The group CEO of 888, Itai Pazner, has resigned with immediate effect following failings in the company’s know your customer (KYC) and anti-money laundering (AML) processes related to VIP schemes in its Middle Eastern operations.
Andria Vidler, the non-executive director, will be taking over as chair of the ESG committee, replacing Jon Mendelsohn. Mendelsohn will serve as interim CEO until a permanent replacement is found.
Reportedly, 888’s Tel Aviv office has laid off “dozens” of employees.
Since the market opened, 888’s share price has fallen by 27.7% – the biggest drop in the company’s history.
On January 13, 888 announced that it expects a 3% decline in revenue compared to the previous year. In late March, CFO Dafna will be leaving the company following the publication of the full year results. This decision was mutual between the company and Dafna.
Pazner’s resignation comes after an internal compliance investigation revealed deficiencies in AML and KYC processes for VIP customers in the Middle East. As a result, 888 has decided to suspend VIP accounts for customers in the region immediately. The company estimates that this suspension will reduce overall revenues by less than 3% if it becomes permanent.
According to 888, the process deficiencies identified are limited to the Middle Eastern region only.
