Phillips auction house enhances customer screening efficiency to navigate complex ownership structures

Phillips is a premier global auction house specializing in the sale of fine arts, antiques, and collectibles. Founded in 1796, its primary auctions and exhibitions are held in New York, London, Geneva, and Hong Kong, with operations extending across Europe, Asia, and the United States.

Navigating the complexities of the international art market presents distinctive challenges for art market participants (AMPs) like Phillips. The primary challenge lies in maintaining the integrity of high-value transactions and safeguarding against money laundering and other financial crimes.

Scrutinizing complex ownership structures 

The auction industry revolves around intricate, cross-border transactions frequently executed by diverse entities, including corporations and trusts. This complexity necessitates an efficient, rigorous customer screening process capable of handling varied ownership structures within the framework of international regulations.

Because a lot of our consignors or buyers are transacting via trusts or companies, that means looking at multiple layers and multiple individuals to make sure that everyone associated with the company, or everyone associated with the client, is somebody we would be happy to transact with.

Susanna Brockman, Head of Service Operations, Europe and International

As a result, Phillips needed a robust customer screening solution that could effectively screen a wide variety of entities and scale with the auction house’s expanding volume of transactions. 

ComplyAdvantage differentiates itself from competitors

Phillips’ decision to partner with ComplyAdvantage for customer screening was initially motivated by the solution’s user-friendly interface and simple data presentation. The ability to consolidate critical data from various sources, including sanctions lists and adverse media reports, was also critical. Following the seamless integration of ComplyAdvantage’s API, and the fact that “minimal training was required,” various members of Phillips’ front-line team were able to get up and running with the solution quickly.

What was really interesting in terms of differentiating itself from competitors was just the simplicity of the presentation. The ability to navigate through the software was really straightforward.

Martin Wilson, Chief General Counsel & Head of Fiduciary Services at Phillips

Operational efficiencies

Since partnering with ComplyAdvantage, Phillips has experienced significant improvements in its customer screening process. The technology has been a game-changer for the company, allowing staff members from the front desk and bids department to conduct swift client screenings with a simple “click of a button.” This has streamlined the registration process for potential buyers and consignors and augmented the screening for money laundering risks, directly enhancing transaction integrity.

Phillips particularly values ComplyAdvantage’s whitelisting capability, which allows the auction house to differentiate between new clients and previously vetted entities or those that require further examination. 

The whitelisting function is really useful to us. Every time we screen a client, the results are a little bit easier to digest and we can rely on ComplyAdvantage results.

Susanna Brockman, Head of Service Operations, Europe and International

Collaborating for success

At first, Phillips’ Chief General Counsel & Head of Fiduciary Services, Martin Wilson, was uncertain about the need for post-implementation communication with ComplyAdvantage. However, Wilson quickly came to appreciate the value of regular discussions with Phillips’ Account and Customer Success Managers. These conversations helped the auction house refine its screening practices according to its risk appetite and business objectives.

The customer success team has been really helpful to us. When we have a question, or we want to explore more sophisticated solutions, or if we want to tweak the way we’re searching, they have offered us some really helpful advice and some useful guidance in helping us streamline what we’re looking for and how we view our results.

Susanna Brockman, Head of Service Operations, Europe and International