On 10/30/2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an advisory to highlight sanctions risks arising from dealings in high-value artwork associated with persons blocked pursuant to OFAC’s authorities, including persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List). In the advisory, it was explained that high-value artwork transactions may play a role in blocked persons accessing the U.S. market and financial system in violation of OFAC regulations. the advisory also describes characteristics of the market for high-value artwork that pose sanctions risks; emphasizes to art galleries, museums, private art collectors, auction companies, agents, brokers, and other participants in the art market the importance of maintaining a risk-based compliance program to mitigate such risks; and highlights that what is commonly described as the “Berman Amendment” to the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) does not categorically exempt all dealings in artwork from OFAC regulation and enforcement.
The full advisory can be found here.