Eu And Government Against “Hidden Museum”

2021-02-22   |   by CusiGO

Only 8% of the art owned by private collectors can be seen in museums. 60% live in private homes or offices and office corridors. The remaining third is still hidden in warehouses, bank vaults and so-called hidden museums (known as Freeport in El mundillo). Both the EU (through a directive already in force) and the Spanish government are committed to eliminating the irregularities surrounding them in many cases. In Spain, the Ministry of economy will submit a draft amendment to the law on the prevention of money laundering and the financing of terrorism to the upcoming ministerial meeting, the Ministry’s source said. Among other things, it will regulate the activities of those who “act as intermediaries in the trade of art in a free port”. The text of the European Directive into text will be presented to parliament this spring.

Visiting these facilities is another part of a certain social charm, attracted by secret odors and biometric card visits to see how the owners extract from Van Gogh, Carlos, Picasso, bacon, Milos, Warhol or Basque cabinets. Christopher Nolan introduces the hidden museum in the core sequence of his last film, tenet. The protagonist does not want to rob the museum, but to laugh at the complicated security measures at one of the luxury warship sites (in fact, it was shot at an art center in Tallinn, Estonia).

The Geneva museum is the most important hidden museum in Switzerland. It covers the same area as the Louvre and houses nearly 1 million items, including antiques. Singapore and Luxembourg followed, although Delaware, Monaco and Beijing had other countries.

Since they were widely used at the beginning of last decade, they have a dual aspect: they are very useful for the logistics and storage of goods in transit, and they provide irreplaceable services for collectors, museums, galleries and auction houses with the most advanced protection and security technologies; This dark side has to do with tax fraud and money laundering, in part because of the documents scandal in Panama related to the nahmad family and their Nazi kidnapped Modigliani (whose son David has just been pardoned by trump); the trafficking of antiques that financed the Islamic state or this case. Yves Bouvier, the owner of a natural company called Le coultre, a shareholder in the port of Geneva and a developer in Singapore, was accused of fraud by Russian tycoon Dmitry rybolovlev in 2015.

So many scandals led to an anti money laundering directive issued by the European Union, which came into force on January 1, 2020. On the balance sheet in 2019, the hidden museums in Geneva and Luxembourg (now known as the Luxemburg high security centre or Luxemburg high security centre) lost more than 3%, waiting for the destruction of covid. The two new female principals refused to be interviewed by the state.

Oddn ý helgad ó ttir, Professor of political economy at Copenhagen Business School, is the author of the report on the basis of European directives. “There are a lot of potential advantages in Freeport,” he said. For collectors, dealers and other large art owners, they provide a storage space in terms of light, humidity and… For those who have switched to tangible investments because of the removal of bank secrecy, they offer tax-free storage. For those who want to store the pieces secretly and anonymously, such as in divorce proceedings, it may be useful to hide them. Those engaged in the trade in illegal or smuggled cultural goods regard it as an illegal place. ”

In many cases, transactions are made there: the table is just a safe. In European territory, since the regulation came into effect, the owner registration fee is required to mark the shell company from 10000 euro and keep it for up to six months. However, the economist does not think that the EU directive has had such a big impact on the hidden museums. “He did not classify them as financial institutions, which means that the rules are quite loose and may be tightened.”

John zarobell, head of International Studies at the University of San Francisco, analyzes the grey areas of the market and uses art as a strict financial tool. The Committee regrets that “many heritages have been removed from the public domain, reducing their cultural value”. He did not dare to give the figure of more than 60 billion euro intangible engineering value in the market in 2019. He doubted “whether the legislation of China and the United Arab Emirates is in line with the provisions of the European Union or the United Kingdom.” he did not think that after brexit, British Prime Minister Boris Johnson would, He created an “Singapore on the Thames” of art, and both he and hergadotil framed the Freeport of art or museum hidden in broader economic trends and wealth concentration. “Technically, it means that there is a large group of very rich people looking for other forms of investment,” hergadotil said. This also includes cryptocurrency, gold, wine or technology stocks.

The hidden museum also allows owners to store items they can borrow. Zarobell points to another recent approach: in many private transactions, and even in some public auctions, works are sold to an offshore company (i.e., a company set up in a tax haven) at the lowest guaranteed price before bidding, and the difference will be shared if the final bidding price is higher. The audience focuses on the record works, but what about those that don’t sell? They can be stored as assets without any tax costs.

These invisible museums are also fueling a new trend: batch collections. It’s about buying a painting from Andy Warhol as if it were stock in a company. Warhol believes that it is a kind of blue chip stock and a solvency and reliable asset in uncertain times. The work will be stored, rented or sold in due course. Many platforms, such as Maecenas fine arts, a pioneer in Singapore, and auction houses, offer shares in cryptocurrency works such as bitcoin.

The University of Alberta in Catalonia and the Autonomous University of Barcelona have developed a technology, Bart, to promote its purchases and sales through bitcoin, which enables it to track authors’ works, authenticate authors at a time when non face-to-face exhibitions proliferate, and save middlemen.

It’s as if the philosophy that inspired the world of coders has entered the art market. Not only in terms of economy, but also in terms of creativity: the most expensive work inspired by bitcoin is Robert Alice’s block 21, which was purchased at Christie’s last year for 108307 euros, of which 322048 bits are the original code designed by Satoshi Nakamoto for bitcoin, distributed in 40 paintings in the “portrait of the soul” series, So no collector can own the whole code.

Does it have a future or a fashion? “I’d rather hang Picasso on the wall of my house than put one of the best Leonardo da Vinci paintings where I’ll never see it,” one art consultant doubted