US and EU Efforts to Combat International Money Laundering in the Art Market are no Masterpiece

Despite the lack of significant, tangible evidence of money laundering through fine art and antiquities dealers, the EU recently passed the Fifth Anti-Money Laundering Directive adding art dealers to the list of businesses obligated to comply with record keeping and due diligence requirements. Shortly thereafter, a similar measure was proposed in the U.S. House of Representatives. However, one-size-fits-all unilateral regulations will fail to protect the fine art and antiquities industry and will place crippling burdens on many art market participants. Instead, soft law agreements, used for most international finance regulation, should be the main tool to establish international standards. This Note suggests that the Financial Action Task Force, an international anti-money laundering institution, should create a flexible framework for risk-based regulations and international information sharing