New coins on the auction block

In 2014, a previously unknown type of Byzantine hexagram appeared on the market. Hexagrams are silver coins introduced in 615 AD by the emperor Heraclius and continued to be struck through into the 680s towards the end of the reign of his great-grandson Constantine IV (668-685) (Grierson 1999: 13). Dating to the reign of Constans II (641-668), these newly recognised hexagrams carry a bust of Constans II on the obverse and three standing figures of his sons Tiberius, Constantine IV and Heraclius on the reverse. By the end of 2015, six examples had appeared, which could be divided stylistically into fine and crude groups (Woods 2015). No new examples have appeared since then. The six known examples are listed on the Sixbid Coin Collector’s Archive:

 Auction dateAuctionPrice (EUR)
121 October 2014
5 April 2015
Nomos, Auction 9, lot 320
Pecunem, Auction 30, lot 610
Not sold
4250
210 December 2014Rauch, Auction 96, lot 6473500
39 March 2015Gorny, Auction 228, lot 7563800
413 March 2015
27 June 2015
Kunker, Auction 262, lot 8474
Roma, E-sale 18, lot 1210
Not sold
4212
522 March 2015Roma, Auction IX, lot 9056892
627 September 2015Roma, Auction X, lot 9316532

The description provided for the first one of these coins to be offered for sale in October 2014 at Nomos stated that it was “Of the greatest rarity, one of apparently two known examples, and unpublished” and that it was “uncleaned as found”. Two months later in December 2014, Rauch stated the coin it was offering was the third known copy. And so it went on:

Roma, 22 March 2015: “The fourth known example of this interesting type”.

Roma, 27 June 2015: “The fifth known example of this interesting type”.

Roma, 27 September 2015: “the sixth and finest known example of the type”.

The coin sold at the March 2015 Roma sale was bought by Dumbarton Oaks (BZC.2015.003). On its website, it describes the coin as the “Fourth specimen known of this type, which is missing from reference books”.

Dumbarton Oaks BZC.2015.003

It has been argued that because the coins all appeared on the market at the same time they may have come from a single hoard (Woods 2015: 174, note 10). Although no hexagrams of this type are known to have been found in modern-day Syria or its immediately neighbouring countries, historical sources support the further argument that they were in circulation there (Woods 2015: 180). Thus in all probability they were found there.

Clearly, the buyers and sellers were all aware that the coins were new to the market. Their descriptions said as much. Whether or not they suspected a Syrian origin is not possible to say, but they should have done. Let’s remember what was happening back then. In September 2013, ICOM released its Emergency Red List of Syrian Cultural Objects at Risk, which highlighted Achaemenid to Ottoman period coins. On 16 May 2015, US Special Forces raided the Syrian compound of Abu Sayyaf, head of the Da’esh Diwan al Rikaz (Ministry of Natural Resources and Minerals, including its Antiquities Division), where they recovered ancient coins from Syria and Iraq and there were electronic images of more gold coins and jewellery on his computer. In November 2015, Yaya J. Fanusie and Alexander Joffe published a report on Daesh’s antiquities trafficking, claiming that “Coins and other metal objects have emerged as particularly attractive items for IS”. So, by late 2015 at the very latest, it was widely known that there was an illegal trade in ancient coins out of Syria and that it was an important source of revenue for Salafist-jihadist groups such as Da’esh. And legislators were paying attention. In December 2013, European Union (EU) Council Regulation no. 1332/2013 concerning restrictive measures in view of the situation in Syria placed a trade embargo on Syrian cultural objects illegally removed from Syria on or after 9 May 2011. In February 2015, United Nations Security Council Resolution (UNSCR) 2199 placed a trade embargo on Syrian cultural objects removed illegally from Syria after 15 March 2011.

If as numismatic opinion suggests these new coins really were found in Syria, what were they doing being sold in Europe in apparent contravention of EU Regulation no. 1332/2013? Did anybody report the coins to the police? It appears not. When faced with unevidenced claims that unprovenanced antiquities are illicit in some way, dealers are always quick to claim they must be considered innocent until proven guilty. This is a good sound bite, but unfortunately very far from the mark. They would have us believe that the legitimacy of an unprovenanced antiquity is subject to the same burden of proof as the guilt of a person. But it is not. Civil disputes over ownership are decided on the balance of probabilities, not upon demonstration of guilt beyond reasonable doubt. Applying this standard, the appearance of a small hoard of previously unattested silver coins of a type known to have been circulating in Syria or its neighbouring countries at a time when there was also known to be active large scale looting and trafficking of ancient coins out of Syria might suggest, on balance, that the coins really were from Syria. Not that this probable conclusion concerned their buyers and sellers.

Mind you, they might have good reason for their apparent unconcern. EU Regulation 1332/2013 states that it applies to “Syrian cultural property goods and other goods of archaeological, historical, cultural, rare scientific or religious importance, including those listed in Annex XI”. Unfortunately, Annex XI does not specifically list ancient coins, except as category 13(b) “Collections of historical, palaeontological, ethnographic or numismatic interest”. But close inspection of Annex XI reveals the listing to be problematical. Category 13, based upon Harmonized Commodity Description and Coding System (HS) 9705.00 lists:

13(a) Collections and specimens from zoological, botanical, mineralogical or anatomical collections;

13(b) Collections of historical, palaeontological, ethnographic or numismatic interest.

The same listings appear as Category 13 in Annex 1 of the 2008 EU Council Regulation no. 116/2009 on the export of cultural goods. So, while Category 13(a) of these annexes includes “collections and specimens”, Category 13(b) includes only “collections”. These definitions are at variance with the WCO listings of 9705.00, which include “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest”. As the WCO developed the list, it is presumably the authoritative version. Thus, while the WCO explicitly includes “collectors’ pieces of numismatic interest”, the EC Regulations don’t. It might be a drafting error. But it might also lead reasonable people to believe that the omission is deliberate, and that neither Regulation 1332/2013 nor Regulation 116/2009 is intended to apply to “collectors’ pieces of numismatic interest”. In other words, the trade of individual coins is not subject to legal control.

Or maybe it is. In both Regulations, the term “collections” in Category 13(b) is qualified by the following footnote:

As defined by the Court of Justice in its judgment in Case 252/84 as follows: “Collectors’ pieces within the meaning of heading No 97.05 of the Common Customs Tariff are articles which possess the requisite characteristics for inclusion in a collection, that is to say, articles which are relatively rare, are not normally used for their original purpose, are the subject of special transactions outside the normal trade in similar utility articles and are of high value”.

In defining “collectors’ pieces”, the footnote implies that Category 13(b) should indeed include “collectors’ pieces”, so perhaps their omission is more by accident than by design. But the footnote raises further unfortunate ambiguities. What exactly does it mean by “relatively rare” and “high value”? Neither Regulation offers any guidance. The hexagrams are obviously rare. There are only six of them known. But what about value? The Sixbid Archive registers 182 Byzantine hexagrams sold between 2011 and 2019 for 61,888 EUR in total at an average (mean) price of 340 EUR and a median price of 181 EUR. The cheapest was 45 EUR and the most expensive was 3,752 EUR. So, for a hexagram, the new type might be considered high value, though not when compared to other coins, contemporary gold solidi, for example. And the prices achieved at auction in Europe would be higher than those declared on import documents. But more guidance is offered by the March 2019 EU Regulation 2019/880 on the introduction and the import of cultural goods. This Regulation establishes in its Annex that it applies to “antiquities, such as inscriptions, coins and engraved seals”, but seemingly judging rarity by value, it applies only to objects valued at more than 18,000 EUR. That is a far higher price than anything achieved by these new (or any) hexagrams.

So, the import and trade of these previously unknown Constans II hexagrams would appear to be in accord with the letter if not the spirit of the law. They were probably found in Syria, but possibly not. Their trade may be subject to legal control, but almost certainly not. If the purpose of regulatory instruments is to control illicit trade, they need to be much clearer about just what it is exactly they are trying to control. The law needs tightening, to say the least. And in the absence of legal clarity, there is no point trying to raise awareness about the harmful consequences of the trade in ancient coins, and particularly coins from Syria where evidence suggests that the trade is profiting Salafist-jihadist groups. There is no point either in making appeals for more ethical business practices when the perception will be that the appeals are asking legitimate businesses to go above and beyond what is strictly required of them by law. With profits at stake, that will not happen.

References

Grierson, Philip, 1999. Byzantine Coinage. Washington DC: Dumbarton Oaks.

Woods, David, 2015. Muʽāwiyah, Constans II and coins without crosses, Israel Numismatic Research 10: 169-182.

Heart of confusion? EU Regulation 2019/880 on the import of cultural goods and the fight against terrorism

On 12 March 2019, the European Parliament adopted EU Regulation 2019/880 on the import of cultural goods, which is intended to control the import of cultural objects into the European Union (EP 2019). The European Commission first announced the proposed Regulation on 13 July 2017, as part of the EU’s 2016 action plan to ‘strengthen the fight against the financing of terrorism’ (EC 2017a). The focus on terrorist financing was made clear in the press release:

Commission First Vice President Frans Timmermans said: ‘Money is oxygen to terrorist organisations such as Daesh. We are taking action to cut off each of their sources of financing. This includes the trade of cultural goods, as terrorists derive funding from the looting of archaeological sites and the illegal sale of cultural objects. By preventing them from entering the EU, we can help dry up this source of income’.

The press release went on to state that:

At the moment, the EU applies prohibitions on goods from Iraq and Syria but there is no general EU framework for the import of cultural goods. Current rules can be exploited by unscrupulous exporters and importers who can use the profits to fund illegal activities such as terrorism.

Background information presented with the press release also highlighted the problem of terrorist financing and emphasised it would be the intention of the new Regulation to reduce such financing by stopping the import of looted and trafficked cultural objects into the EU (EC 2017b):

Recent reports have also shown that valuable artworks, sculptures and archaeological artefacts are being sold and imported into the EU from certain non-EU countries, with those profits potentially used to finance terrorist activities. For example, two Syrian friezes that may have been intended for criminal gain were seized at Roissy airport, France last year.

The European Commission is now responding to numerous calls for action from the other EU institutions and national governments by proposing measures to counter the illicit trafficking of cultural goods from non-EU countries more effectively. The proposal adopted today is also foreseen in the Commission Action Plan for strengthening the fight against terrorist financing that was presented in December 2016 and aims to disrupt the sources of revenue used by terrorist organisations by targeting their capacity to raise funds.

Paragraph 1 of the Regulation’s preamble explains its purpose in responding to terrorism:

In light of the Council Conclusions of 12 February 2016 on the fight against the financing of terrorism, the Communication from the Commission to the European Parliament and the Council of 2 February 2016 on an Action Plan for strengthening the fight against terrorist financing and Directive (EU) 2017/541 of the European Parliament and of the Council, common rules on trade with third countries should be adopted so as to ensure the effective protection against illicit trade in cultural goods and against their loss or destruction, the preservation of humanity’s cultural heritage and the prevention of terrorist financing and money laundering through the sale of pillaged cultural goods to buyers in the Union.

Article 1(1) of the Regulation confirms:

This Regulation sets out the conditions for the introduction of cultural goods and the conditions and procedures for the import of cultural goods for the purpose of safeguarding humanity’s cultural heritage and preventing the illicit trade in cultural goods, in particular where such illicit trade could contribute to terrorist financing.

Thus in its intention and substance the 2019 Regulation is explicitly conceived as an instrument to combat the trade of cultural objects for financing terrorism. Unfortunately, it looks to have fallen short of that goal, largely because of the anachronistic and now flawed categorisation of cultural property which it inherited from the 1970 UNESCO Convention. Paragraph 7 of the Regulation’s preamble states that:

Many third countries and most Member States are familiar with the definitions used in the Unesco Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property signed in Paris on 14 November 1970 (‘the 1970 Unesco Convention’) to which a significant number of Member States are a party, and in the UNIDROIT Convention on Stolen or Illegally Exported Cultural Objects signed in Rome on 24 June 1995. For that reason the definitions used in this Regulation are based on those definitions.

Thus the Regulation adopted the 49-year-old 1970 UNESCO categorisation of cultural property for reasons of ‘familiarity’, rather than design a new, more technically precise system of categories – one more suited perhaps to the Regulation’s intended purpose of tackling terrorist financing. The categories of cultural objects subject to control by the Regulation are set out in its Annex, which follows the 1970 UNESCO Convention in making the distinction between (c) ‘products of archaeological excavations’, and (e) ‘antiquities, such as coins and engraved seals’. This distinction is important because legislatively these two categories are treated differently from one another.

Article 4 of the Regulation applies to ‘products of archaeological excavations (including regular and clandestine) or of archaeological discoveries on land or underwater’ and ‘elements of artistic or historical monuments or archaeological sites which have been dismembered’ (including liturgical items and statues), all more than 250 years old. An importer must apply for an import license, subject to certain reservations providing proof of licit export of material from the country of origin. The importer should supply relevant supporting documentation, such as export licenses etc.

Article 5 applies to all other cultural objects, including ‘antiquities, such as inscriptions, coins and engraved seals’, more than 200 years old. It requires only that the importer submit to customs a signed statement (affidavit) certifying that subject to certain reservations the material was legally exported from the country of origin, accompanied by a standardised document describing the object in detail to enable ‘risk control’.

In other words, while Article 4 controls the import of archaeological products by means of a licensing system, Article 5 only documents the import of antiquities. Furthermore, while Article 4 applies to archaeological products of any value, Article 5 only applies to antiquities valued at more than 18,000 Euros per item. In effect, because of this monetary threshold, virtually all ‘antiquities’ are excluded from any requirement to document through importer statement.

There is strong evidence in Syria of criminals and terrorists targeting what in the Regulation are termed ‘antiquities’ in the form ancient coins and jewellery. On 16 May, 2015, when US Special Forces raided the Syrian compound of Abu Sayyaf, head of the ISIL Diwan al Rikaz (Ministry of Natural Resources and Minerals, including its Antiquities Division), many of the antiquities recovered from his possession were coins from Syria and Iraq, together with electronic images of gold coins and jewellery on his computer (US 2016). Ethnographic reporting from Idlib Governorate in Syria has highlighted how metal-detectors are used searching for coins and other small objects (Brodie and Sabrine 2018), while the importance of coins is also reflected in reports of seizures in Turkey (Myers and Kulish 2016). The ATHAR investigation into the use of Facebook for trafficking cultural objects emphasises that ‘coins represented the most frequently offered artifact in posts’ (Al-Azm and Paul 2019: 37, 38 figures 43-46). Thus what evidence there is for the use of cultural objects in terrorist financing points towards the particular importance of ancient coins, which are not subject to the Article 4 licensing requirement of the regulation and mostly too low-value to be subject to the statement requirement of Article 5. The door is left wide open for the undocumented import and sale of ancient coins and other antiquities that might finance terrorism –expressly counter to the intention of the Regulation.

Other than the familiarity of the 1970 UNESCO categorisation, why ‘antiquities more than one hundred years old’ should be treated differently to ‘products of archaeological excavations’ is not explained in the Regulation (or in the 1970 UNESCO Convention), even though antiquities are commonly understood to be ancient archaeological objects. The distinction between archaeological products and antiquities is there already in Article 1 of the 1970 UNESCO Convention, perhaps because at the time the 1970 Convention was being drafted, the term ‘antiquity’ was being used in some national laws to denote an old rather than an ancient object (O’Keefe 2017: 125). A better term today might be ‘antique’. But the specific inclusion of coins in the category antiquities encourages or at least enables an interpretation that ancient coins should be considered separately from products of archaeological excavations.

The monetary threshold imposed by the Regulation on ‘antiquities, such as inscriptions, coins and engraved seals’ seems to carry over the distinction between important and, by extension, unimportant objects that was established in Article 1 of the 1970 UNESCO Convention. The idea that some cultural property is more important than other cultural property encourages a view that objects of aesthetic or other cultural (and thus monetary) value are more deserving of protection than objects that in themselves are of less aesthetic or cultural value. It is only a short step then to deciding that important objects are more deserving of trade control than unimportant objects. But privileging the ‘primacy of the object’ in this way overlooks or ignores the damage caused to cultural heritage by the large-scale clandestine excavation of small objects such as coins and jewellery, which can be massively destructive, as satellite images of Syrian archaeological sites suggest. When traded in large enough numbers, and they are, they can generate substantial income for criminals and terrorists.

Thus, it is questionable to what extent a legal instrument intending to protect cultural heritage in situ should distinguish between important and unimportant objects, as seems to be the case in the Regulation with its system of control for archaeological products but only documentation (at best) for antiquities. This is a serious problem if, as seems probable, coins and other small objects included in the category antiquities are a primary source of terrorist financing. By failing to exert control over their import into the EU the Regulation has failed in its expressed purpose of combatting terrorist financing.

The reasons for this failure are not hard to discern. First, the Regulation was drafted in light of a very poor evidence base. It was conceived in reaction to public concern about the activities of Da’esh in Syria and Iraq and particularly by widespread reports of Daesh’s control and profiting from the trade in cultural objects. Yet it remains the case that there has been no good quality or reliable research conducted into the problem of the trade in cultural objects funding terrorism, and in the absence of such research the legislators probably had to rely upon unreliable and sensationalist media reporting, with its misleading reports of ‘treasures’ and ‘artworks’ – little more than guesswork in fact. Second, it is questionable to what extent in 2019 the 1970 UNESCO categorisation is fit for purpose. Familiarity is all very well, but the categorisation is now fifty years old and as the Regulation shows it can cripple more forward-looking international legislation. In fact, it might not be too much to claim that unless it is changed or even abandoned it will come to constitute a debilitating ‘heart of confusion’ for any future laws aiming to control the trade in archaeological products/antiquities.

References

Al-Azm, Amr and Katie Paul, 2019. Facebook’s Black Market in Antiquities. Trafficking, Terrorism and War Crimes. Antiquities Trafficking and Heritage Anthropology Research (ATHAR) Project.

Brodie, Neil and Isber Sabrine, 2018. The illegal excavation and trade of Syrian cultural objects: a view from the ground. Journal of Field Archaeology 43, 74–84.

EC 2017a. Security Union: Cracking down on the illegal import of cultural goods used to finance terrorism. Press release 13 July.

EC 2017b. Questions and Answers on the illegal import of cultural goods used to finance terrorism. Press release 13 July.

EP 2019. Regulation on the Import of Cultural Goods.

Myers, Steven Lee and Nicholas Kulish, 2016. “‘Broken system’ allows ISIS to profit from looted antiquities”, New York Times, January 9.

O’Keefe, Patrick, 2017. Protecting Cultural Objects: Before and After 1970. Leicester: Institute of Art and Law.

US 2016. United States of America v. One gold ring with carved gemstone, an asset of ISIL, discovered on electronic media of Abu Sayyaf, President of ISIL Antiquities Department; one gold coin featuring Antoninus Pius, an asset of ISIL, discovered on electronic media of Abu Sayyaf, President of ISIL Antiquities Department; one gold coin featuring Emperor Hadrian Augustus Caesar, an asset of ISIL, discovered on electronic media of Abu Sayyaf, President Of ISIL Antiquities Department; one carved Neo-Assyrian stone stela, an asset of ISIL, discovered on electronic media of Abu Sayyaf, President of ISIL Antiquities Department, United States District Court for the District of Columbia, 2016 (1:16-cv-02442), December 15.