SYDNEY — EML Payments Ltd. shares dropped 20% Monday morning, giving up nearly all the gains made over the past two weeks, after the Australia-listed payments company said Ireland’s central bank was unhappy with aspects of a remediation program related to operations in the country.
EML on Monday said that the Central Bank of Ireland identified shortcomings including in the approach EML had taken in its risk assessment of distributors, corporates and customers. EML, which has had its volume growth capped while it undertakes the remediation work, said it may add additional controls to its internal processes.
Shares in EML were 20% lower at A$0.96, making them the worst-performing component of the benchmark S&P/ASX 200 index. The stock fell as low as A$0.925 earlier.
The drop wiped out strong gains made over the past eight sessions, including a 17.5% rise across the last full trading week.
The remediation stems from bank concerns over issues including leadership processes and controls related to anti-money laundering compliance at the Prepaid Financial Services business that EML acquired in 2019.