identify PEPs, SDNs, and other high-risk individuals and organizations.[1] She told the Subcommittee that Sotheby's "has never transacted with an SDN or blocked person."[2] She asserted the company has "never had a hit and never inadvertently transacted with one."[3]
The Chief Compliance Counsel also explained that Sotheby's due diligence at the time associated with the Subcommittee's review into a new client or transaction involved a risk-based analysis, which factored in the value of the transaction, the profile on the person, and the legitimacy of why the person has the artwork or the funds to purchase the artwork.[4] At the time, Sotheby's was aware of the risk that the buyer may not be the UBO and dealt with that risk by reviewing the information to which it had access and kept an eye out for red flags.[5] She noted there is a significant competitive advantage in the art world to having information about who owns what art, and intermediaries in the art world frequently do not want to disclose who their clients are because they do not want to be cut out of the deal.[6] At the relevant time, Sotheby's trusted some clients to do their own KYC of their transactions parties. And Sotheby's will walk away from a deal if it was not comfortable with the responses it received.[7]
2. Christie's
Global Anti-Money Laundering and Anti-Terrorist Financing Policy. Christie's first established an AML policy in December 2008,[8] and updated it in 2014 and 2015,[9] The current AML policy was updated and finalized in March 2018 (the "2018 AML Policy").[10] Christie's former Global Head of Compliance in London explained that the AML policy matured over the years.[11]
The 2018 AML Policy established know your client (or "KYC") procedures as a "key component of Christie's AML Policy. This involves collecting, verifying and keeping records of the identity of all clients."[12] The document states that "Christie's will request sufficient identification documentation from clients to verify their identity using a risk-based approach. Where there is a greater perceived risk
- ↑ See Refinitiv World-Check Risk Intelligence, Refinitiv, https://www.refinitiv.com/en/products/world-check-kyc-screening.
- ↑ Subcommittee Briefing with Sotheby's Employees (Oct. 25, 2018).
- ↑ Id.
- ↑ Id.
- ↑ Id.
- ↑ Id.
- ↑ Id.
- ↑ Christies-PSI-00000286-89.
- ↑ Christies-PSI-00000294-99 (2014); Christies-PSI-00000300-05 (2015).
- ↑ Christies-PSI-00000001-006.
- ↑ Subcommittee interview of Christie's former Global Head of Compliance (Jul. 15, 2019) (also referred to below as Christie's "Compliance Counsel").
- ↑ Christies-PSI-00000001-006.
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