By Kyle Morris
888 Holdings PLC said Monday that it has suspended VIP activities in certain online markets pending the outcome of an internal compliance investigation.
The betting and gaming company–which completed the acquisition of the international business of William Hill on July 1–said that following an internal compliance review, it has found that certain best practices weren’t followed in regard to know your client and anti-money laundering processes for VIP customers in the Middle East region.
The estimated impact is less than 3% of revenue should the suspensions remain in place, it said. Based on current understanding, the process deficiencies are isolated to this region only.
“The board and I take the group’s compliance responsibilities incredibly seriously. When we were alerted to issues with some of 888’s VIP customers, the board took decisive actions. We will be uncompromising in our approach to compliance as we build a strong and sustainable business,” Nonexecutive Chairman Jon Mendelsohn said.
Further internal investigations are underway, the company added.
In a separate release also Monday, the company said that Chief Executive Itai Pazner will immediately leave his role and Mr. Mendelsohn will take the position of executive chairman on an interim basis while a search for a new CEO is conducted.
Write to Kyle Morris at kyle.morris@dowjones.com
This article was originally published by Marketwatch.com. Read the original article here.
