Art Market Participants: What you need to know. Replay of HMRC Webinar (updated to June 2021 session)

February 4, 2020
by ArtAML Team

On 7th June 2020, three days prior to the deadline to register as an Art Market Participant in the UK, HMRC as regulator for the sector ran an informative HMRC.

Press play (which will take you to a separate webpage of HMRC):

HMRC webinar screenshot (Jan 2020)

(Alternatively, click here to watch the webinary replay.)

Selected Questions + Answers from the original webinar recorded in January 2020:

Q: What if we do not have the ID or passport photo of the client but his full name and address as well as email and phone number?
A: Hi, you must be able to identify and verify the customer, if you’re unable to do this with the information presented you must not proceed with the transaction.

Q: All of the payments we receive come from named bank accounts into our bank account, we never receive cash payments. Do we still need to register?
A: Yes.

Q: We were told that HMRC will produce guidance in addition to that from BAMF. Is this correct?
A: Yes, this will be published shortly.

Q: Could you provide the link that we need to follow in order to register {as an Art Market Participant with HMRC]?
A: Hi here is the link

Q: How much is the fee [to register as an Art Market Participant with HMRC]?
A: £300 per premises plus £40 per responsible person within the business.

Q: As a sole trader am I automatically the ML Reporting Officer?
A: Yes that is correct.

Q: Thank you. WHat is the annual fee for sole traders?
A: £300 per premises plus £40 for each responsible person in the business.

Q: For someone we have done business with 15-20 years. We know them very well, would we still need to verify them?
A: Yes, although your risk assessment would tell you how often you need to do this.

Q: What will be required of non-EU/UK businesses that are exhibiting at art fairs in the UK?
A: This is an issue we have been looking into in some detail. Any non UK business must still comply with UK legislation including the requirements under the money laundering regulations.

Q: Where can the definition of “works of art” for the purposes of the regulations be found?
A: Hi this is in the VAT act 1994 []

 Q: If a work of art is bought by an individual via an agent to we have to identify the ultimate benefical owner only or the agent as well? If the invidual and not the agent pays us
A: Yes you will need to identify the beneficial owner.

Q: Further to above question (by someone else) re: artists, my understanding is that an AMP is the ‘seller’. So if the seller is a gallerist, presumably an artist is a supplier and doesn’t need to comply. Is this understanding correct?
A: If you meet the definition of an AMP, regardless of whether you are a buyer or seller you must register and comply with the regulations.

Q: Further to above question (by someone else) re: conducting DD on customer supplying work of art AND buyer of said work of art: It sounds like DD applies in both directions. Is this correct?
A: The AMP must determine who their customers/clients are and conduct CDD on them regardless of whether they happen to be a buyer or seller.

Q: Will there be advice on how to store the copies of ID for each client – we are concerned with storing this data for GDPR purposes?
A: The processing of personal data in accordance with these regulations is lawful and necessary for the prevention of money laundering or terrorist financing and is for the performance of a task carried out in the public interest.

Q: Does the record keeping not contravene GDPR?
A: No.

Q: As an intermediary, do we need to run checks on both the customer and the seller?
A: If they are both your ‘customer’ then yes.

Q: What can we expect when reporting a transaction to the NCA? How long can we expect to wait to hear back from them?
A: Depends on the report. Suggest you check the NCA website.

Q: In the regulations it lists things which might be considered “suspicious” and it says that the presence of one risk factor does not mean that is reason alone to perform EDD. Is it down to the AMP themselves to decide if a transaction is high risk enough to perform EDD?
A: Yes although you would be expected to demonstrate why this risk was not sufficient for EDD.

Q: Do you have any material on how best to organise a standard due diligence procedure? Template forms etc.
A: No, as all businesses are different we do not provide templates. However our guidance will set out the minimum you need.

Q: Do you have to do CDD on the seller or just the buyer
A: Whichever is your customer, both if you’re an intermediary as they’re both your customer.

Q: how do we register to get the emails from HMRC?
A: This will occur when you register
[email protected]

Q: Do you have a full list of requirements that we need to obtain from our clients? I thought that this webinar would provide us with a list…
A: Not a full list as all businesses are different however our guidance will set our the minimum needed.

Q: is there a “hotline” or email or contact from HRMC we can contact when we have questions or are unsure?
A: You can email [email protected]

How can we help?

Get in touch with our team for support and advice