Why Auction Houses and Art Galleries in France Request ID ? Understanding AML Obligations

Article publié le 13 novembre 2025

Many collectors are surprised when, after purchasing a painting or sculpture, the gallery or auction house asks to see their passport or national identity card. For some, the request may feel intrusive or unnecessary, especially when the transaction appears straightforward. However, in France, this requirement is not discretionary. It arises from a set of binding legal obligations designed to protect the integrity of the art market and prevent its misuse for illicit financial purposes.

The obligation to verify the identity of clients originates from French and European regulations on the prevention of money laundering and the financing of terrorism (often abbreviated as AML/CFT or AML). France, like all Member States of the European Union, has transposed into its domestic law the successive European directives on anti-money laundering — the most recent being Directive (EU) 2018/843, known as the Fifth Anti-Money Laundering Directive.

In France, these rules are enshrined in the Code monétaire et financier (French Monetary and Financial Code) and are enforced by Tracfin, the national financial intelligence unit attached to the Ministry for the Economy and Finance. Their purpose is to ensure that financial and commercial transactions, including those conducted within the art market, cannot serve as a vehicle for concealing the origin of funds derived from criminal activity or for financing terrorism.

For a long time, the art world was perceived as a discreet environment where transactions were based primarily on trust and confidentiality. This has changed. Since 2020, auction houses, art galleries or dealers have been expressly designated by law as “obliged entities” (entités assujetties) within the meaning of the French AML regime.

Client identification required by law
In practical terms, this means that any professional involved in the trade of works of art must carry out a process known as “Know Your Customer” (KYC) when the value of a transaction — or of several linked transactions — reaches or exceeds €10,000. The obligation applies not only to sales but also to purchases and intermediary operations, regardless of whether the payment is made in cash, by transfer, or by any other means.
The identification procedure is a central element of AML compliance. Before finalizing the sale, the professional must verify and record the identity of the client. For natural persons, this requires the presentation of an official and valid identity document, such as a passport, national identity card or residence permit. For companies or other legal entities, the professional must obtain the relevant corporate documents, enabling the identification of the beneficial owner — that is, the individual who ultimately controls or benefits from the entity.
If the transaction is conducted through an intermediary, an art advisor or a representative, the professional must also verify the intermediary’s authority to act on behalf of the client and identify the ultimate purchaser. These verifications are not formalities: they are a legal condition for the execution of the transaction.
Beyond its regulatory nature, the identification procedure serves a fundamental purpose: ensuring transparency within the art market. Works of art are movable assets of significant value that can easily circulate across borders. Their mobility and the opacity that can sometimes surround their provenance make them attractive to individuals seeking to launder illicit funds. By requiring proof of identity and the traceability of transactions, the law seeks to preserve the integrity of the art trade and to reinforce the credibility of professionals who operate within it.
Complying with these obligations also protects the professionals themselves. Should a suspicious transaction later come under investigation, an auction house or gallery that has performed its due diligence will be able to demonstrate its good faith and avoid serious administrative, disciplinary or criminal sanctions.

The consequences of a refusal by the client
If a client refuses to provide the documents required for identification, the professional has no discretion in the matter. Under Article L. 561-8 of the French Code monétaire et financier, they are prohibited from entering into any business relationship or completing the sale. In certain cases, the refusal itself may give rise to suspicion and lead to a report being filed with Tracfin. Such a report to Tracfin may then lead to criminal investigations, some of which have resulted in high-profile trials, such as the trial concerning the fake furniture purchased by the Château de Versailles.
This strict approach ensures that no transaction is carried out without the minimum level of transparency expected by the law. While it may sometimes cause frustration for buyers or sellers, it ultimately contributes to the reputation of the French art market as a secure and regulated environment.

The protection provided by the GDPR
Some clients express concern about how their personal information is stored or used. Here again, the law provides clear safeguards. The personal data collected in the context of AML/CFT obligations is subject to the General Data Protection Regulation (GDPR) and to French data protection rules. Auction houses and galleries must store this information securely, limit its access to authorized staff only, and retain it for a period not exceeding five years after the end of the business relationship. The data may be used solely for the purpose of fulfilling legal compliance obligations and cannot be disclosed for marketing or unrelated commercial purposes.

Obligations for better protection of the art market
It is important to understand that providing identification is not a mere administrative step, but a contribution to a broader effort to ensure transparency and ethical standards within the art world. Buyers, sellers, and professionals all share the responsibility of maintaining a clean and trustworthy market. Far from undermining confidentiality, these measures reinforce the legitimacy and credibility of transactions involving works of art.
For art market professionals, these obligations are not always easy to navigate. The regulatory framework is evolving and can be complex, particularly for international transactions involving multiple intermediaries or jurisdictions. Auction houses, galleries, and dealers must adopt internal procedures, train their staff, maintain records, and be prepared to justify their practices in the event of an inspection.

As a French Attorneys specialized in art market law, we assist art professionals in designing and implementing AML/CFT compliance programs tailored to their specific activity. This includes drafting internal policies, conducting compliance audits, training teams, and liaising the regulatory authorities when necessary. Proper compliance is not merely a legal requirement — it is also a mark of professionalism and integrity that inspires confidence among clients and partners.

An article written by Me Alexis Fournol,
Attorney at the Paris Bar, Partner.

As part of its work dedicated to compliance and the fight against money laundering and terrorist financing, the firm assists regulated professions in bringing their activities into compliance, developing internal protocols, and all phases of oversight, both by the French DGCCRF and the DNRED.
In this capacity, and more specifically in the context of its work dedicated to art law and art market law, the firm regularly assists professionals in this field (auctioneers and gallery owners in particular) as well as their professional associations in bringing their activities into compliance with the constraints associated with the fight against money laundering and terrorist financing. Our firm operates in both France and Belgium, particularly in Brussels.