EML Payments shares soared on Thursday after the provider of payment solutions platforms finally received some good news from Ireland’s regulators which sent the stock plunging this year over anti-money laundering compliance.
Earlier in May, the CBI raised significant regulatory concerns for the company’s Irish subsidiary regarding Anti-Money Laundering / Counter-Terrorism Financing (AML/CT), risk and control frameworks and governance.
The concerns were to potentially lead to prohibitive restrictions on the EML’s operations in Ireland, which at the time it was estimated that approximately 27% of the company’s global consolidated revenue were derived from programs operating under the Irish subsidiary
Shares crashed 45% following the announcement.
The central bank invited EML to provide it with submissions in relation to the concerns, which EML complied with in October and the CBI has subsequently acted on.
The CBI advised that it will permit EML’s Irish subsidiary to sign new customers and launch new programs whilst staying within material growth restrictions, for which EML is confident that it can comply. Broad-based reductions in limit controls on programs will not be imposed, as the CBI is satisfied to continue to engage with EML on appropriate limits under its Risk Management and Controls Framework.
Commenting on the issue EML stated, “EML takes regulatory compliance, including AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing), risk management and governance very seriously, and is committed to ensuring our global operations meet the highest standards of risk and regulatory compliance.”