The British Art Market Federation (“BAMF”) Guidance was updated for UK Art Market Participants (“AMPs”) on 30th June 2022. HM Revenue & Customs (“HMRC”) as regulator sent an email update with key changes to AMP businesses registered for supervision.
The list of those changes is copied below and several points are expanded upon below the list.
Please note that ArtAML has identified two differing points to the updated Guidance as being fundamental to Customer Due Diligence (“CDD”) for AMPs. That article is provided below under ‘Further reading’.
Download the BAMF Guidance here and discover details referenced in HMRC’s list, using provided reference points.
|Key changes include:|
Insight into several points above:
Risk Assessment & Policy.
It is now explicit that not only must AMP businesses must have these in place, but that they need to be refreshed at minimum once per annum.
Exclusion of artists.
This is confirmed in the Guidance (regardless of the artist being a sole trader or company). Note that legal language is used for this point, so it is not easy reading.
Rental of art:
This can be caught if at the end of the rental period, the art will become the property of the renter. Therefore, it is vital to establish what the total value will be upfront, in addition to title being transferred at the end. If title is to change and the amount is 10k+ EUR, CDD would need to ne conducted prior to commencing the business relationship.