On Friday, 10th January 2020, the European Union’s Fifth Directive on Money Laundering required all European art market participants to be regulated, including galleries and dealers. The United Kingdom has adopted the same legislation, and Brexit does not affect the legal requirements and timeframe.
UK regulations require us to conduct customer due diligence on existing and new clients for any artwork sale above €10,000 (Euro) or currency equivalent. Similar 'Know Your Customer' (KYC) procedures are practised in the banking, property and auction house industries.
For individual clients, it is required to see an original or receive a certified copy of a photographic ID, such as a passport, in addition to recent proof of a permanent residential address.
For companies, it is required to see an original or receive certified documentation of company incorporation, directors, and the ultimate beneficial owner(s), for which personal identity documentation and proof of residential address are equally required.
Payment must only be received from, or sent to, the bank account of the person or legal entity named on the invoice. If purchasing an artwork as an agent / advisor acting on behalf of another person or entity, it is required to identify both the third party and the ultimate beneficial owner using the same types of documentation before completing the sale.
Patrick Davies Contemporary Art will verify this customer information based on standard “Know Your Customer” (KYC) procedures. We appreciate that this new process will initially involve additional administration for you. However, once the KYC process has been completed, you will not be required to submit any additional information for future transactions unless specific circumstances require this, such as a change of address, identity documents, or other relevant issues.
All information submitted to us will be treated as highly confidential and secure in compliance with KYC regulations and under the UK 2018 Data Protection Act, which implements the General Data Protection Regulation - GDPR.