Art Market Monitor

Global Coverage ~ Unique Analysis

  • Contact Us
  • Podcast
  • Newsletter
  • AMMpro

Does a Former US Atty Have a Better Example of Art & Money Laundering than Basquiat’s Hannibal?

March 1, 2017 by Marion Maneker

Basquiat, Hannibal one of the very few works of art ever identified by authorities to have been involved in a money-laundering case

This is getting ridiculous. The Wall Street Journal’s Risk & Compliance Journal trots out Sharon Cohen Levin, who is now a partner at WilmerHale, to speak darkly about the threat of art and money laundering because she used to be the head of the US Attorney’s office money laundering and asset forfeiture unit.

In that role, you would think that Ms. Cohen Levin would have more examples of how art has been used for money laundering than the dead horse of Jean-Michel Basquiat’s Hannibal which was seized when Brazilian banker Edemar Cid Ferriera shipped it to the US claiming it was worth $100.

Based on this one case, the Journal takes an unproven conclusion as its premise:

Part of the reason art has become an attractive vehicle for money laundering is that other channels have been narrowed by tighter regulation, tougher law-enforcement efforts and stronger compliance, experts say.

“The more tightly the international financial sector is regulated, the more funds flow into the art world,” said Fausto Martin De Sanctis, a Brazilian judge who wrote a book in 2013 called “Money Laundering Through Art.”

Judge de Sanctis may have more examples to fill his book. The Journal doesn’t cite them. Instead they go to the Jho Low case, which we’ve pointed out is problematic to use as an example of money laundering.

Meanwhile, the full story of Cid Ferreira’s Hannibal illustrates just why it is unlikely that a great deal of money laundering is accomplished using art.

After the US seized the painting and returned it to the Brazilian government, the work as consigned to Sotheby’s. The first time it was offered at auction, it failed to find a buyer. Months later, it was auctioned in London and sold for more than expected.

Now imagine Cid Ferreira had not been caught. He needs money. He has a Basquiat stashed in a New York storage facility. Is he going to wait six months for Sotheby’s to hold an auction? It doesn’t sell. He has to wait another year before they offer it in London. He might be able to get money loaned against the work, but then he’ll be subject to AML protocols.

As the Journal’s story shows, the auction houses are part of the “international financial sector” that is tightening its controls. So Cid Ferreira’s best option would be to see if he can sell it privately. If the US Attorney’s office had thought it was a good use of their time and resources, they would have subpoenaed dealers’ records to see how many other high value paintings were connected to possible money laundering. New York’s Attorney General did just that to make several high profile cases involving Gagosian Gallery, Aby Rosen, Victoria Gelfand and Michael Shvo.

Prosecutors live to make cases that get press. Ms. Cohen Levin ought to have more than Edemar Cid Ferreira to show for her campaign against money laundering through art if she really believes it is a significant problem.

Art World’s Response to Money-Laundering Concerns Draws Critics (WSJ)

More from Art Market Monitor

  • The New York Times Still Doesn’t Get Art & Money LaunderingThe New York Times Still Doesn’t Get Art & Money Laundering
  • Art Just Doesn’t Show Up in Money Laundering CasesArt Just Doesn’t Show Up in Money Laundering Cases
  • Is the Art Market Big Enough to Launder Money?Is the Art Market Big Enough to Launder Money?
  • Brazilian Swindler's Art GameBrazilian Swindler's Art Game
  • Singapore and Six Other Nations Continue Investigation into 1MDB ProceedsSingapore and Six Other Nations Continue Investigation into 1MDB Proceeds
  • Malaysia’s 1MDB Probe Re-Opened After Surprise Election DefeatMalaysia’s 1MDB Probe Re-Opened After Surprise Election Defeat
  • Print
  • Tweet

Filed Under: Fraud, Theft & Restitution, General

Advertise on Art Market Monitor with Nectar Ads

Top Posts

  • Agnes Gund & Oprah Winfrey Lead Auction of Women Artists at Sotheby's to Benefit Miss Porter's School
  • Sotheby's Unveils Plans for New Galleries at York Ave.
  • Four of Picasso's Women Valued at $28m Come to Christie's from Rose-Walters Collection
  • Christie's Announces $70m Picasso Self Portrait
  • David Hockney's $20m Pacific Coast Highway & Santa Monica
  • Art Moscow Does $6m in Sales
  • Sotheby's Celebrates Bauhaus's Centenary with 25 Works in Imp-Mod Sales
  • What Happens to Sotheby's After the Activists Get What They Want?
  • Sotheby's Brings $30m Pollock to New York
  • Sotheby's Basquiat Mini-Collection with $25m Pollo Frito + 3 Other Works


  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • Art Loans
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
Advertise on Art Market Monitor