Nicole Lapin

Let's say someone has $50 million in illicit cash.

Instead of trying to funnel it through a bank, they go through an auction house.

They bid on a painting, either through a shell company or an associate, and they buy it from themselves.

Now that $50 million is part of a public documented transaction.

It is no longer dirty cash.

It's art sale proof.

This has happened before.

In 2020, the U.S.

Senate released a report showing how Russian oligarchs used the art market to evade U.S.

sanctions.

One oligarch bought and sold art through shell companies with zero transparency, effectively moving money around the globe under the radar.

Auction houses that facilitate these deals, like Christie's and Sotheby's, don't violate any laws.

Why?

Because in many countries, there's no requirement to verify the identity of art buyers the way banks must.

It's a regulatory gray zone and rich people take full advantage of it.

Now, I know what you're thinking.

I'm not buying a million dollar painting, Nicole.

What does this have to do with me?

Well, here's the thing.

Understanding how the rich move money teaches us how the system actually works.