"Antiques" from Iraq: Trade Stats Raise Questions

Iraq has been identified as a source of conflict antiquities, which is why the International Council of Museums refreshed its Red List of endangered Iraqi cultural property in June 2014 and why the United Nations Security Council last February unanimously adopted a resolution targeting heritage trafficking in the region as a source of terror funding.

With this in mind, it is surprising that “antiques" ranked as the #4 declared import to the United States from Iraq by value in 2014, the latest date for which complete data is available from the U.S. International Trade Commission (USITC). In fact, there were more antiques imported from Iraq than goods like lambskin leather, dates and figs, fruit juices, and even spices.

Totaling $3,378,296 in general customs value, these antique imports “of an age exceeding 100 years” were outpaced in value only by America’s largest and most predictable import from Iraq, namely crude oil (#1) and non-crude oil (#2), as well as reimports of various articles originally exported from the U.S. (#3).

Importers of record are legally responsible for declaring goods on customs entry forms by supplying information such as proper value, correct country of origin, accurate Harmonized Tariff Schedule (HTS) classification, and complete product description. Of course there are many examples of traffickers who try to skirt their obligations in an effort to smuggle cultural heritage objects into the U.S. illegally, which is why antiques imports from Iraq should be scrutinized.

It is not known how many legal or illegal antiquities importers brought into the U.S. from Iraq last year. What is known is that declared imports of  "antiques" classified under HTS 9706 originated from a war zone where cultural heritage is in jeopardy. What commodities were exactly shipped to American ports of entry and why, in fact, did the bulk of declared HTS 9706 commodities originating from Iraq--$3,330,619 worth--get shipped to New York City remains a mystery, at least for now.

Were these imports deliberately misclassified to plausibly conceal illegally dug-up ancient tablets, foundation cones, sculptures, and more? Possibly. Or did a legal trade in vintage trays and antique coffee pots actually spike for some reason because of the conflict? Customs officials should find out for certain, particularly given the identified threat posed to archaeological site looting and museum and storehouse theft as a result of the unrest in Iraq.

There is another interesting observation. Among the 37 kinds of commodities imported into the U.S. from Iraq in 2014, antiques, together with with three other types of goods categorized under the broad import category of HTS 97 Works of Art, Collectors’ Pieces and Antiques, exceeded all other imports by value of primary Iraqi origin, except oil. The declared value of the HTS 97 commodities together totaled $3,554,595. So customs officials should also find out what goods importers actually classified as collections and collectors’ pieces of historical, archaeological, or numismatic interest under HTS 9705; as original sculptures and statuary under HTS 9703; and as paintings under HTS 9701.

One armed group operating in both Iraq and Syria is the terror organization ISIS, which reportedly has exploited cultural property as an important revenue stream. Suspiciously, the #1 U.S. category of imports by value from Syria in 2014 was “Antiques.” And now USITC trade data show that American imports from Iraq unveil further red flags.

Until the fighting subsides, and until customs officials learn more about the unanswered questions swirling around American imports of Iraqi cultural heritage goods, collectors would be well-advised not to buy heritage material from the region, or at least exercise rigorous due diligence when buying, in order to steer clear of acquiring potential ISIS loot.

Photo credit: Sam LeVan

Copyright notice: Although the data presented here is sourced from publicly available information, it is an original work of authorship that has been carefully selected, coordinated, arranged, and analyzed so that it is an original work of authorship subject to copyright protection as a compilation and/or a derivative work by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Text copyrighted 2016 by Cultural Heritage Lawyer, a blog commenting on matters of cultural property law, art law, cultural heritage policy, antiquities trafficking, and museum risk management. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of any blog post without the express written consent of CHL is prohibited. CHL is a service of Red Arch Cultural Heritage Law & Policy Research, Inc.

"Antiques" from Syria: U.S. Cultural Property Import Stats Raise Suspicion

Imports of Syrian goods into the United States have fallen dramatically since war broke out in the Mideast nation in 2011 and since the White House expanded the Syria Sanctions Program. Yet, despite the decline in U.S. imports from Syria, there are now disquieting trade statistics from 2014--the most recent complete data available--that should stir the attention of customs officials, police, and policymakers concerned about looted archaeology, stolen mosaics, and illicitly excavated coins trafficked illegally into the U.S.

Overall, America imported about $429.3 million worth of declared goods from Syria in 2010. Last year, that total collapsed to roughly $12.4 million, a stark decline over the five year period.

Moving in the opposite direction for a period of time were U.S. imports of antiques over 100 years old from Syria, which spiked to $11 million in 2013, a spectacular 133% increase in declared customs value over the previous year. While this figure noticeably fell last year to roughly $4.9 million, the value is similar to the $4.7 million worth of imported antiques recorded in 2012.

The 2014 statistic on antiques is striking because the five year trend line for imports of Syrian antiques failed to fade to black like other U.S. imports of Syrian goods. Instead, as the graphic above demonstrates, antiques constituted a decidedly large slice of the American import pie last year. They accounted for a whopping 40% of the value of all imports of every kind from Syria. In fact, goods classified by importers as Antiques of an Age Exceeding 100 Years under Harmonized Tariff Schedule (HTS) 9706 were the #1 import into the U.S. from Syria. There simply was no other import category that ranked higher in value than antiques, including the #2 import of Syrian anise and cumin seeds and juniper berries classified under HTS 0909.

Notably, every Syrian import classified as an HTS 9706 antique was shipped to the customs district of New York City, the location of one of the largest and most important art and antiquities markets in the world.

What we do not know is what kind of objects these "antiques" were. They may have been at-risk archaeological objects like cuneiform tablets or ancient pottery, deliberately mislabeled by smugglers as being "of an age exceeding 100 years." Customs officials need to find out.

Enforcement officials also need to investigate the #3 American import from Syria in 2014, commodities classified by a code smugglers might use to disguise imports of ancient mosaics. Mosaics, of course, are architectural features made of stone, glass, and/or ceramic. They are spotlighted in the International Council of Museum's Emergency Red List of Syrian cultural property, which is why the import of $1.4 million worth of HTS 6802 goods--11% of the total value of all Syrian imports to the U.S.--is concerning. HTS 6802 is intended to cover worked monumental or building stone; mosaic cubes of natural stone; and artificially colored granules, chippings and powder of natural stone. Yet the code may have been used by traffickers to unlawfully classify 5th century mosaics.

Together,  the declared imports of HTS 9706 and HTS 6802 goods accounted for 51% of the total imports of all Syrian commodities by value in 2014, a striking statistic that simply cannot be overlooked by cultural property watchers focused on spotting trafficked heritage objects that may have illegally piggybacked on legitimate international trade.

Classified by HTS 9705 and amounting to approximately $303,000, collections of historical and archaeological material of Syrian origin was the #5 import by value in 2014. This number was almost a triple increase from the $118,000 imported the year before.

Looking deeper into this trade category, we find that the bulk of HTS 9705 imports from Syria to the United States consisted of Numismatic (Collectors') Coins, Except Gold, classified by HTS 9705.00.0060, having a declared import value of approximately $265,000, which was a quarter of a million dollar jump from the exiguous value of $12,064 declared in 2013. Just like imports of Syrian antiques, every Syrian collectors' coin declared under this HTS category went through the New York City customs district. Were these coins ancient Roman, Byzantine, or Islamic like the ones identified on the Red List? Customs enforcement officials need to find out.

Given the reasonable articulable suspicion that Syrian cultural contraband may be moving to the U.S. through ordinary channels of international trade, police and customs investigators are justified in scrutinizing import paperwork and asking detailed questions of importers and customs brokers that will confirm or dispel this suspicion. To protect cultural heritage in jeopardy, to defend against money laundering, and to protect against terror financing in Syria, it is vital to know exactly what cultural property has been shipped to the U.S. from Syria under the HTS 9705, 9706, and 6802 classifications and why heritage goods makes up such a large portion of imported Syrian commodities.
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Data source: CHL compiled, arranged, and assessed the import figures presented here using raw data collected by the U.S. International Trade Commission and the U.S. Bureau of the Census.

Copyright notice: Although the data presented here is sourced from publicly available information, it is an original work of authorship that has been carefully selected, coordinated, arranged, and analyzed so that it is an original work of authorship subject to copyright protection as a compilation and/or a derivative work by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.


Note: Import data is reported to U.S. Customs and Border Protection by the owner, purchaser, or licensed broker of the consignee. They file the entry documents, not the customs officials who are unable to inspect and document every cargo shipment. So whether cultural commodities are properly classified as HTS 9705 archaeological material or HTS 9706 antiques is the responsibility of the importer. In fact whether imports are falsely classified so that they can be smuggled across the border or whether they are mistakenly classified because of an error in judgment is a function of the importing party. The import classification process is a self-reporting system, part of a shared compliance program overseen by U.S. Customs that obliges the trade community to regulate itself and follow federal law. Shared compliance allows the U.S. to competitively engage the world in global commerce. Smugglers, nevertheless, will try to exploit gaps and loopholes.

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Text copyrighted 2015 by Cultural Heritage Lawyer, a blog commenting on matters of cultural property law, art law, cultural heritage policy, antiquities trafficking, and museum risk management. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of any blog post without the express written consent of CHL is prohibited. CHL is a service of Red Arch Cultural Heritage Law & Policy Research, Inc.

Terrorism and Financial Intelligence Undersecretary Points to Antiquities Trafficking as a Source of ISIS Funding

David Cohen
Source: U.S. Treasury

The Islamic State in Iraq and Syria (ISIS) earns most of its cash from oil revenues, approximately $1 million per day. But the terror group also profits from crimes that include heritage trafficking.

"They lay waste to thousands of years of civilization in Iraq and Syria by looting and selling antiquities," David Cohen said today.

As the federal government's point-man in charge of uncovering and blocking financial support for terrorist groups, Under Secretary Cohen's insight on the topic should be given considerable weight. Since 2011, Attorney Cohen has served as Under Secretary for Terrorism and Financial Intelligence at the United States Department of the Treasury.

He made the remark about antiquities trafficking funding ISIS at the Carnegie Endowment for International Peace in Washington, DC.

By Rick St. Hilaire Text copyrighted 2014 by Cultural Heritage Lawyer. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited.

Conflict and the Heritage Trade: Rise in U.S. Imports of Middle East "Antiques" and "Collectors' Pieces" Raises Questions

American imports of art, collections and collectors' pieces, and antiques from Egypt, Iraq, Lebanon, Syria, and Turkey increased sharply between 2011 and 2013, prompting questions about whether trafficked heritage has piggybacked onto the mainstream marketplace.

War, mass looting, and other grave threats to heritage greatly expand the risk that smuggled cultural contraband will slide into the stream of international commerce undetected. Because art and antiquities transactions often lack transparency or fail to undergo rigorous due diligence, examining published trade data is one way to potentially spot trafficked cultural material hiding under the cover of everyday imports.

One region that has witnessed grave threats to cultural heritage is the Middle East. The intelligence community and the academic community both report that antiquities trafficking has generated revenue for the so-called Islamic State of Iraq and Syria (ISIS). More investigation needs to be conducted to measure the scope of the terror group's earnings activity, but the American Schools of Oriental Research and others have confirmed that archaeological site looting has been a wellspring for pillaged artifacts spilling out of Syria and Iraq, a result of both Syria's civil war and ISIS' sprawl. Spoils from the region reportedly have transited through the neighboring countries of Lebanon and Turkey. And in nearby Egypt, the country has suffered its own cultural heritage crisis amid unrest, prompting the nation to petition for an agreement with the United States that would help protect ancient archaeological and ethnological materials in jeopardy.

Given the cultural heritage emergency that has erupted in the Middle East, U.S. International Trade Commission figures documenting an upsurge in imports of Harmonized Tariff Schedule 97 goods from Egypt, Iraq, Lebanon, Syria, and Turkey flag concerns about whether conflict antiquities have entered America's stream of commerce. HTS 97 is the customs classification for works of art, collectors' pieces and antiques.

Total American imports of HTS 97 goods from the five countries rapidly escalated from $51.1 million in 2011 to $95.2 million in 2013--an astonishing 86% rise. The across-the-board spike can be gleaned from the table below, which displays hefty individual percentage increases of cultural imports from each of the five countries.

HTS - 97: WORKS OF ART, COLLECTORS' PIECES AND ANTIQUES
Customs Value

U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Turkey	22,778,794	24,799,487	44,715,936	80.3%
Egypt	19,546,035	20,201,597	31,383,502	55.4%
Syria	4,553,364	4,759,212	11,148,782	134.3%
Iraq	2,871,141	780,688	4,625,057	492.4%
Lebanon	1,382,136	2,120,696	3,351,462	58.0%

Goods declared by importers to be antiques of an age exceeding 100 years (HTS 9706) or collections and collectors' pieces of zoological, botanical, mineralogical, historical, archaeological, numismatic and other interest (HTS 9705) made up large portions of the broader category of HTS 97 imports.*

For example, HTS 97 imports from Egypt totaling $34.1 million in 2013 largely derived from a combination of $19 million worth of objects labeled by importers as antiques over 100 years old and $11.5 million of goods labeled as collections and collectors' pieces.

HTS 97 imports from Syria totaling $11.1 million in 2013 almost entirely came from $11 million worth of goods classified as antiques.

Remarkable too is that 93% of the 2013 total of HTS 97 imports from Iraq, Lebanon, and Syria were declared to be antiques over 100 years old, begging the question of whether nearly $18 million worth of great grandmothers' rocking chairs and similar items were shipped to America or whether the imports may have been ancient archaeological artifacts misclassified as "antiques."

The table below illustrates, among other information, that commodities declared by importers to be antiques from Iraq and Syria rocketed skyward by 672% and 133%, respectively, from 2012 to 2013.

HTS - 9706: ANTIQUES OF AN AGE EXCEEDING ONE HUNDRED YEARS

Customs Value

U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Turkey	15,979,030	17,553,638	19,257,308	9.7%
Egypt	16,793,409	13,817,236	19,043,410	37.8%
Syria	4,141,235	4,714,962	11,000,869	133.3%
Iraq	2,832,384	585,682	4,523,126	672.3%
Lebanon	708,461	1,392,005	2,218,073	59.3%

Declared imports of collections and collectors' pieces of zoological, botanical, mineralogical, historical, archaeological, numismatic and other interest goods, meanwhile, grew from $8.9 million in 2011, to $10.8 million in 2012, and then to $19 million in 2013--the final amount constituting a 113% jump from 2011 through 2013. The table below breaks down the individual numbers that chart this ascent. What kinds of objects actually made up these "collections and collectors' pieces?

HTS - 9705: COLLECTIONS AND COLLECTORS' PIECES OF ZOOLOGICAL, BOTANICAL, MINERALOGICAL, HISTORICAL, ARCHAEOLOGICAL, NUMISMATIC OR OTHER INTEREST
Customs Value
U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Egypt	2,375,694	5,746,759	11,518,231	100.4%
Turkey	5,875,218	4,919,196	6,651,262	35.2%
Lebanon	241,345	82,365	597,982	626.0%
Syria	330,129	34,250	117,913	244.3%
Iraq	30,757	8,509	97,931	1,050.9%

Traffickers have imported cultural material into the U.S. in clever ways in the past, surreptitiously labeling Hindu idols as "handicrafts," affixing "Made in Thailand" stickers on ancient Ban Chiang pots to make them appear modern, or manipulating the description of a Tyrannosaurus bataar skeleton from Mongolia on customs documentation. That is why scrutinizing the art, collectors pieces, and antiques that underlie the customs data described above would go far toward confirming or dispelling the suspicion that smuggled ancient artifacts from the Mideast may have been embedded within America's conventional global trade.

Among the questions requiring answers are what kinds of objects were specifically imported, and why did imports of "antiques" and "collectors' pieces" skyrocket in many instances? Were the imports classified properly or improperly? Who were the importers of record, and where did they sell their merchandise? Who were the buyers? What can the customs forms reveal about the commodities' actual countries of origin and their transshipment locations?


Data source: U.S. International Trade Commission Interactive Trade DataWeb (USITC DataWeb), as compiled by the Commission from official data retrieved from the U.S. Bureau of the Census (accessed October 2014).


Copyright note: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Photo credit: Svilen Milev
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*Import data is reported to U.S. Customs and Border Protection by the owner, purchaser, or licensed broker of the consignee. They file the entry documents, not the customs officials who are unable to inspect and document every cargo shipment. So whether cultural commodities are properly classified as HTS 9705 archaeological material or HTS 9706 antiques is the responsibility of the importer. In fact whether imports are falsely classified so that they can be smuggled across the border or mistakenly classified because of a judgment error is a function of the importing party. The import classification process is a self-reporting system, part of a shared compliance program overseen by U.S. Customs that obliges the trade community to regulate itself and follow federal law. Shared compliance allows the U.S. to competitively engage the world in global commerce. But smugglers will try to exploit the gaps and loopholes.

By Rick St. Hilaire
Text copyrighted 2014 by Cultural Heritage Lawyer. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited.

Another Due Diligence Lesson as Becchina Archive Produces U.S. Court Forfeiture of Antiquities from Italy

Yesterday’s order of forfeiture in the case of United States v. One Attic Red-Figure Skyphos and One Apulian Red-Figure Bell Krater provides another example of why dealers and collectors must exercise stringent due diligence when acquiring antiquities.

The case involved the seizure and forfeiture of the two archaeological objects that were alleged to have been the fruits of the Gianfranco Becchina antiquities trafficking ring. The forfeiture order issued by the federal district court in northern New York resulted from a stipulation between American and Italian authorities to turn over the archaeological material to the Italian people

The U.S. Attorney in Albany filed a seizure and forfeiture complaint this past April when information from Customs and Border Protection (CBP), Homeland Security Investigations (HSI), and the Italian Carabinieri Command for the Protection of Cultural Heritage (TPC) revealed that the two antiquities, valued at $55,000 in total, entered America’s border illegally. They were bound from Canada to Christie’s auction house in New York City.

American officials seized the objects from Walter M. Banko Enterprises, Ltd. Of Montreal on grounds that they were stolen, smuggled, and clandestinely imported merchandise brought into the U.S. contrary to law pursuant to 19 U.S.C. § 1595a(c)(1)(A). They were first seized in 2011 after the TPC notified HSI that the objects had been taken unlawfully from Italy.

Federal prosecutors alleged in their complaint for forfeiture that false statements were used to illegally import the antiquities into New York.  They also contended that the artifacts were stolen from Italy and referenced Italian statutes asserting title to the pieces, specifically Italian Law number 364 of 1909 governing the ownership and export of any “unmovable or movable items that have a historic, archaeological, paleontological or artistic interest” and Italian Law number 1089 of 1939 covering “moveable and immoveable property with artistic, historic, archeological or ethnographic value.”

Banko made no legal claim to the items in federal district court for the Northern District of New York. Italy did, however, so that the nation could reclaim the looted artifacts.

The prosecutors claimed that convicted antiquities trafficker Becchinahad possession of the skyphos and krater. The lawyers wrote in court papers, “Banko falsely claims on the documentation provided at the time of importation to the United States that the Skyphos was acquired from the Swiss collection of Dr. Elie Borowski in Basel in 1968, adding “Becchina’s warehouse and gallery contained images of the Skyphos and documents referencing the Skyphos dated from 1982….”

Prosecutors further argued in their court complaint that the krater appeared in the Becchina archive, a dossier retrieved in 2001 by Swiss law enforcement officials containing thousands of records and Polaroids cataloging looted antiquities.

The wine vessel was not from any authorized Italian archaeological excavation, the federal lawyers wrote. “In the documents provided by Banko to HSI, Banko indicated that the Krater was acquired in the 1960s from the personal collection of Andre Matton. [Yet] Becchina’s warehouse and gallery contained images of the Krater and documents referencing the Krater dated from 1992….” The attorneys added in some detail,

Documents recovered from the search of Becchina’s gallery and warehouse reveal the occurrence of the following events: in February of 1992, Becchina purchased the Krater, in fragments, from Raffaele Monticelli. On or about October 24, 1992, Becchina delivered the Krater to Ettore Bruno who was to restore the Krater. On or about July 15, 1993, Ettore Bruno sent a photograph of the restored Krater to Becchina. On or about August 10, 1993, Robert Guy answered Becchina regarding the Krater’s attribution and the scientific study of the Krater. Ettore Bruno returned the Krater to Becchina in March of 1994. Becchina paid 8,490 Swiss francs for the restoration of the Krater. On May 1, 1994, Bechina noted that the Krater was then located in his warehouse at Porto Franco di Basilea (Switzerland). 

An export certificate issued by the Ministry of French Culture accompanied the Krater during its exportation from France into Canada on March 10, 2011. The certificate makes no reference to the origin of the Krater and does not provide documentation supporting the Krater’s origins. 

Nowhere on Banko’s shipping documents does Banko say that either of the two defendant properties was acquired from or ever owned by Becchina.

Dealers and collectors should continue to be on the lookout for any other objects linked to the Becchina archive by getting meaningful answers to two basic due diligence questions:

Where did this object come from?

How and when did it get to the United States?

Photo credit: Jason Morrison.

Hat tip: Gary Nurkin

By Rick St. Hilaire Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited.

ABA Journal: How countries are successfully using the law to get looted cultural treasures back

The American Bar Association Journal has published an interesting cover story about looted cultural treasures that is well worth reading. View the full article here.

By Rick St. Hilaire Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com

UPDATED > Proposed U.S.-Egypt MoU Attracts Contrasting Comments from Heritage Preservationists and Ancient Coin Collectors

“Please exempt ancient coins. Don't ruin my hobby. Thanks[.]” That reaction summarizes many comments submitted to the Cultural Property Advisory Committee (CPAC) by dozens of ancient coin collectors worried about the adoption of a Memorandum of Understanding (MoU) between the United States and Egypt. The MoU, if recommended by CPAC and approved by the president, would restrict endangered Egyptian archaeological and ethnological objects from import into the U.S.

Egyptologists, archaeologists, and preservationists cited the increased looting of archaeology occurring in Egypt since 2011 as a prime reason to adopt the MoU. “Many major tourist sites have experienced intensified looting ...,” said the Society for American Archaeology in its public comment. And Egyptologist Dr. Monica Hanna offered several graphic photographs of the ravages of looting.

Last month, the U.S. State Department issued notice of Egypt’s request for an MoU under the Convention on Cultural Property Implementation Act (CPIA). The agency announced:

Egypt, concerned that its cultural heritage is in jeopardy from pillage, made a request to the Government of the United States under Article 9 of the 1970 UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property. The United States Department of State received this request in April 2014. Egypt's request seeks U.S. import restrictions on archaeological and ethnological material from Egypt representing its prehistoric through Ottoman heritage.

The written public comment period closed yesterday, attracting over 350 submissions.

Ancient coin collectors joined an organized effort to convince CPAC to either reject the adoption of the MoU or to simply exempt ancient coins. One illustrative comment declared:

Ancient coins should not be included in this ban. They are of a different nature than other antiquities, being mass produced in large establishments of ancient governments. In addition, if historical historical (sic) information is considered important, banning the import of these coins will have the opposite effect, forcing coins into the illicit end of the market; if legalized, there would be no such need for smuggling, and historical information could be preserved.

Another submission, evidently carved from a template seen in other comments, stated, “The request of the United (sic) Arab Republic of Egypt should be denied. It does not meet the requirements established by the CPIA [in the] early eighties.” The Ancient Coin Collectors Guild, the International Association of Professional Numismatists, and the Professional Numismatists Guild all urged the removal of coins from CPAC's consideration of potential import restrictions on jeopardized archaeological material.

Organizations representing archaeology and heritage preservation universally submitted comments supporting the adoption of a bilateral agreement between the U.S. and Egypt. With a collective membership of over 230,000, the Archaeological Institute of America (AIA), the Society of American Archaeology (SAA), the American Anthropological Association (AAA), and The American Schools of Oriental Research (ASOR) submitted a joint statement highlighting “the loss of archaeological context and thus our ability to understand temporal and social relationships and political structures as they impacted daily life, birth, and death.”

Writing on behalf of the American Research Center in Egypt, Brown University professor and Egyptologist Laurel Bestock offered a first-hand account of the looting threat in Egypt:

Coins and statues are some of the prime types of artifacts that are traded on the antiquities market, and there is no doubt that those my team found would have been immediately saleable had they been uncovered by looters. We found these objects in January of 2011, only days before the revolution began. In the aftermath of the revolution, looting at Abydos increased significantly; I would not be at all surprised if the discovery of the cache had some role in this, as the decision to avoid a public announcement could hardly keep their existence from being known locally. The very area where these were found was the subject of a nightime looting attempt while I was excavating in 2013. Thankfully the local police as well as the head workmen from my excavation, our guards, and our house staff responded immediately. On this occasion no looting was done. But as Dr. O’Connor noted, Abydos has had hundreds of looters pits dug since the revolution. These have been documented by comparing satellite imagery before and after January 2011, and archaeological fact-checking on the ground. To walk across the site is to see holes with bricks and pots thrown aside, gaping wounds in the archaeological landscape. While the incidence of looting has decreased significantly, the threat to the site and the information it contains remains very real. Abydos stands in the middle. Some sites have seen nearly no looting, and some have seen looting that has nearly destroyed them, has made it impossible for archaeologists to conduct work there.

The Penn Cultural Heritage Center submitted a meticulously researched and rigorously documented letterdetailing the recent pillage of archaeological material in Egypt, noting that its institution currently maintains 700+ reports of “looting incidents or cultural heritage damage” since the 2011 Egyptian revolution. The letter argued that “there is a condition of extraordinary pillage of cultural patrimony in Egypt.”

The letter touched on all aspects of the “four determinations” that CPAC must consider under the CPIA, which include:

(A) [whether] the cultural patrimony of the State Party is in jeopardy from the pillage of archaeological or ethnological materials of the State Party;
(B) [whether] the State Party has taken measures consistent with the Convention to protect its cultural patrimony;
(C) [whether] --(i) the application of the import restrictions . . . with respect to archaeological or ethnological material of the State Party, if applied in concert with similar restrictions implemented, or to be implemented within a reasonable period of time, by those nations (whether or not State Parties [to the 1970 UNESCO Convention]) individually having a significant import trade in such material, would be of substantial benefit in deterring a serious situation of pillage, and (ii) remedies less drastic than the application of the restrictions set forth in such section are not available; and
(D) [whether] the application of the import restrictions . . . in the particular circumstances is consistent with the general interest of the international community in the interchange of cultural property among nations for scientific, cultural, and educational purposes.

With regard to the third determination, The Penn Center noted:

Already, there is a strong international response to the pillage in Egypt. As CPAC is well aware, countries implement the 1970 UNESCO Convention in different ways. Most states party grant reciprocal recognition to the export restrictions of other counties. Such is the system in Canada, for example, which, in 2007, intercepted a Greco-Roman bust smuggled from Egypt. Switzerland is the only country with a protection regime involving bilateral agreements similar to those in the United States. Switzerland entered into an agreement with Egypt in 2010. Major market countries such as Belgium, Canada, France, Germany, Israel, and the United Kingdom have all been involved in the recovery and return of Egyptian material …. The United States would therefore not be alone in responding to the situation of pillage in Egypt with import restrictions.

A public hearing on the MoU proposal will be held in Washington, DC in June.

Photo credit: Enrico Nunziati

This post was updated on May 16, 2014.

By Rick St. Hilaire Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com

Money Laundering and the Trade in Cultural Property: Taking a Fresh Look at Federal AML/CTFs

Mark Vlasic, former head of the Stolen Asset Recovery Initiative, noted in Thursday's Huffington Post blog post titled "An Allied Effort to Save History" that

after the post-9/11 crackdowns on terrorist financing, law enforcement has reported a marked increase in antiquities and other artworks being used to launder money (in fact, one agent told us that money laundering cases make up the bulk of their art investigations, not repatriations).

But anti-money laundering as well as counter-terrorism financing laws (AML/CTF) are often limited when it comes to the trade in cultural property. That is because the cultural property markets in art, antiquities, fossils, etc. are not explicitly covered by AML/CTFs.

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) describes money laundering this way:

Money laundering is the process of making illegally-gained proceeds (i.e. "dirty money") appear legal (i.e. "clean"). Typically, it involves three steps: placement, layering and integration. First, the illegitimate funds are furtively introduced into the legitimate financial system. Then, the money is moved around to create confusion, sometimes by wiring or transferring through numerous accounts. Finally, it is integrated into the financial system through additional transactions until the "dirty money" appears "clean."

With respect to the art market, a 2012 Basel Institute on Governance report titled Basel Art Trade Guidelines, observes:

In comparison with other trade sectors, the art market faces a higher risk of exposure to dubious trade practices. This is due to the volume of illegal or legally questionable transactions, which is noticeably higher in this sector than in other globally active markets. Far more serious than shady dealings in a legal grey area, the sector’s shadow economy encompasses issues ranging from looted art, professional counterfeiting and fake certificates to the use of art sales for the purpose of money laundering.

There are several federal AML/CTF laws and regulations, the main ones being the Bank Secrecy Act (BSA) and the USA PATRIOT Act. They are tailored to detect international money laundering and terrorist financing in the banking, financial, and investment sectors by establishing compliance programs designed to report suspicious activities, verify customer identities (so-called Know Your Customer programs), disclose high value transactions, and more. Banks, casinos, and securities brokers are among the industries covered by the BSA. The USA PATRIOT Act, meanwhile, covers a wide swath of fields beyond banking, financial services, and investment institutions. They include travel agencies; pawnbrokers; dealers in precious metals, stones or jewels; and more. Explicitly absent from the list are dealers in art, antiquities, and other cultural materials.

Some countries' AML/CTF laws cover art, antiquities, and/or antiques dealers directly. Argentina, Brazil, Japan, and Lithuania are a few. (A thumbnail sketch of AML/CTF laws can be found here and here.) While Internal Revenue Code 6050I and 31 USC § 5331 direct business operators in the U.S.--including sellers of cultural objects--to document sales transactions over $10,000 on IRS Form 8300, the major AML/CTF laws, once again, do not explicitly mention dealers in art, antiquities, and other cultural materials.

Yet the U.S. Department of State's INL Office of Anti-Crime Programs specifically cites "art dealers" when referencing AML/CTF goals. By way of background, the U.S. is a member of the Financial Action Task Force (FATF), an inter-governmental body that "set[s] standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system." FATF identifies illicit trafficking of cultural goods, counterfeiting of antiquities, and the illegal trade of antiquities as facilitators of money laundering and terrorist financing in a 2013 report. With regard to FATF, the State Department declares on its web site that one of its objective is to help countries

implement the Financial Action Task Force (FATF) standards, which mainly address: (a) the types of AML/CTF laws and regulations a country should have; (b) the agencies a country should establish (financial intelligence units (IUs), regulatory agencies, specialized law enforcement and prosecutorial authorities); (c) the reporting regime and the entities within and outside of the financial sector that should be obliged to file reports (e.g., banks, money remitters, exchange houses, securities brokers, mutual funds, insurance companies, casinos, lawyers, accountants, realtors, art dealers, etc); and (d) the sharing of non-evidentiary information via the FIU and evidentiary information via MLATs and MLAAs to generate cooperation with other countries to ensure conviction of launderers. (Emphasis added).

Spotlighting black market antiquities with record-keeping laws has already been proposed by CHL. But identifying and targeting both money laundering and terror financing that is entangled within the legitimate cultural property trade should also involve a fresh look at federal AML/CTFs, and maybe some changes.

Photo credit: Levy Choi

This post is researched, written, and published on the blog Cultural Heritage Lawyer Rick St. Hilaire at culturalheritagelawyer.blogspot.com. Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Any unauthorized reproduction or retransmission of this post is prohibited.  CONTACT INFORMATION: www.culturalheritagelawyer.com

ICOM Red List for Syria Now Available

The International Council of Museums' Red List covering Syrian cultural objects at risk is now available. Click on the picture below to view the document.

Learn more about the impact of Syria's war on cultural heritage by clicking here.

This post is researched, written, and published on the blog Cultural Heritage Lawyer Rick St. Hilaire at culturalheritagelawyer.blogspot.com. Text copyrighted 2010-2013 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com

Responses to the Destruction of Heritage in Egypt

Lives and livelihoods are in jeopardy in Egypt, which must be safeguarded. Those involved with heritage preservation, meanwhile, must do what they are able in order to protect history and culture.

Archaeological sites, churches, and museums have been damaged extensively, and they remain under threat. Some responses thus far to this crisis have included:

• Publication of objects stolen from the Malawi Museum and display of photos of objects that may have been stolen from the museum;
• Distribution of the ICOM Emergency Red List of Egyptian Cultural Objects at Risk;
• Launch of a public awareness campaign by SAFE focused on Egypt; and
• A statement by the UNESCO Director-General deploring the damage done to cultural heritage sites.

Naturally, dealers and collectors of artifacts should remain vigilant when acquiring Egyptian objects during this period, conducting rigorous due diligence that includes asking tough questions and reviewing export and import paperwork..

And U.S. officials should consider adopting emergency import protections on Egyptian cultural heritage items. A suggestion has been made on this point already in an earlier blog post.

This post is researched, written, and published on the blog Cultural Heritage Lawyer Rick St. Hilaire at culturalheritagelawyer.blogspot.com. Text copyrighted 2010-2013 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com