Question 1

A look back at the Customs 2023 AML self-assessment campaign

Accepted Answer

Between June and October 2023, Customs conducted a self-assessment campaign among the professionals under its supervision, aimed at achieving two main objectives:

For professionals: to assess their level of knowledge of the regulations and the compliance of their LCB-FT system on a declarative basis.
For customs: to obtain information on the sector's general understanding of the regulations, and to gain a better understanding of the market (frequency of transactions over €10,000, average size of players, etc.).

The campaign has shown that the industry is well aware of the risks, and that significant progress has been made in raising awareness.

However, significant gaps remain in the implementation of obligations:

Organizational: Fewer than half of respondents have formalized their risk classification or taken appropriate training.
Operational: Weaknesses in identity verification, knowledge of business relationships, and monitoring of operations, as well as in compliance with international sanctions and asset freezes.

These results underline the progress made, while highlighting areas requiring improvement.

A new self-assessment campaign will be carried out in 2024 with professionals who did not respond in 2023!

To find out more: www.douane.gouv.fr

Question 2

What are the main stages in your compliance process?

Accepted Answer

Compliance is an essential pillar in guaranteeing not only legality, but also the safety of operations.

At Eunomart, we understand that this process can seem daunting. As the famous saying goes, “Rome wasn't built in a day”. It's crucial to start somewhere and progress step by step.

To help you along the way, we've put together a step-by-step guide to achieving full compliance!

1. Understand and assess your global business

The first step is to draw up a risk map. This process, to be carried out once a year, helps to identify and highlight potentially risky areas in your business. Next, it's important to establish a risk classification and determine the appropriate levels of vigilance for each category. Finally, an internal protocol should be drawn up to document all the actions and procedures implemented within your facility.

2. Assessing the risks associated with your objects and vendors

Next, turn your attention to assessing the risks associated with your objects and vendors. This includes identifying risk factors concerning the provenance of works or the identity of vendors. Rigorous analysis at this level is crucial to avoid any involvement in fraudulent or illegal activities.

3. Analyze your buyers' risks

The next step is to analyze the risks associated with your buying customers. For every customer making purchases over €10,000, whether in a single transaction or cumulatively, you need to compile a risk assessment

Question 3

Commission Nationale des Sanctions: new professionals sanctioned.

Accepted Answer

The Commission Nationale des Sanctions (CNS) continues to play a central role in regulating the activities of art market professionals in France. Whether you are a gallery owner, auctioneer or antique dealer, you are subject to strict obligations to combat money laundering and the financing of terrorism (LCB/FT). These obligations include verifying customer identity, reporting suspicious transactions, and implementing internal compliance procedures.

In the event of non-compliance, the CNS has the power to impose sanctions, ranging from warnings to substantial fines.

New Art Market Professional Sanctioned:

Recently, an art market professional was severely sanctioned by the CNS for failing to comply with its AML/CFT obligations. The auction house was fined heavily for failing to put in place the necessary measures to verify the identity of its customers during high-value art transactions. This negligence was seen as a serious breach of legal obligations, potentially exposing the art market to money laundering risks.

The CNS pointed out that, despite previous warnings, this professional had still not put in place the controls required to identify the beneficial owners of transactions. In a way, this sanction is a warning to all art market professionals.

Keep abreast of sanctions!

For you, art market professionals, it is essential to stay

Question 4

How to make a TRACFIN declaration

Accepted Answer

Does one of your customers seem to be acting fraudulently? Do you think you should submit a suspicious transaction report to TRACFIN? Here's an outline of what you need to do. Don't forget to keep the acknowledgement of receipt of your declaration, which will protect you in the event of a problem.

You can send the declaration by post, by remote declaration on the ermes platform or, exceptionally, verbally.

The declaration of suspicion must then be accompanied by the contact details of the authorized declarant, theidentification detailsof the customer or beneficial owner, the nature and purpose of the business relationship, and any supporting documents that may be useful to TRACFIN.

The report must be signed by the declarant and include: theprecise analysis that led [the art pro

Question 5

Monaco added to the GAFi grey list

Accepted Answer

On Friday June 28, 2024, the Financial Action Task Force (FATF) placed Monaco and Venezuela on its “enhanced surveillance” gray list. In a press release, the GAFi specified that these two territories required enhanced surveillance.

Although Monaco has made significant progress, GAFi stressed the importance of improving the fight against tax fraud, offshore money laundering and the application of dissuasive sanctions. Monaco had already been called to account in January 2023 for improvements in these areas.

What is the GAFi?

The Financial Action Task Force (FATF) is an intergovernmental organization created in 1989 by the G7.

Its main objective is to develop and promote national and international policies to combat money laundering, terrorist financing and other threats to the integrity of the international financial system.

The FATF sets standards and monitors their effective implementation by member countries, assessing their regulatory frameworks and providing recommendations to improve their prevention and enforcement systems.

And what is the “grey list”?

The Financial Action Task Force's (FATF) “grey list” comprises jurisdictions that have strategic shortcomings in the fight against money laundering and terrorist financing, but have committed to addressing these shortcomings.

These countries are placed under increased scrutiny and must implement action plans to improve their regulatory and operational frameworks to compl

Question 6

Key facts about LCB-FT

Accepted Answer

On the recommendation of the FATF (Financial Action Task Force), the European Union has adopted Directives to implement harmonized measures to combat money laundering and the financing of terrorism within the Union, the first of which dates back to June 1991.

The Directives now require you, players in the art and luxury goods market, to put in place an organization, procedures and internal control measures to enable you to detect atypical transactions and inform TRACFIN, the financial intelligence unit.

Lawmakers have taken the view that you, as art market professionals, are in the best position to detect signals that a transaction, a customer or a work of art could be sensitive. This is why they have imposed a number of vigilance measures on you.

Don't panic, Eunomart will guide you through the implementation of these procedures!

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