What is the purpose of the EU 5th Anti-Money Laundering Directive (5AMLD)?

The primary purpose of the EU 5th Anti-Money Laundering Directive (5AMLD) is to expand the anti-money laundering framework to include art market participants. This directive recognizes that the art market can be vulnerable to money laundering activities due to the high value of art transactions and the often opaque nature of sales. By including galleries, auction houses, and dealers within the ambit of the directive, 5AMLD aims to enhance transparency and ensure that these entities implement rigorous due diligence measures to prevent illicit financial flows.

The directive requires these participants to conduct customer due diligence, report suspicious transactions, and maintain comprehensive records. This framework is crucial in addressing the risks associated with the art market and helps regulators track financial activities that may involve money laundering or the financing of terrorism.

While other options mention practices like regulating online art sales, eliminating cash payments, or imposing tariffs, these do not accurately capture the directive's main focus which is about increasing the responsibilities and oversight for art market players in the context of anti-money laundering efforts.