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Congress Regulates the Antiquities Market – and Perhaps the Art Market – for AML Compliance: A Guest Blog | Ballard Spahr LLP
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Ruins of the medieval Armenian cathedral at the ancient site of Ani in eastern Turkey Dallet-Alba/Alamy
An agreement between Turkey and the United States to combat the illicit trade in antiquities and other cultural property has divided historians and preservationists over whether the accord will curb smuggling or undermine minority heritage that faces neglect or worse.
A memorandum of understanding signed last month imposes US import restrictions on archaeological objects 250 years or older that the Turkish government has not licenced to leave the country. The aim is “to reduce the incentive for pillage of irreplaceable archaeological and ethnological material representing Turkey’s cultural heritage,” according to the agreement, which becomes binding once the governments notify each other that their procedures for enforcement are ready.
New York: The antiquities trade, which regulators have long feared provided fertile ground for money laundering and other illicit activities, will be subject to greater oversight under legislation passed by Congress on Friday when it overrode President Donald Trump s veto.
The provisions tightening scrutiny of the antiquities market were contained within the sprawling National Defense Authorization Act, which Trump vetoed last week and which the House and Senate voted to override on Monday and on Friday.
Regulators have long worried that the opacity of the antiquities trade, where buyers and sellers are seldom identified, even to the parties in a transaction, made it an easy way to shroud illicit transfers of money. The new legislation empowers federal regulators to design measures that would remove secrecy from transactions.