888 CFO to stay on until end of year
The news follows today’s announcement that the group CEO Itai Pazner would be resigning with immediate effect, as the business revealed failings in its know your customer (KYC) and anti-money laundering (AML) processes relating to VIP schemes in its Middle Eastern dot.com operations.
The business also said that non-executive director Andria Vidler would be taking over as chair of the ESG committee, replacing Jon Mendelsohn.
Mendelsohn – who was also previously a non-executive director – will be stepping in as interim CEO until a permanent replacement can be found.
According to a media report published by CTech on 25 January, 888’s Tel Aviv office had laid off “dozens” of the site’s 590 employees.
Since the opening of the markets, 888’s share price has fallen 27.7% – the largest single drop in the company’s history.
On 13 January, the online gambling operator had said that it would experience a 3% year-on-year decline in revenue.
888 announced on the same day that Dafna would be leaving his position of CFO at the company following the operator’s publication of its full year results in late March.
888 said Dafna’s exit was a mutual decision.
“The board and I would like to thank Yariv for the contribution he has made to 888 including playing a crucial role in the completion of our transformational combination with William Hill and leading the recent successful financing of 888’s external debt,” Pazner said at the time.
“On behalf of everyone at 888, I wish him the very the best in his future endeavours.”
Pazner’s resignation comes in the wake of an internal compliance investigation which found that certain best practices have not been followed in regard to its AML and KYC processes for VIP customers in the Middle East.
As a result, 888 have decided to suspend VIP accounts for customers in the region immediately, a decision which the company estimates will reduce overall revenues by less than 3% if the suspension proves permanent.
“Based on the board’s current understanding, the process deficiencies identified are isolated to this region only,” said 888 in a statement.