KYC, or "know your customer," is a process used by businesses to verify the identity of their clients and assess their potential risks for money laundering or financing terrorism. AML, or "anti-money laundering," refers to the laws, regulations, and procedures that businesses put in place to prevent and detect money laundering.
News Stories on KYC in Art & Jewelry Sector since 2019
There have been several news stories in recent years about art and jewelry brands implementing KYC and AML measures in their businesses. For example:
- In 2019, it was reported that the jewelry brand Tiffany & Co. had introduced a new KYC policy for its online sales. The policy required customers to provide identification and other documentation to verify their identity and address before making a purchase.
- In 2020, the Art Dealers Association of America (ADAA) announced that it had adopted new AML guidelines for its member galleries. The guidelines included recommendations for conducting due diligence on clients, implementing internal controls and procedures, and reporting suspicious activity.
- In May 2020, the online jewelry retailer James Allen implemented a new KYC policy for its customers. The policy required customers to provide identification and other documentation to verify their identity and address before making a purchase. This was in response to increased regulatory scrutiny and the risks of money laundering in the jewelry industry.
- In June 2020, the luxury fashion brand Louis Vuitton announced that it was implementing a new KYC policy for its online sales. The policy required customers to provide identification and other documentation to verify their identity and address before making a purchase. This was part of the company's broader efforts to enhance its AML controls and protect against the risks of money laundering.
- In 2021, the luxury fashion brand Chanel was among several companies that were identified as having failed to properly implement AML controls in their businesses. The company was fined by French authorities for its failure to properly monitor transactions and report suspicious activity.
Limitations to research on KYC in art & jewelry industry
It is difficult to provide recent statistics on the prevalence of KYC in the art and jewelry industries, as this information is not widely published or readily available. However, it is likely that more and more art and jewelry brands are implementing KYC measures in their businesses in response to increased regulatory scrutiny and the risks of money laundering.
In general, the art and jewelry industries are considered to be at high risk for money laundering due to their high value, low liquidity, and lack of transparency. Art and jewelry can be used to transfer large amounts of illicit funds without raising suspicion, and they can be easily stored or transported. As a result, many governments and regulatory bodies have put in place specific requirements and guidelines for the art and jewelry industries to follow in order to prevent and detect money laundering.
Final Word
Overall, it appears that more and more art and jewelry brands are recognizing the importance of implementing KYC and AML measures in their businesses, in order to protect themselves and the broader financial system from the risks of money laundering and other forms of illegal finance.
