Grassley, Fetterman Introduce Bipartisan Bill to Crack Down on Art Market Money Laundering, Terrorist Financing

Grassley, Fetterman Introduce Bipartisan Bill to Crack Down on Art Market Money Laundering, Terrorist Financing

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. John Fetterman (D-Pa.) today introduced the Art Market Integrity Act. The bipartisan legislation would require art dealers and auction houses to comply with existing anti-money laundering and counter-terrorism financing regulations.

"For decades, criminal enterprises have used America's multibillion-dollar art industry as a personal piggy bank for money laundering schemes, terrorist financing and other nefarious activities. By requiring our nation's art market to comply with existing anti-money laundering and counter-terrorism financing laws, this bipartisan legislation would keep art, and millions of dollars, out of the wrong hands," Grassley said.

"Art should be for art-lovers, not terrorists and criminals," Fetterman said. "For too long, loopholes have allowed Russian criminal kingpins to evade sanctions and terrorists like Hezbollah to funnel money through art deals. I'm grateful to Senators Grassley, Whitehouse, and McCormick for working across the aisle to require art dealers and auction houses to perform basic due diligence. This needs to stop now."

The Art Market Integrity Act would:

• Require art dealers and auction houses to maintain records and report on high-value art market transactions, exempting artists and businesses with under $50,000 in annual art transactions;
• Align the United States with international standards adopted by the United Kingdom, European Union, Switzerland and China; and
• Protect the United States' national security, economic integrity and multibillion-dollar art market from criminals, terrorists, cartels and other bad actors.

Grassley and Fetterman are joined by Sens. Dave McCormick (R-Pa.), Sheldon Whitehouse (D-R.I.), Bill Cassidy (R-La.) and Andy Kim (D-N.J.).

Download the full bill text HERE.

Background:

The United States' art industry is valued at around $25 billion and is the largest of its kind globally. Despite this, our art market is not currently bound by the anti-money laundering and counter-terrorism financing standards set by the Bank Secrecy Act.

In 2024, the Treasury Department identified America's art market as being particularly susceptible to money laundering and sanctions evasion. High-profile cases have further highlighted the urgent need for art market reform, including the indictment of Hezbollah financier, Nazem Ahmad, who used art to evade terrorism-related sanctions to the tune of $160 million.

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