Legal artifact collecting, small businesses and hobbyists are directly threatened by legislation that could kill small businesses trading in artifacts and antiques.
On Jan. 1, 2021, Congress passed the National Defense Authorization Act (NDAA). Under Section 6110, this bill called for the Bank Secrecy Act to be amended to subject all “antiquities dealers” to anti-money laundering regulations that could drive small traders in antiques and artifacts out of business. This legislation makes “antiquities dealers” – who are not defined - into "financial institutions" under the Bank Secrecy Act.
Regulations are being written today aimed at people who legally collect artifacts, who go to artifact shows and who buy, sell or trade them.
How could regulation affect you? Typical Bank Secrecy Act rules would require all “antiquities dealers” with sales of $50,000 a year to collect private information including the name, address, and source of their money from buyers and sellers and file transaction reports with FINCEN (the Financial Crimes Enforcement Network), a Treasury entity. FINCEN shares this information with US tax authorities and police in 90 countries around the world.
Dealers could be required to do an annual independent audit and file Suspicious Activity Reports on cash or large sales over $2,000-$3,000. Anti-money laundering programs even for small businesses can cost thousands of dollars per year as well as the time required to comply. It is impossible to fly under the radar; regulations are enforced by the banks that will freeze or close accounts which do not comply.
American businesses, traders, and collectors, large and small, should ask FINCEN to define “antiquities” as narrowly as possible and to adopt high monetary thresholds before reporting is required.
The Treasury was given one year to decide what regulations to impose on the trade. FINCEN will soon announce a “Comment Period” for the public to respond to proposed regulations via the Federal Register. ATADA will post instructions below.
As soon as the Comment Period opens, it will be crucial to let U.S. FINCEN regulators – and your Senators and Congressmen – know that they should exempt the small businesses of the American Indian art and artifact trade from unnecessary regulation. Make YOUR VOICE count!
When the proposed regulations are issued and the comment period opens, ATADA will post links and instructions here.