Interview with Giuseppe Miceli (President of the Italian Anti-Money Laundering Observatory for Art) by Diana Daneluz | 27 September 2022, 4.45 pm Works of art pass from hand to hand, move, travel. Yes, but better if with the Passport! Counterfeiting and recycling in the art world. Interview with Giuseppe Miceli, President of the Italian Anti-Money Laundering Observatory for Art. Diana Daneluz. Dr. Miceli, let's start from the landing stage. The digital passport for works of art is a reality. What is it and what exactly is it used for?
Joseph Miceli. The digital passport has already been applied to two works of art. These are Oxymoron – Non Fungible money and Carte-siano. Works created by the artist Giorgio Gost. The Meeting Art auction house has put Carte-siano up for auction which can then be purchased by the collector who wants to enrich his collection with the first work of art equipped with a digital passport, i.e. the system that guarantees the authenticity of the work and the traceability of commercial movements which can be recorded in the register of the Owners of Works of Art. The register was established by the Italian Anti-Money Laundering Observatory for Art with the aim of ensuring transparency on the art market. We are convinced, in fact, that by giving transparency to the commercial chain of works of art, it is possible to hit effectively the illicit trafficking of works, which brings several tens of billions into the coffers of mafia-type criminal organizations, as well as causing irreversible damage to the historical and cultural heritage. Diana Daneluz. DIGITAL PASSPORT WORKS OF ART is a registered trademark. What does this entail? Joseph Miceli. I personally proceeded to register the trademark to avoid speculation and to make it clear that the Digital Passport for Works of Art® trademark must be read as a sign of guarantee, against the phenomenon of counterfeiting, and of protection, both in terms of prevention and combating the phenomenon of money laundering, both of copyright and in particular of resale rights. In other words, the work equipped with the digital passport for works of art® is certainly authentic because it has been previously validated by the Observatory and, moreover, being able to trace the commercial passages of that work, it will be possible to monitor the underlying capital movements that feed the assignments of the work and, at the same time, give evidence of the resale right that accrues, step by step, for the benefit of the Artist who created the work itself. Diana Daneluz. The protection of copyright with regard to works therefore concerns above all the 'resale right'. Can you explain us better? Joseph Miceli. The resale right is the right of the author of works of figurative arts and manuscripts to receive a percentage of the sale price of the originals of his works on the occasion of subsequent sales. The compensation that the law recognizes for the Artist's benefit is borne by the seller and is calculated on all sales subsequent to the first, provided that the intervention is configured, as a seller, buyer or even just an intermediary, a professional of the art market. In other words, only transactions made to or from galleries, auction houses or art dealers are subject to the resale right, while direct sales between private individuals are excluded. The amount of the fee is calculated on a percentage basis and ends up affecting the buyer. As you can well imagine, there are many cases in which to avoid this "surcharge" in certain contexts there is a tendency not to include the intervention of an art market professional and it is the Artist who pays for it.
Diana Daneluz. From his past in the Guardia di Finanza, to his commitment to training and institutions, his work in the fight against counterfeiting and money laundering and in the protection of copyright goes back a long way. What drove you down this road? Joseph Miceli. Undoubtedly the over twenty years of experience gained in the Selected Departments and in the Special Departments of the Corps has stimulated sensitivity towards that economic importance that belongs to works of art and which ends up constituting the real appeal for the criminal organizations dedicated to the trafficking of works of art for money laundering purposes. To understand how these organizations consider art exclusively as a thriving business, just think of that pizzino in which Matteo Messina Denaro wrote that: "with the traffic of works we support the family". A business that has taken on an international character over the years and which has contributed to the growth of "prestige" of those mafia organizations. Diana Daneluz. Anti-money laundering specifically for works of art. Where does your love for art and for its protection come from? Joseph Miceli. I am and remain, first of all, a jurist and, therefore, also the passion for art passes through legal texts. In elaborating this process of protection of works of art, I first of all considered what is stated in the Nicosia Convention, namely that "The concept of cultural heritage must be perceived well beyond the material sense. The word cultural implies a precise responsibility towards our past, our origins, our roots and from here we must develop awareness of the indispensable need to defend it. Defending our history means protecting our future, the values of a people and the sense of being a cultural community" Diana Daneluz. How important is correct information and what do you think your contribution will be through the various dissemination manuals you have written by now? Who are they aimed at, in particular? When, in 2019, I published the Volume of the Anti-Money Laundering Atlas dedicated to the world of Art, a well-known economic-legal newspaper reviewed it, declaring that it was the first analysis of the effects of money laundering in the art world. After three years, I notice that other anti-money laundering experts are starting to examine the specific context and, above all, there is a growing attention from the anti-money laundering authorities. I like to think that I helped to focus attention on a phenomenon that risked being controlled and managed by criminal organizations. Diana Daneluz. The advent of NFTs and blockchain technology has brought crypto-Art into the limelight. Are there already digital works of art equipped with a “Passport”? Joseph Miceli. It is true, the declination of NFT technology in the world of art has been sudden and, in many respects, formidable. Even in this context, however, the laundering of illicit proceeds lurks. The digital passport has already been applied to the digital versions of the works "OSSIMORO, NON FUNGIBLE MONEY", created by the artist Giorgio Gost. A series of digital versions have been reproduced to which an NFT is connected, visible at this link: https://opensea.io/assets/matic/0x47114cefd782b634001c96c6753fb4b19d04d9db/1, and "CARTE-SIANO", a work that will be auctioned at MEETING-ART next 6 October, as shown in the Catalog (page 101) available online: https://issuu.com/meeting/docs/asta918?fr=sYWQ2MTUwMDI1OTc Diana Daneluz. From the Passport to the REGISTER OF OWNERSHIP OF WORKS OF ART. What is it, who owns it and how will it protect those who are registered? Joseph Miceli. The Registry is an online and open source tool that will allow anyone who requests it to register their work of art, subject to validation and, based on the ownership data and the technical and economic data concerning the work itself, obtain the release of the Digital Passport for works of art. Furthermore, the Register, which can only be consulted after registering your account, will constitute a valid support for anti-counterfeiting and anti-money laundering activities, as well as for the protection of copyright (especially right away). Diana Daneluz. What was the reaction of the Institutions and the Authorities regarding the possibility of using this important protection tool? Joseph Miceli. To date, the competent authorities and institutional bodies have not yet made official, let's say, the interest in using the two tools, but they are informed that the digital passport, the brand and also the register are at their complete disposal completely free of charge. However, I would like to stress that this protection initiative, which stems from my personal idea, is now supported by the Italy Anti-Money Laundering Observatory for Art and by its members, first of all, Giul
