Known as 5MLD, this regulation took effect on January 10, 2020. It requires auction houses, art galleries and dealerships to conduct stricter due diligence on buyers who purchase works of art above a threshold of €10,000.
The regulation requires Art Market Participants (AMPs) – anyone trading in or acting as an intermediary in the trade of works of art that sell for above the threshold – to register with HMRC and a pay a fee.
The deadline for registering is June 10 this year.
In a statement, HMRC said businesses should have started meeting the requirements of the money laundering regulations since January 2020 and that it “recommends that you register as soon as possible so that they can provide a more effective service for you”.
HMRC said it can take various measures from warning letters to criminal prosecution if businesses do not comply.
Last month HMRC renamed its Anti Money Laundering Supervision team as Economic Cr ime Supervision (ECS).