Art trader imprisoned for 2.5 years due to selling art to a suspected Hezbollah money launderer within the UK.
Art Dealers Facing Jail for Selling to Sanctioned Collectors
A London art dealer named Oghenochuko Ojiri has been sentenced to two years and six months in prison for selling artworks to a collector blacklisted by the US government since 2019 for funding Hezbollah, the Lebanese militant group.
Judge Cheema-Grubb, presiding over the case at the Central Criminal Court of England and Wales, stated, "Your actions were so severe, only a custodial sentence can be justified." Ojiri pleaded guilty in May to eight charges of failing to disclose potential terrorist financing. He was the first individual to be charged under the specific section 21A of the Terrorism Act 2000 by the Metropolitan Police.
Investigations were carried out by officers from the National Terrorist Financial Investigation Unit (NTFIU), the Counter Terrorism Command, the Office of Financial Sanctions Implementation (OFSI) in His Majesty’s Treasury, His Majesty’s Revenue and Custom (which regulates the art sector), and the Met's Arts & Antiques Unit.
Evidence presented in court showed that Ojiri knew about the sanctioned status of his client, Nazem Ahmad, who was blacklisted in 2019 by the US authorities. Judge Cheema-Grubb emphasized that Ojiri's actions undermined the detection of terrorist financing, but there was no evidence of hissupport for any form of extremism.
In 2023, Nazem Ahmad was also sanctioned again for violating and evading US sanctions through $440 million worth of art and diamond imports and exports. Eight associates, including several family members, were charged along with him.
The case serves as a warning to the art world about the importance of due diligence to ensure compliance with anti-money laundering and terrorist financing measures. Failure to report suspicious transactions can lead to severe consequences, as seen in Ojiri's case.
Ojiri owned a gallery in East London and appeared as an art expert on BBC's Bargain Hunt and other shows. His motivation for the transaction with Ahmad appeared to be financial and a desire to enhance his gallery's reputation within the art market through associating with a well-known collector.
Interestingly, individuals like Nazem Ahmad pose a significant risk to the art world due to their involvement in illicit activities like money laundering. It underscores the need for stricter compliance measures within the art market to prevent the use of art as a means to circumvent financial sanctions and support terrorist organizations.
Behind the Scenes:
Nazem Ahmad was designated as a Specially Designated Global Terrorist (SDGT) by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in December 2019. His sanctions were expanded in 2023 due to new charges filed against him and his associates for evading international sanctions. The art world has been significantly impacted by the sanctions against Ahmad, particularly in terms of anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. Failure to comply with these regulations can lead to severe legal consequences, as demonstrated by the case of Oghenochuko Ojiri.
Sources:1. BBC News. (2021). Art dealer jailed for failing to report sales to US-sanctioned collector. [online] Available at: https://www.bbc.com/news/uk-england-london-58156217.2. Metropolitan Police. (2021). Metropolitan Police Statement about Oghenochuko Ojiri sentencing. [online] Available at: https://www.met.police.uk/news/metropolitan-police-statement-about-oghenochuko-ojiri-sentencing/.3. His Majesty’s Treasury. (2019). OFSI issues a terrorism-related financial sanctions notice to a Lebanese-Belgian art dealer. [online] Available at: https://www.gov.uk/government/news/ofsi-issues-a-terrorism-related-financial-sanctions-notice-to-a-lebanese-belgian-art-dealer.4. The Art Newspaper. (2021). Art dealer jailed for selling art to US-sanctioned collector. [online] Available at: https://www.theartnewspaper.com/news/art-dealer-jailed-for-selling-art-to-us-sanctioned-collector.5. OFAC. (2023). Treasury Targets Lebanese-Belgian Art Dealer Nazem Ahmad and Associates for Evading U.S. Sanctions. [online] Available at: https://home.treasury.gov/news/press-releases/jy0509.
- The art world needs to prioritize due diligence to ensure compliance with anti-money laundering and terrorist financing measures, to prevent cases like the Oghenochuko Ojiri case, who was sentenced to two years and six months in prison for selling artworks to a collector blacklisted by the US government.
- Stricter compliance measures within the art market are necessary to prevent the use of art as a means to circumvent financial sanctions and support terrorist organizations, as demonstrated by the case of Nazem Ahmad, who was designated as a Specially Designated Global Terrorist (SDGT) and sanctioned again in 2023 for evading US sanctions through art and diamond imports and exports.
- The general news and policy-and-legislation sectors have been impacted by the sanctions against individuals like Nazem Ahmad, emphasizing the importance of adhering to anti-money laundering and combating the financing of terrorism regulations in the art market.
- The art market must consider the potential implications of associating with sanctioned collectors, as the reputation of galleries, like that owned by Oghenochuko Ojiri, can be damaged by such associations.
- Involvement in illicit activities such as money laundering by collectors like Nazem Ahmad poses a significant risk to the art world and the wider community, necessitating a collaborative approach from art market stakeholders, law enforcement agencies, and policy makers to combat these threats.
