On July 23, U.S. Senator John Fetterman introduced the Art Market Integrity Act, a bill that would apply anti-money laundering (AML) and counter-terrorism financing regulations to art dealers, auction houses, galleries, advisers, consultants, custodians, museums, collectors, and other intermediaries in the art market. The legislation amends the Bank Secrecy Act, requiring these entities to conduct client due diligence, maintain records, and report suspicious transactions. It exempts artists selling their own work, nonprofits, and businesses with under $50,000 in annual art transactions. The bill is co-sponsored by Senators Chuck Grassley, Sheldon Whitehouse, Bill Cassidy, Andy Kim, and David McCormick.
The bill matters because it aims to close loopholes that have allowed the U.S. art market to become a haven for illicit financial activities, including sanctions evasion and terrorist financing. The Treasury Department has identified the art market as particularly vulnerable to money laundering, and recent high-profile cases—such as Nazem Ahmad's $440 million scheme funding Hezbollah and Russian oligarchs evading sanctions—underscore the urgency. If passed, the U.S. would align with international standards already adopted by the UK, EU, and Switzerland, potentially reshaping how art transactions are monitored and regulated globally.