EML announced on May 19 this year that the Central Bank of Ireland had “significant regulatory concerns” about its PFS Card Services (Ireland) Ltd’s anti-money laundering and counter terrorism financing risk controls and governance.
The announcement led to a multi-million dollar, 46 per cent plunge in EML’s share price on the Australian Stock Exchange.
Days later, EML revealed it had in fact had “increased interaction” with the Central Bank of Ireland since mid-December, information it should have disclosed to the market at the time.
Maurice Blackburn Senior Associate Michael Donelly said shareholders would expect EML Payments to have best-practice governance and to have complied with laws designed to combat money laundering and anti-terrorism laws.
“We are investigating whether EML has breached continuous disclosure laws as set out in the Corporation Act, or engaged in misleading or deceptive conduct. Under Australian law, companies are required to inform the market of all relevant developments to ensure transparency,” Mr Donelly said.
“On any reasonable interpretation, it appears the company should have disclosed its interaction with the Central Bank of Ireland at the first available opportunity.”
“On our analysis, this information is of grave concern to shareholders and warrants further investigation. An object of the anti-money laundering laws is to promote public confidence by the disruption of money laundering. Shareholders are entitled to expect that a company involved in international finance would have best practice governance and risk control frameworks and not run foul of regulators.”
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Paddy Murphy at Maurice Blackburn Lawyers on 0490 297 391
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