Why do people buy huge canvases with a few dots on from an arts unheard of for millions? I know it’s commonly used to launder money. Can someone explain how the process works?
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Everyone seems to have some schemey way of explaining how this is done, but it’s really quite simple as this article explains:
https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html
They basically take advantage of the art world because there is no record-keeping.
Example: I’m a criminal, I have $10,000,000 in drug money. I buy fine art (from a legitimate seller) that others agree is worth $10,000,000. I now have a $10,000,000 piece of art. Nobody needs to say who bought or sold it – the art gallery just processes the anonymous transaction.
Now I can either sell my new art for a profit down the road (for clean money) or take loans against it as collateral (banks accept art as assets). Loans are great because they are not taxable, and you only pay a small interest. Clean, tax-free drug money.
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