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Irish central bank plans to hit EML in Europe

Business

The value of shares in local fintech firm EML Payments plunged 11 per cent on Friday morning after it revealed its plans for growth in Ireland and Europe could be impacted by Central Bank of Ireland.

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EML revealed in May that the CBI had “significant regulatory concerns” about the company’s subsidiary, PFS Card Services, in relation to anti-money laundering and counter terrorism financing risk controls and governance.

It said the central bank’s potential directions were more limited than initially proposed but the regulator had considered the business’s growth plans were too high and that limits should applied which would impact the business in Europe.

EML bought the pre-paid card business last year for about $340 million.

“Whilst acknowledging the remediation program currently underway and governance improvements with the PCS, the CBI has advised that PCS’s proposed material growth policy, as requested and approved by the board, was higher than what the CBI would want to see,” EML said.

“In addition, the CBI has proposed that certain limits be applied to programs that, if implemented, could have a negative impact on the PCS business.”

EML said the business would present a detailed analysis to the CBI of almost 27,000 programs with a proposed recalibration of limits for certain programs.

It will also make a submission in relation to the potential directions from the CBI later this month.

EML is also facing a potential class action over the issue. Both Morris Blackburn and Shine Lawyers were considering class actions of alleged delays in notifying shareholders of the CBI actions.

 

 

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