BMA strikes non-compliant company from the register
The Bermuda Monetary Authority has cancelled the registration of HBC Management Limited.
The BMA said HBC was registered as a non-licensed person on November 20, 2019 under the provisions of Section 10 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 (SEA).
The company’s beneficial owners are Morton Friedman and Eric Schreiber, who also served as the directors of the company.
Exercising its powers to cancel the registration, the BMA said it is satisfied that the company was in breach of three key areas in that it failed to comply with an obligation imposed under the provisions of Section 16 of the SEA for the years 2020 and 2021; failed to comply with an obligation imposed under the provisions of Section 14 of the SEA for the years 2021 and 2022; and ceased to carry on business.
The BMA said it viewed the breaches as serious because of their extent and duration.
Having regard to the directors’ failure to resolve the company’s compliance with SEA, the BMA determined that it no longer had confidence in either the company’s ability or desire to manage its affairs in compliance with SEA.
The BMA said its actions highlight the importance of its role in protecting the reputation of the jurisdiction and protecting the interests of potential clients of the BMA’s regulated entities.
Once the enforcement action was initiated, the statutory process was followed, culminating in a ten-day appeal period, which expired on November 13.
The decision was not appealed, the BMA said.