- EML Payments (EML) shares have dropped into the red as Ireland’s Central Bank raises “significant” concerns regarding the ASX-lister’s Irish subsidiary
- The central bank issued correspondence to EML’s Ireland branch, PFS Card Services, advising it may issue directions amid Anti-Money Laundering and Counter-Terrorism Financing concerns
- EML maintains the correspondence does not concern the majority of its operations, however, the restrictions could impact 27 per cent of EML’s global consolidated revenue if actioned
- According to EML, PFS Card Services has been invited to provide submissions to the regulator regarding the matter, which it intends to do by May 27
- EML Payments shares are down 40 per cent on the back of the news, trading at $3.09
EML Payments (EML) shares have dropped into the red as Ireland’s Central Bank raises “significant” concerns regarding the ASX-lister’s Irish subsidiary
PFS Card Services (PCSIL), received correspondence from the Central Bank of Ireland advising it is “minded to issue directions” to the company amid Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) concerns.
While EML affirms the correspondence does not concern its Australian, North American or Prepaid Financial Services U.K. (PFS) operations, the directions could have a substantial impact on its European operations if enacted.
Programmes operating under PCSIL’s Irish authorisation brought in 27 per cent of EML’s global consolidated revenue between January 1 and March 31 this year.
In terms of the next steps, the central bank has invited PCSIL to provide submissions pertaining to the concerns, which PCSIL affirms it intends to do by May 27 2021.
The ASX-lister said it welcomes the opportunity to engage with the central bank on these matters.
As discussions with the central bank remain in their infancy, EML advised it is yet to adjust full-year guidances until it can estimate the potential direct and consequential costs associated with the correspondence.
EML Payments shares are down 40 per cent on the back of the news, trading at $3.09 at 1:10 pm AEST.