In order to carry out activities as an Art Market Participant in the UK, you need to register with HMRC. This is akin to an application process, as it is possible to be rejected. This has been experienced by some Art Market Participants we know who didn’t have everything in place. Common sticking points include not having conducted a money laundering risk assessment with corresponding AML Policy, nor having undertaken AML training. Some good news is that the ArtAML solution includes supporting you to put these essentials in place.
First things first: We’ve created a template for the HMRC registration online submission form to save you time and alleviate frustration. Prepare your answers to all sections before starting a live submission entry, to ensure that everything is ready to go.
After you’ve downloaded our HMRC registration guide below – available as an excel sheet and PDF – head to our Instagram IGTV channel and watch this video with our CEO Susan J Mumford, who walks you through the process.
Top tips for registering:
>>> Unless you accept cash payments of 10K+ EUR, select ‘Art Market Participant‘ only for regulated sector. (There have been issues with AMP businesses also selecting ‘High Value Dealer’ a.k.a. HVD, which is specifically for accepting cash for 10K+ EUR.)
>>> You will be asked about having AML Training as well as your Risk Assessment and AML Policy (incl. policies, controls & procedures) in place. Get in touch with us to find out how we can help you with these – as without them, your application is likely to be stopped.
>>> You need to register all Directors & Officers (Company Director, Company Secretary) as ‘Responsible Persons’. Additionally, those individuals should have training, whether that’s certified by the likes of ArtAML or internal training according to responsibilities and involvement with the business.
>>> When asked about the Fit and Proper Test, the answer as an AMP registrant is “No”. The reason is that there are two ways that regulated businesses qualify for supervision: ‘approval’ OR ‘fit and proper test’. The former applies to AMPs, however confusingly, you will be asked about this during the registration process – even though it doesn’t apply.
>> It’s paramount that you meet your obligation to have a AML Risk Assessment and Policy (with Policies, Controls and Procedures). As of November 2023, applicants who state ‘no’ to having documented Risk Assessment, Policies, Controls and Procedures can now be rejected after 21 days.
>>> The following link is for HMRC registration and renewal for Money Laundering Supervision.
Important note: The associated Organisation Government Gateway ID is specific to ML Supervision (and separate to the Government Gateway for Corp Tax, VAT, PAYE, etc). https://www.gov.uk/guidance/register-or-renew-your-money-laundering-supervision-with-hmrc
Further reading —
>> Register for or renew Money Laundering Supervision – and how to contact HMRC: for UK Art Market Participants
>> AML Training: A legal requirement for Art Market Participants
>> Risk Assessment and Policy: A legal requirement for Art Market Participants
This post was originally published in 2020 and was last updated in November 2023.