OFAC Warns Of Sanctions Risks Relating To High-Value Artwork

OFAC warned art market participants of the sanctions risks associated with art-related dealings, particularly transactions that involve artwork valued at over $100,000 (or "high-value artwork").

In an advisory, OFAC explained that the high-value artwork market is vulnerable to sanctions evasion because of (i) the relatively high incidence of confidential or anonymous transactions, (ii) the prevalence of shell companies conducting transactions involving high-value artwork and (iii) the subjective nature of art valuation. OFAC recommended that companies interacting with high-value artwork establish risk-based programs designed to ensure compliance with sanctions regulations.

OFAC also clarified its interpretation of the Berman Amendment to the International Emergency Economic Powers Act and the Trading with the Enemy Act, two laws that generally exempt from sanctions the import or export of "information materials," including "artworks." OFAC explained that it does