A regulatory framework for art trade in the European union

Abstract

This thesis examines the regulatory framework applied to sales and acquisitions of cultural goods, especially artworks, within the European Union. The study is motivated by the growing economic significance of the art market and its increasing exposure to criminal misuse, including money laundering, illicit trafficking and terrorist financing. Special emphasis is placed on recently adopted EU legislation, the Fifth Anti-Money Laundering Directive and Regulation 2019/880 on the import of cultural goods, which mark a transition to a more coherent and preventative regulatory regime.

The research addresses four central questions: how the art market is regulated in the EU, to which crimes it is particularly vulnerable, whether the current regulatory framework is effective, and how it could be further developed. Using a non-doctrinal approach, the thesis systemises the applicable EU legislative framework and demonstrates that the art market’s structural characteristics, including the portability of artworks, ambiguous valuation practices and historically fragmented oversight, create vulnerabilities to criminal exploitation.

The thesis concludes that while the Union framework is now more comprehensive and better suited to identify risks, the regulatory effectiveness remains dependent on consistent implementation across Member States, adequate enforcement capacity and meaningful cooperation between customs authorities, financial intelligence units and cultural heritage bodies. Variations in national practice are likely to constrain the uniform application of the regulations. Further harmonisation, strengthened oversight of storage facilities and clearer due diligence standards are required to ensure both market integrity and the effective protection of cultural heritage.