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04.02.2025
ART LAUNDERING
04.02.2025

ART LAUNDERING

The value of a work of art largely depends on people’s opinions and, therefore, is usually biased. People can make mistakes or be biased. At the same time, a small and easily transported item can have enormous financial value. Therefore, works of art have a significant criminogenic potential. They can be used by intruders to “launder” criminally obtained funds.

 An illustrative story happened copmaratively recently in Italy. In the decision No. 7241 of February 24, 2020, the Italian Supreme Court, approved the conviction of the Venice Court of Appeal. In the dock was an entrepreneur who had used the funds received as a result of the bankruptcy of a well-known Italian company in order to purchase 22 works of art. Among them were works by such artists as Pablo Picasso, Lucio Fontana, Andy Warhol, and Jean-Michel Basquiat. This was qualified as “the conversion of criminally obtained funds into other property”. The court drew attention to the fact that the transaction worth about 16 million euros was completed in a short period of time. Additionally, according to the court’s verdict, the transfer of shares is extremely unusual for transactions of this type. The businessman was convicted.

In France, a high-profile case is associated with the bronze statuette “Jean d’Air” by sculptor Auguste Rodin and the painting “Woman with a Dog” by artist Marie Laurencin. The Criminal Chamber of the French Court of Cassation put an end to these cases on February 1, 2005 (case No. 04-81.962). The court found that in November 1999, law enforcement agencies received a complaint about the theft of works of art. A month later, these valuables were sold to the Tilier Art Gallery through an intermediary. In the same month, the gallery resold the statuette and the painting.

The French Supreme Court drew attention to the fact that during the implementation of these transactions, none of their participants checked the legality of the origin of the works of art. Additionally, a description of the painting by Marie Laurencin was presented, which differed from the description in the catalog. Finally, the court concluded that the parties to the transactions had not taken appropriate measures to establish the authenticity of the works (for example, none of them had contacted the Rodin Museum). According to the court’s position, all this is “tantamount to laundering a work of art”.

Money laundering is possible not only in connection with money. It can also occur in connection with cultural values. This happens if the funds obtained through criminal means are used to purchase works of art. Italian and French jurisprudence shows that such actions can be considered criminal by the courts. It should be taken into account in order to avoid criminal risks.

Alexander Gusev
Alexander Gusev
Senior lawyer
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