The Bouvier case, involving Rybolovlev’s allegation against Bouvier for having cheated him of $380 million payments for artwork as a result of market collusion as triggered the search for loopholes for money laundering in the international art market. The case is simply an example of how unclear and secretive the international art market is. The market is closely linked with the banking system, which is why it has attracted money laundering. A set of rules were developed two weeks ago including KYC similar to that of the bank, placed on transactions more than 10,000 euros, which compel dealers and art agents to embark on due diligence for clients with huge funds. Other measures were developed alongside to force both buyers and sellers into compliance with the regulation.
Until now, the international art market has operated outside the regulatory framework, which made it possible for prices to be manipulated, money to be hidden or smuggled, and money laundering to be concealed. Rybolovlev’s complaint was the first in the art market, which has called the attention of the financial regulator, and the rules are meant to curb the illegal activities previously enjoyed by sellers and auction houses.
