Sports

EML Payments says it is too early to estimate the full costs of responding to the Central Bank probe into its Irish subsidiary Prepaid Finances Services.

EML Payments says it is too early to estimate the full costs of responding to the Central Bank probe into its Irish subsidiary Prepaid Finances Services.
The Australian company said the bill for lawyers and advisors will be under A$2m (1.3m) by the end of this month, when its current financial year ends.
EML has hired law firm Arthur Cox and professional services group PwC for work in relation to the investigation, it said in a trading update.
It is too early to estimate the costs beyond June 30, the Australian firm said.
EML has previously said the Central Banks concerns relate to its Irish subsidiary Prepaid Financial Servicess anti-money laundering/counter-terrorism financing, risk and control frameworks and governance.
In addition, the company warned it may see an impact of delayed program launches on income and transaction fees, which it is unable to currently quantify.
The financial impact of the investigation on the companys financial year 2022, which starts next month, cannot be fully determined at this time, the company said.
The ongoing uncertainty from a probe by the Regulator here into PFS is a risk and a challenge, EML said.
The Brisbane-headquartered company remains in continued dialogue with the Central Bank here in relation to the regulators concerns through substantial responses, data and access to our teams.
It has set up a project governance structure to assist its team in Ireland, including a subcommittee of the EML board and members of the companys executive team.
Along with the Central Bank, EML said it is proactivity communicating with, and providing information if and when requested, with other regulators in the regions where EML operates.
Last month shares in EML plunged almost 50pc after a two-day halt in trading, following an announcement from the company of the probe into PFS.
Shares in EML Payments are currently trading 26.6pc lower than they were prior to the announcement.
EML bought Noel and Valerie Morans PFS last year in a 171m deal. That figure was lower than an initial pre-Covid offer, but offers further earn-out potential of 60m.
The Irish business was founded in 2008 and provides online payment and banking-as-a-service software to clients in more than two dozen countries.
In the nine months to March this year EML reported revenue of A$143.5m, a 65pc increase year-on-year.