* YOUR QUESTIONS ANSWERED *
Thank you again for attending the webinar on Tuesday 26 September.
During the event we received a tremendous number of questions from Art Market Participants (AMPs) in the audience. While time limited responses to all of these in the live session, as promised, Rena has addressed the remaining questions from anonymous attendees here below:
Questions & Answers
Q: Where US subsidiaries of UK companies exist, how are interventions conducted on those US subsidiaries?
A: We have yet to see HMRC ask to conduct interventions on the subsidiaries of UK AMPs, however, one might speculate that HMRC would simply ask the UK parent company for the information.
Q: To do Customer Due Diligence (CDD) for a private company, is it always mandatory to have ID of the ultimate beneficiary or only risked-based?
A: As with nearly every situation involving CDD, the answer to an 'always' or 'never' question is usually, it depends. This is true in this case: the answer depends on the individual facts and circumstances.
Q: What about American-based third parties, i.e. Artsy, Saatchi Art, etc etc? It's not clear that they are registered. How do we stand?
A: The HMT Guidance regarding online service providers includes:
14. An intermediary could therefore be an agent or an art dealer, which could include an art gallery, auction house or an online sales platform. An intermediary could themselves be such an entity, or might simply be a person or entity paid by the seller or buyer for whom they act.
15. An online sales platform will be an intermediary, if they are conducting relevant activity in the UK and receive commission in relation to transactions (sales or purchases of works of art) taking place on their platform. This may also include online sales platforms that are based outside the UK but are acting as an intermediary for their UK customers. If such a non-UK based platform cannot access the registration portal at GOV.UK, they should email MLRCIT@hmrc.co.uk.
An online service provider acts as an intermediary if they are an active participant, usually understood to be active in the execution or negotiation of the transaction. So, each service provider should register if they are an intermediary. However, there are challenges to non-UK entities who may not be able to register with HMRC due to technical issues. In these cases, we understand that the non-UK entity should comply even if they are not able formally to register. Thus, once again, these need to be considered on a case-by-case basis.
Q: If you go back through CDD to 2020 in preparation for the intervention in order to fill any gaps but find there is a high-risk client but the property has been released, what is the procedure then?
A: If during your own risk assessment you discover a weakness or gap in your CDD, do your best to complete the CDD and document your steps and reasoning. You should also consider whether it is appropriate to file a Suspicious Activity Report (SAR). Finally, if the inadequate CDD discloses any weaknesses in your CDD procedures, it would be important to implement corrective procedures so that the gaps/weaknesses do not occur in future, and to document these new procedures.
And a last one from us:
Q: How can FCS Compliance help my business?
A: No matter what your AML requirement, our team of highly-experienced experts are on hand to support you. They can offer the right services to help you meet all your legal AML obligations.
Please contact our friendly team today:
Simply call: +44 (0)207 924 7979 or email email@example.com and we will get in touch.
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