Shares of Malta-based iGaming giant 888 Holdings plunged by almost 27 percent after the company announced that its CEO, Itai Pazner, was resigning as an internal review uncovered deficiencies in the company’s anti-money laundering (AML) program.
The company announced in a London Stock Exchange filing that it is suspending VIP marketing activities in the Middle East as the internal AML probe continues.
“It has come to light that certain best practices have not been followed in regard to KYC (Know Your Client) and AML processes for 888 VIP customers in the Middle East region,” said 888, according to Casino.org. “The board currently estimates that the impact is less than 3 percent of Group revenues, should the suspensions remain in place. Based on the board’s current understanding, the process deficiencies identified are isolated to this region only.”
The company said Lord Jonathan Mendelsohn, current chairman of 888, will serve as executive chair on an interim basis as a search for Pazner’s replacement takes place.
Pazner was CEO of the company for eight years.
