EML Payments parts with chief executive Emma Shand after 10 months

EML Payments, the Australian fintech at the centre of a Central Bank of Ireland investigation over anti-money laundering deficiencies at its Irish subsidiary, has announced a leadership shake-up as it attempts to “reposition” the business.

The Sydney-listed group has also appointed an Australian investment bank to advise on a strategic review, which could result in the sale of all or part of the business.

The company announced on Monday that chief executive Emma Shand has resigned after 10 months at the helm of the business. She will be replaced by Kevin Murphy, former managing director of Bank of Ireland’s cards business, who will take on the role of group chief executive on an interim basis, the company said, while a global search for a permanent replacement gets under way.

EML reconstituted its board in February and undertook a strategic review of the business after it was revealed in 2021 that the Irish regulator was weighing the prospect of taking action against Trim, Co Meath-based PFS Card Services (Ireland). That entity is part of Prepaid Financial Services (PFS), a company founded by Noel and Valerie Moran in London in 2008, which the Australian group bought in 2020 in a deal worth up to £186.5 million (€216.2 million).

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The Central Bank’s concerns related to anti-money laundering and counter-terrorism financing matters, risk, control frameworks and governance at PFS Card Services and has been working on a remediation plan with the company.

But in an announcement in February, EML said that the Central Bank had written to it warning that it was not satisfied with the remedial action undertaken by the company so far, noting that there had been “ongoing deficiencies”.

On Monday, EML said: “The renewed board is committed to engaging with the Central Bank of Ireland, the Financial Conduct Authority in the UK and all other regulatory stakeholders.”

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It said it intends to “progress remediation efforts swiftly” in line with the Central Bank’s expectations, adding that a remediation subcommittee has been established to report on the company’s progress and oversee its adherence to the timetable set down by the regulator.

The group also announced that investment bank Barrenjoey has been appointed to advise on the strategic review, which will assess all options available to the business, “including a potential sale of all or parts of the business”.

In a statement, EML chairman Luke Bortoli said the board had spoken with stakeholders “and formed a view on the urgent priorities for the business”.

[ PFS owner cites hit to margins from Central Bank restrictions ]

He said: “We are focused on doing the right thing by our people, customers, regulators and shareholders and we are committed to taking actions that will help the business move through its immediate challenges, deliver sustainable growth in the medium to long term and maximise value for shareholders.”

Mr Bortoli said that Mr Murphy’s “understanding of the Irish and broader European regulatory environments, previous interaction with the Central Bank of Ireland and deep experience in the payments sector are perfectly aligned to addressing the needs of our business today”.

Shares in EML, down more than 6 per cent in the past six months, rallied almost 14 per cent in Sydney on Monday.