Secrecy is “pervasive” in the art industry. Specifically: “A large number of art sales happen through intermediaries referred to as ‘art advisors’ who can represent both purchasers and sellers. In a typical transaction, a purchaser may not ask who owns the piece of art they are purchasing; the seller may not ask for whom it is being purchased or the origin of the money. And in general an art advisor would be reluctant to reveal the identity of their client for fear of being cut out of the deal and losing the business.”
As a result, “auction houses treat an art agent or dealer as the principle purchaser of art, even if they [have] reason to believe they were working with an undisclosed client.” This creates a “significant AML [anti-money laundering] vulnerability” because “this practice enables the auction house to perform due diligence on the art agent or dealer instead of identifying and evaluating the undisclosed client.”
No insinuation aimed at today's sale, but I've become increasingly interested in how dark money might now be sloshing around watch auctions for a good rinse.
Source: https://www.ballardspahr.com/-/media/files/senate-report-on-art-and-ml.pdf (147 pages, pdf)