From quora.com: 📷Juan Pablo Forero, Artist and reader of arts and all kinds of books in various subjects.Answered Mar 4, 2016
Originally Answered: How does money laundering using art work?
Money laundering has to do with using illegal money to buy legal stuff and then you sell the object you buy and then the money is legal. So they buy art pieces and then sell them. Then when they are asked about the money, they just say they got it by selling art works. And they do that not only with art but as I said, with any object that is valuable enough and easy to sell. The idea is to hide the origin of the money so the more layers you put, the hardest is to trace it. But that kind of money affects a lot economy. For example, here in Colombia, drug lords used to laundry money by buying not only art but also land, so the price in certain places got to absurd levels and that also affected prices in other aspects. Money laundry affects us all, even if you don't see it.
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Caleb Kiu, knows a little bit about Money Laundering Answered Mar 31, 2016
Originally Answered: How does money laundering using art work?
A2A.
As mentioned in my answer to Do people buy expensive art to launder money, an expensive art piece may be used to transfer money across border and hide illicit gain.
Besides that, there are other ways which an expensive art piece may be used to launder money. The underlying principle is this: there is no "standard answer" on how to launder money. Money laundering is more like an art than a science. As long as the whole process looks logical, reasonable and realistic, it is up to your creativity how you want to launder money with it!
Ok, an example to how to launder money with expensive art pieces:
You start with a sum of dirty money, say, 1 million dollars in cash.
You look out for an auction event and look for some art masterpieces to bid for.
You use up your 1 million dollars dirty cash in exchange for a number of art masterpieces.
You bring those art masterpieces to the bank, take up a loan amounting to 900,000 dollars (or even 1 million if you have good connection), using the art masterpieces as collaterals.
You now have clean money loaned from the bank.
Depending on countries and their banking and auction regulations, this method may not work. But I heard that it has worked in "some countries".
Another example:
You start with a sum of dirty money.
You visit some really famous artists and buy up all their paintings with your dirty cash.
You assign an auction house to help you in auctioning these art pieces that you have bought.
The art pieces you sold off at the auction will be paid by the buyer or the auction house, depending on the arrangement. (I am not too sure).
You now have clean money by selling off your art collections.
The risk, of course, is that you may not be able to cash out so soon as not every art piece is wanted by collectors/buyers. You may need to do a few auctions to sell off everything. This is like a "long term money laundering" plan.
If you really want to "go long term" and "launder money like a Pro", you can even manipulate the price of an art piece and make some extra money along the way:
You start with a sum of dirty money. Or clean money is ok too.
You visit some not-so-famous but have-good-potential artists. Buy up their paintings at cheap prices. Sign a long term contract to buy up all their future paintings. Sponsor these artists to showcase their work frequently and build their reputation. Pay these individuals with dirty money. Or clean money is ok too.
Send a few piece of paintings to auction houses. Make arrangement to bid them at sky high prices! To make things not too obvious, you need to raise the bid price gradually over some time. Long term plan, remember?
Now that these not-so-famous artists are made famous by you and their art pieces made expensive by you, you can now start selling their art pieces at much higher prices! You now have clean money, made from selling those "expensive" art pieces.
Or you can take up a loan with the bank and use these "expensive" art pieces as collaterals. That is also clean money, from the bank.
As you can see, there are many ways to launder money with expensive art pieces, you are only limited by your own imagination and creativity!
Disclaimer: The above information is for general knowledge and does not constitute an advice. Money laundering is illegal and comes with heavy penalties!
Como diría Sabines, "yo no lo se de cierto, pero supongo...
Debe existir confabulación entre el artista y el lavador. El primero cobra por su obra, mas dinero de lo que realmente valdría, (en arte el precio es muy subjetivo) el segundo se lo paga, pero por debajo de la mesa le devuelven un porcentaje. A la luz publica, todo queda como una transacción legal... Y quien dice que no?