial networks used by corrupt Venezuelan officials to conceal stolen public funds. For INRAV, this measure directly supports our mission to recover, protect and eventually return forfeited assets on behalf of the Venezuelan people. By bringing transparency and accountability to this high-risk sector, Congress would strike at the heart of the money laundering schemes that undermine democracy, fuel authoritarianism, and rob citizens of justice,” said Maria Alejandra Marquez, CEO & Founder of the Initiative for the Recovery of Venezuelan Assets (INRAV).

“This bipartisan legislation takes long overdue steps to deny criminals, U.S. adversaries, and corrupt officials the opportunity to launder money through the U.S. art market – the largest, legal unregulated market in the country,” said Ian Gary, Executive Director of the Financial Accountability and Corporate Transparency (FACT) Coalition. “Sanctioned Russian oligarchs and Hezbollah financiers are among those who have exploited this vital gap in U.S. regulations to bankroll their activities. By requiring professionals in the art industry to know their clients, the Art Market Integrity Act will close a key vulnerability in U.S. markets and help keep Americans safe.” 

The full text of the bill is available here. A fact sheet on money laundering in the art market is available here.