This month, Art Basel and UBS released their annual global art market analysis: The Art Market Report 2024. As in years past, the United States remained by far the largest art market in the world in 2023. As a result, U.S. law and policy that affects the American art market has a significant impact on the entire global industry.

In an article for LinkedIn, AC Executive Director Tess Davis and AC Director of Programs Helena Arose give their key takeaways from the report for policy makers and the wider public.

Check out the article below or on LinkedIn, and follow Tess, Helena, and the AC on LinkedIn for more.

February 2024 marked two years since Russian forces invaded Ukraine, destroying lives, communities, and cultural heritage. During that time, we have also seen the exploitation of heritage and historical propaganda become one of the Kremlin’s most effective weapons for its information warfare program targeting the West, a scenario the AC’s Think Tank warned would happen, as well as the organized plunder of Ukraine’s art and antiquities by invading forces. While priceless to the Ukrainian people, these treasures have the potential to be a valuable commodity to the cash-strapped Russian state, and thus may greatly undermine the U.S.-led sanctions regime. The lack of regulation of the American art market is additionally providing another—now well documented—route for Russia to evade sanctions.

At a recent meeting held by the Council on Foreign Relations (CFR) on February 23, 2024, the U.S. Deputy Treasury Secretary Wally Adeyemo spoke on challenges facing the U.S. sanctions strategy. Tess Davis, Executive Director of the Antiquities Coalition and Term Member of the CFR, had the opportunity to ask the Secretary about a sanctions black hole: the American art market.

“Russia is isolated from the global economy, but there remains an easy backdoor through the $30 billion American art market, which is arguably the largest unregulated market in the world, period. And the U.S. government has proven in great detail how art’s providing a lucrative, and unfortunately untraceable, funding source for blacklisted individuals and entities. We’re talking tens of millions to Putin’s top enablers, the Rotenberg brothers, but also 160 million (dollars) to Hezbollah,” Davis noted. She then asked what Treasury is doing to fight back against these risks.

Adeyemo disclosed how his colleagues at the Office of Foreign Asset Control are focused on the art market and pursuing both wealthy Russian oligarchs and those close to the Kremlin. He also shared details on how the Russian Elites, Proxies, and Oligarchs (REPO) Task Force, which was founded in March of 2022 and is made up of the G7 and other allies, is working to ensure the U.S. and allies can track assets, including art, that may be used to move money around the world. 

“Ultimately, the thing that we know is that wealthy Russians have spent decades learning to evade not only our sanctions, but Russian taxes, frankly. So they are very good at this. But what we—by setting up the task force—the Repo Task Force, it’s put us in a position where we’re able to share more information not only in the United States, not only with the U.K., but with a number of our allies and partners to be able to go after their ability to move wealth in ways like this,” he added.

The Antiquities Coalition thanks the CFR and U.S. Deputy Treasury Secretary Wally Adeyemo for facilitating this important conversation. While there is much more to be done, open collaboration and consideration of all markets will ensure maximum effectiveness of the U.S. sanctions strategy.

Watch the full session here and learn more about how the Antiquities Coalition is encouraging responsible art markets and trade practices.

In an article for LinkedIn, AC Executive Director Tess Davis and AC Director of Programs Helena Arose consider the question: Is the Rubin Museum’s closure in 2024 connected to its past involvement with the illicit trade in antiquities? 

Despite the museum’s answer that it is not, Davis and Arose examine the institution’s track record of collecting and transparency, and conclude that “Whether directly related or not, this situation underscores the power of public perception in shaping the actions of cultural institutions in the United States. In any case, it serves as a cautionary tale, highlighting the importance of transparency and ethical conduct in maintaining public trust.”

As institutions that serve the public, museums must begin to face the reality of reputational and financial risks associated with unlawful or unethical behavior. The AC is committed to holding all those involved in the illicit trade of antiquities accountable for their role in cultural racketeering.

Check out the article below or on LinkedIn, and follow Tess, Helena, and the AC on LinkedIn for more.

Metropolitan Museum Will Repatriate 14 Looted Masterpieces Linked to Douglas Latchford

The Antiquities Coalition (AC) applauds the continuous and collaborative efforts of U.S. Law Enforcement and the Kingdom of Cambodia to recover the Kingdom’s looted heritage. The AC is proud to actively support these efforts, working hand-in-hand with the Cambodian government, law enforcement officials, and journalists. Through our advocacy and awareness campaigns, we strive to expose the crimes of notorious antiquities traffickers such as Douglas Latchford, and contribute to the ongoing pursuit of justice.

Most recently, on December 15, the Southern District of New York U.S. Attorney’s Office, Homeland Security Investigations, and the Metropolitan Museum of Art (the Met) announced the return of a total of 16 antiquities: 14 to Cambodia and to 2 Thailand, all connected to Latchford. This announcement was further covered in a segment on CBS’s 60 Minutes, as part of a story on Cambodia’s efforts to reclaim its heritage which aired on December 17th after a year-long investigative report by the program.

The pieces returning are part of a decade-long investigation into Latchford’s crimes by HSI and the U.S. Attorney’s Office for SDNY, which is still ongoing. Among the many masterpieces being returned is a sculpture of a 10th century female goddess from the ancient royal capital of Koh Ker. The twin sculpture, also looted from Koh Ker, remains on the list of the Antiquities Coalition’s Ten Most Wanted Antiquities. 

The Met has faced pressure in recent years to review its collections following several high-profile seizures of artworks connected with suspected traffickers, including pieces connected to Latchford. In 2013, the museum repatriated two Khmer sculptures donated by Latchford. While we applaud these efforts, we acknowledge that more must be done to repatriate remaining stolen heritage from within the Met. In their statement, the Cambodian Ministry of Culture noted that they appreciated this return as a “first step in the right direction.”

“The return of these objects from The Met to their rightful homes in Cambodia and Thailand is an encouraging step for the institution. We continue to call on the U.S. government, the Department of Justice, and the Department of Homeland Security, to play a role in treating the illicit trade in cultural objects like the crime that it is.” -Tess Davis, Executive Director, Antiquities Coalition

Damian Williams, Assistant U.S. Attorney also emphasized the ongoing nature of the investigation in his public remarks on the return. He urged anyone or any institution with potentially looted antiquities to come forward: “Come see us, before we come see you.”

While Latchford escaped justice, passing away in 2020 under indictment, the U.S. and Cambodia’s unwavering efforts prove that the pursuit of accountability for cultural crimes transcends individuals, fostering a commitment to safeguarding global heritage and ensuring restitution even if it takes years.

AC Joins Global Leaders Seeking Solutions at the 10th UNCAC Conference of State Parties

The $67.8 billion dollar art market remains the largest unregulated market in the world. The multi-billion dollar scale, the unique nature of art itself, and opaque business practices make this market susceptible to a wide range of criminal activity, including fraud, forgery, tax evasion, trafficking, money laundering, sanctions evasion, and terrorist financing.

In order to effectively address these crimes, it is crucial to recognize and address the role of corruption. Recent cases have shown the full extent of how corruption undermines laws and their enforcement, ensures the art market stays unregulated, and helps criminals to escape arrest, conviction, and effective punishment.

Despite this, there has been a glaring lack of attention on the international stage regarding the connections between cultural racketeering and corruption, leaving a critical gap in efforts to combat these pervasive criminal activities within the art market.

On December 11-12, 2023, the Antiquities Coalition brought this topic to a global audience at the 10th session of the Conference of the States Parties (CoSP10) to the United Nations Convention Against Corruption (UNCAC), a forum that brings the international community together in the prevention and fight against corruption.

The AC was proud to co-host a session as part of the special events program at CoSP10, “Cultural Racketeering & Corruption—Recommendations for UNCAC,” with the Italian Republic, the United Mexican States, and the United Nations Office on Drugs and Crime (UNODC), which was attended by over 50 participants from the convention.

The session was opened by His Excellency Carlo Nordio, the Minister of Justice of the Italian Republic, a strong signal of his country’s commitment to this issue. Additional participants included: Melanie Chabert, Associate Crime Prevention and Criminal Justice Officer with the Corruption and Economic Crime Branch of UNODC, Ambassador Javier Díaz de León of the Mexican Foreign Service, and Justice Luigi Marini, who serves on the highest court in Italy and dedicates his work to protecting cultural heritage.

The event outlined the close connection between illicit trade and the forces that facilitate it. Tess Davis, Antiquities Coalition Executive Director, elaborated on this dynamic: “Cultural racketeering would not be possible without corruption. Tackling the linked issues of corruption and cultural racketeering requires working across industries, the public and private sectors, and national borders.”  Participants discussed this issue in the broad context of UNCAC, how UNODC is suited to tackle these interlinked problems, and showcased those facing this issue head-on. 

The AC also participated in the Private Sector Forum, “The United Nations Convention Against Corruption at 20: Uniting Leaders for Business Integrity.” Davis joined the session “Between Crime and Compliance: The Ambiguous Role of Gatekeepers in the Global Financial System” where she emphasized how art and antiquities crimes could only succeed with the complicity of those within the art market—like archaeologists, conservators, and dealers – and those who provide ancillary services—like bankers, lawyers, and accountants. 

Despite their strategic position that allows for preventing or interrupting illicit financial flows, these intermediaries often enable the behavior of bad actors, allowing them to thrive and take advantage of this unregulated market. 

Davis also highlighted how corrupt actors can range from soldiers, guards, customs agents, police, and prosecutors to “legal persons”—galleries, auction houses, other corporations, and unfortunately even not-for-profit institutions like museums. Additionally, any framework put in place needs to be on a parallel track with political leaders and elites having the will to resist utilizing organized crimes to their benefit. 

The Antiquities Coalition would like to thank the UNODC and our esteemed partners for highlighting the importance of regulating the art market in the fight against corruption. The AC is committed to working not just with organizations dedicated to preserving culture, but also with organizations like the UNODC to combat looting and better safeguard cultural heritage across the globe.

The art market continues to be the largest unregulated market in the United States—and arguably the world—leaving it vulnerable to bad actors. Failure to close existing loopholes has allowed criminals to continue evading the law, with serious consequence. 

One glaring example of this is evident in the U.S. Government’s efforts to isolate Russia’s economy following the 2022 invasion of Ukraine. Despite concerted efforts to impose sanctions and tighten economic restrictions, Bloomberg reported in February that federal prosecutors are investigating major auction houses regarding Russian oligarchs, the American art market, and potential sanctions evasion. Concerns by the Department of Justice (DOJ) are valid, as a 2020 Senate report showed that individuals associated with the Kremlin had laundered vast sums through top New York auction houses to bypass U.S. sanctions from Russia’s 2014 aggression towards Ukraine. Unfortunately, these vulnerabilities persist, allowing exploitation by criminals and adversaries. Recent findings from the Pandora Papers and federal probes highlight ongoing issues. For instance, the DOJ indicted Nazem Ahmad, a prominent Lebanese collector linked to Hezbollah, for using art and luxury goods to bypass terrorism-related sanctions, enabling transactions of over $160 million in the U.S.

On August 8th, the Antiquities Coalition along with a coalition of allies dedicated to fighting financial crimes, recommended immediate and concrete actions in a letter addressed to Treasury Secretary Janet Yellen and Andrea Gacki, the incoming director of the Financial Crimes Enforcement Network (FinCEN),  urging them to close the $30 billion American art market to criminals. 

The coalition, which includes organizations such as Transparency International U.S., International Coalition Against Illicit EconomiesJewelers Vigilance Committee, and the Jeweler’s Vigilance Committee, as well as prominent AML experts like John J. Byrne, urges the Treasury, and specifically FinCEN, to prioritize closing the legal and regulatory loopholes that continue to make the art trade and its participants vulnerable to criminal misuse. Steps could include: 

• Issuing—and then finalizing—rules for antiquities dealers as required by the AML Act of 2020
• Applying AML/CFT protections to other high-risk American art market participants
• Working with the private sector to strengthen information sharing
• Updating guidance and training for law enforcement to include the unique risks and opportunities presented by the American art market
• Using existing tools, such as targeted recordkeeping and reporting requirements, as well as FinCEN alerts, to better understand and combat threats to the American art market from financial crimes like money laundering, terrorist financing, and sanctions evasion. 

To protect our shared history and responsible market actors, we must strengthen rules surrounding art and anti-money laundering (AML), counter-terrorist financing (CFT), and sanctions. In the past year, global conflicts have made these actions more critical than ever. We urge the leadership of FinCEN and the broader Treasury Department to take action to better safeguard our cultural heritage.

Read the full letter here: Bar Criminals from Exploiting the 30 billion dollar American Art Market