Not sure about Picassos. Picasso was a world famous artist that even those who are not into fine art know and appreciate. There is kind of a consensus on the value of his work, and even those who find it ugly won't treat it as trash.

The way I understand it, the kind art that is most often used in money laundry schemes is the more controversial kind. When some people think that a painting is a waste of perfectly good canvas while some rick collectors think it is the expression of god himself, how can you assign a value? This extreme subjectivity is what makes it ideal for money laundering.

I would love to know how the IRS handles this. You report 2M of income from selling your art. Does the IRS ask for details? Or do they try and find out how the person who bought your art got the money? Or they just don't care as long as you pay the income tax on it?