Des Moines Sun

Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Senator John Fetterman (D-Pa.) have introduced the Art Market Integrity Act. This bipartisan bill aims to bring art dealers and auction houses under existing anti-money laundering and counter-terrorism financing regulations.

Grassley stated, "For decades, criminal enterprises have used America’s multibillion-dollar art industry as a personal piggy bank for money laundering schemes, terrorist financing and other nefarious activities. By requiring our nation’s art market to comply with existing anti-money laundering and counter-terrorism financing laws, this bipartisan legislation would keep art, and millions of dollars, out of the wrong hands."

Fetterman added, "Art should be for art-lovers, not terrorists and criminals. For too long, loopholes have allowed Russian criminal kingpins to evade sanctions and terrorists like Hezbollah to funnel money through art deals. I’m grateful to Senators Grassley, Whitehouse, and McCormick for working across the aisle to require art dealers and auction houses to perform basic due diligence. This needs to stop now."

The proposed act mandates that art dealers maintain records of high-value transactions while exempting artists or businesses with less than $50,000 in annual transactions. It seeks alignment with international standards followed by countries such as the United Kingdom, European Union, Switzerland, and China. The goal is to protect U.S. national security and economic integrity from threats posed by criminals using the art market.

Supporting senators include Dave McCormick (R-Pa.), Sheldon Whitehouse (D-R.I.), Bill Cassidy (R-La.), and Andy Kim (D-N.J.).

The U.S. art industry is valued at approximately $25 billion but currently lacks binding anti-money laundering standards set by the Bank Secrecy Act. A 2024 Treasury Department report highlighted vulnerabilities in the sector regarding money laundering risks.