Abstract
The US art market is the largest in the world, with an estimated total worth of $67.8 billion. In the last decade, art market transactions have skyrocketed in value, with works like Leonardo da Vinci’s Salvator Mundi selling at auction for $450 million, making it the most expensive individual work to ever be sold. However, unlike other markets that handle similarly high-value assets and commodities, the US art market is largely unregulated. The lack of adequate formal regulation, coupled with a culture of anonymity, has allowed for the US art market to become a hotbed for financial crime, such as money laundering and tax evasion. Legislative attempts to address the pervasiveness of financial crime in the US art market have either failed, excluded entire sections of the market, or offered piecemeal recommendations that carry no regulatory authority to enact change. To effectively combat financial crime in the US art market, a comprehensive, multipronged approach is necessary. First, all high-value art market participants should be recognized as financial institutions and subject to financial transparency regulations. Second, newly implemented regulations should synchronize with international regulatory standards to deter money laundering on domestic and international fronts. Lastly, an international database for art market participants should be established to standardize anti-money laundering practices and flag suspicious financial activity abroad. Together, these measures would shield the US art market from financial crime and protect art’s cultural integrity and value.
Recommended Citation
Sage Espindola,
Conduits for Crime: How the US Art Industry Has Become a Market Ripe for Financial Crime,
90 Brook. L. Rev.
621
(2025).
Available at:
https://brooklynworks.brooklaw.edu/blr/vol90/iss2/7
