EML Payments is having trouble shaking off the impact of its run-in with the Central Bank of Ireland last year, reporting in a trading update yesterday that it is still paying high remediation costs.  The company reduced its guidance by around 8 per cent. Having previously said it expected to report “underlying EBITDA” of A$58 to $65 million for the year to June, it now expects the figure to be between $52 and $55 million. Its underlying EBITDA in 2020/21 was $53.5 million. It also expects gross debit volume and revenue for the year to be lower than previously forecast. The company said its Australian and North American business are performing in line with expectations but it has “operational execution issues” in Europe. The company’s expenses are running about 30 per cent higher than last year, due to increased IT expenditure and headcount as part of the remediation program, as well as the inclusion of its most recent acquisition Sentenial. Last year, the CBI raised concerns about the risk of money laundering and terrorism financing within EML’s Irish-based European subsidiary PFS Card Services, as well as concerns about the company’s risk management framework and governance. PFS, which EML acquired in 2019, is a provider of white label payments and banking-as-a-service technology, The CBI imposed “material growth restrictions” on the company as part of its regulatory intervention. Costs relating to the CBI matter contributed to EML reporting a net loss of $12.1 million in the December half-year. The company said business growth in Europe had slowed as a result of having to take “a more risk-averse approach to new programs.” “We now anticipate continued challenges through Q4,” it said. The company’s share price dropped by more than 30 per cent yesterday, after the release of the trading update.