Anti-Money Laundering

PATRICK DAVIES CONTEMPORARY ART
Anti-Money Laundering & Know Your Customer Policy

On 10 January 2020, the European Union’s Fifth Anti-Money Laundering Directive (5AMLD) came into force, requiring all art market participants — including galleries and dealers — to comply with anti-money laundering (AML) regulations for the first time. The United Kingdom transposed the equivalent provisions into domestic law by amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which took effect on the same date. These requirements remain in full force in the UK and are unaffected by the UK’s departure from the European Union.
 
UK regulations require Patrick Davies Contemporary Art to conduct Customer Due Diligence (CDD) on both new and existing clients in connection with any sale of artwork valued at €10,000 or more (or the equivalent in any other currency), whether settled in a single transaction or in a series of linked transactions. These obligations are broadly comparable to the ‘Know Your Customer’ (KYC) procedures already well established in the banking, property, and auction sectors.
 
For individual clients, we are required to obtain:
  • A current, government-issued photographic identity document (for example, a valid passport or driving licence) — either the original for inspection or a certified copy; and
  • Recent proof of permanent residential address, such as a bank statement or utility bill issued within the preceding three months.
 
For corporate clients and other legal entities, we are required to obtain certified documentation confirming:
  • Company incorporation (for example, a Certificate of Incorporation or equivalent);
  • The names and details of current directors; and
  • The identity of all Ultimate Beneficial Owners (UBOs) — typically individuals holding 25% or more of the shares or voting rights — for whom the same personal identity and proof-of-address documentation as described above is also required.
 
Payments must only be made from, or received into, the bank account of the person or legal entity named on the relevant invoice. Patrick Davies Contemporary Art is unable to accept payments from, or make payments to, unrelated third-party accounts.

Where a purchase is made by an agent or advisor acting on behalf of another person or entity, we are required to identify both the agent and the ultimate beneficial owner, using the same categories of documentation, before any transaction can be completed.

 

We appreciate that completing this process may initially require some additional administration. However, once your KYC documentation has been verified and placed on record, no further submission will ordinarily be required for future transactions with us. Updated documentation may be requested only where specific circumstances arise, such as a change of address, the expiry of an identity document, or a material change in beneficial ownership.

 

All information provided to us is held in strict confidence. Personal data is processed and stored in accordance with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. We will not share your information with any third party except where required by law or by a competent regulatory authority.