UK Treasury announces that artists will not be subject to new anti-money laundering regulations

    After much deliberation the UK government has announced that this country’s new Anti-Money Laundering Regulations, which came into full force on 10 June 2021, will not apply to artists.

    The original text of the law defined an Art Market Participant (AMP), to whom the new Anti-Money Laundering Regulations apply, in such a way that artists who sell their work directly to collectors and others, were at risk of being implicated by the regulations. This would have resulted in an obligation for artists to register with HMRC for a fee, and to fulfil a host of requirements when selling works.

    DACS led discussions with HMRC about the implications of this for artists, and lobbied for an amendment to the government’s definition of an AMP.  It is our strong belief that the law as it was originally proposed would have caused artists undue administrative burden, and would also have risked compliance issues due to the complexity of regulations aimed at professional money laundering operations.
     
    We are therefore happy to share news of HM Treasury's decision that artists do not fall within the definition of an AMP and therefore do not need to comply with the cumbersome regulations distracting from the business of being an artist creating work.
     
    DACS had previously discussed the possible implications for artists being caught by the Regulation with the Responsible Art Market London Committee, who highlighted the lack of consultation of artists and their representatives. This led to DACS informing HMRC about the potential negative and disproportionate impact these regulations would have on individual artists.
     
    Due to the timing of this clarification by HM Treasury, some artists may have already registered with HMRC and paid the £300 registration fee.

    In this case, please contact HMRC at MLRCIT@HMRC.GOV.UK to arrange a refund.

    Posted on by Anita Lawlor