Buying art for clients is a mine field of anti money laundering regulation. Fortunately, the BIID has launched a campaign to support interior designers through the process
The British Institute of Interior Design (BIID) has launched ‘10,000 Changes Everything’, a new campaign to raise awareness among interior designers of anti-money laundering (AML) requirements that may apply when sourcing, purchasing or arranging the purchase of artworks for clients
The campaign responds to the need for clear, practical guidance to support interior design professionals in understanding their obligations under the regulations and taking the necessary steps to comply with them. In many cases, interior designers may not realise that activities such as recommending artworks, liaising with galleries, arranging purchases or acting as an intermediary on behalf of a client can bring their business within the scope of the UK’s AML regulations
The regulations generally apply where a designer is involved in a transaction involving artwork worth £10,000 or more, including certain linked transactions. This may apply to a single artwork or to a series of purchases connected to the same client, project or overall arrangement
Where the relevant requirements apply, an interior design practice may be considered an ‘Art Market Participant’ and may be required to register with HM Revenue & Customs (HMRC). Understanding when these requirements apply is therefore an important part of managing a compliant design practice
“For many interior designers, the rules surrounding artwork transactions and anti-money laundering responsibilities remain unclear, leaving practices uncertain about when the regulations apply and what action they need to take,” comments Katherine Elworthy, BIID Chief Operating Officer. “Through 10,000 Changes Everything, we want to give our members clear, practical information so they can better understand their responsibilities and act where necessary. Our aim is to ensure that designers feel confident to navigate these regulations and that no interior design practice is caught unawares.”
To support the profession, the BIID has previously published articles and hosted webinars on AML requirements relating to the art market. However, continued conversations with interior designers have highlighted the need for greater awareness and more accessible information on how the rules may apply to design practices
As part of the new campaign, the BIID will increase information sharing across its communication channels, host additional webinars and launch a dedicated webpage, bringing together guidance and practical resources for its members. This will include a useful checklist to help interior designers determine whether they need to register their practice with HMRC, guidance on what qualifies as a work of art within the UK’s anti-money laundering regulations and example scenarios of when designers may have obligations under the regulations
The BIID has also launched a free helpline for Anti Money Laundering compliance advice exclusively for its professional members. The helpline will provide support to interior designers seeking to understand whether the regulations may apply to their practice and what steps they may need to take to become compliant
Together, these additional resources will help designers understand when the rules may apply, what their responsibilities are and where to find further guidance
Mark Dodgson, Secretary General of The British Antique Dealers’ Association (BADA) commented: “I very much support the BIID’s AML education campaign. As BADA’s antique dealers already know, when sourcing works of art on behalf of clients it is important to ask yourself whether anti-money laundering checks need to be carried out, and whether you should now be registered with HMRC.”
To learn more about the legal regulations that apply to the sourcing or purchasing of artworks and how it might apply to interior design practices, visit the dedicated 10,000 Changes Everything campaign pages on the BIID website
