Records and reports on monetary instruments transactions

(a)

Records and reports

(1)

In general

Section 5312 of title 31, United States Code, is amended—(A)in subsection (a)(2)—(i)by redesignating subparagraphs (Y) and (Z) as subparagraphs (Z) and (AA), respectively; and(ii)by inserting after subparagraph (X) the following:

(Y)a person engaged in the trade in works of art, including a dealer, advisor, consultant, custodian, gallery, auction house, museum, collector, or any other person who engages as a business as an intermediary in the sale of works of art, unless the person—(i)during the prior year, participated in no single transaction valued over $10,000 that involved a work of art;(ii)has not, during the prior year, participated in total transactions valued at $50,000 that involved a work of art; or(iii)is a person engaged in the art market for the sole purpose of selling works of art created by the person.

; and

(B)in subsection (c), by adding at the end the following:

(2)

Work of art

The term work of art means any original painting, sculpture, watercolor, print, drawing, photograph, installation art, or video art, not including—(A)applied art such as product design, fashion design, architectural design, or interior design; or(B)mass-produced decorative art, including ceramics, textiles, or carpets.

(2)

Effective date

The amendments made by paragraph (1) shall take effect on the earlier of—(A)the effective date of the rules issued under subsection (c); and(B)the date that is 360 days after the date of enactment of this Act.(b)

Mandatory update to Treasury guidance on art transactions

(1)

In general

Not later than 360 days after the date of enactment of this Act, the Secretary of the Treasury shall issue updated guidance to the advisory issued by the Office of Foreign Asset Control on October 30, 2020, regarding the risks of high-value artwork transactions involving sanctioned persons or entities.(2)

Interagency coordination

The Secretary of Treasury shall consult and coordinate with appropriate Federal agencies to update the guidance described in paragraph (1).(c)

Rulemaking

Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury (acting through the Director of the Financial Crimes Enforcement Network), in consultation and coordination with appropriate Federal agencies, shall issue proposed rules to carry out the amendments made by subsection (a), including—(1)determining which persons should be subject to the rulemaking based on domestic or international geographical location;(2)the degree to which the regulations should apply based on status as an agent or intermediary acting on behalf of a purchaser; and(3)whether certain exemptions should apply to the regulations.(d)

Technical and conforming amendments

Section 6110(a) of the Anti-Money Laundering Act of 2020 (title LXI of division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 134 Stat. 4561)) is amended—(1)in paragraph (1)—(A)in subparagraph (A)—(i)by striking subparagraphs (Z) and (AA) and inserting subparagraphs (AA) and (BB); and(ii)by striking subparagraphs (Y) and (Z) and inserting subparagraphs (Z) and (AA); and(B)in subparagraph (B)—(i)by striking subparagraph (X) and inserting subparagraph (Y); and(ii)by striking ‘(Y) a and inserting ‘(X) a; and(2)in paragraph (2), by striking Section 5312(a)(2)(Y) and inserting Section 5312(a)(2)(X).