Abstract

Australia's Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), effective 1 July 2026, extends the national AML/CTF regime to designated non-financial businesses and professions. While art dealers are not expressly targeted by the reforms, the statutory definitions give rise to significant interpretive challenges at the intersection of art law and the regulatory framework, with potentially far-reaching consequences for the art market. This article critically examines three such challenges: the historical artist versus artisan distinction embedded in the legislation's reference to "goldsmith's or silversmith's wares"; the functional classification of objects that straddle the boundary between fine art and decorative art; and the degree of physical attachment required for an artwork to constitute a "precious product" by virtue of its material composition. The article further considers the extension of the regime to virtual assets, including non-fungible tokens, and its implications for digital art transactions. It concludes that the current definitional framework risks producing arbitrary regulatory outcomes, capturing certain art objects while excluding others of comparable money laundering risk, and recommends that art market participants adopt a precautionary compliance approach (including robust know your client procedures and readiness to satisfy designated services obligations) pending further regulatory guidance from AUSTRAC.

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