MoneyGram 2006 Annual Report Download - page 48

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Table of Contents
• U.S. and International Regulation. Failure by us or our agents to comply with the laws and regulatory requirements in the United
States and abroad, or changes in laws, regulations or other industry practices and standards could have an adverse effect on our
results of operations.
• Operation in Politically Volatile Areas. Offering money transfer transactions through agents in regions that are politically volatile
and/or, in a limited number of cases, are subject to certain OFAC restrictions could cause contravention of U.S. law or regulations,
subject us to fines and penalties and cause us reputational harm.
• Network and Data Security. If we face system interruptions and system failures due to defects in our software, development delays
and installation difficulties, or we suffer a material security breach of our systems, our business could be harmed.
• Business Interruption. In the event of a breakdown, catastrophic event, security breach, improper operation or any other event
impacting our systems or processes or our vendors' systems or processes, or improper action by our employees, agents, customer
financial institutions or third party vendors, we could suffer financial loss, loss of customers, regulatory sanctions and damage to
our reputation.
• Agent Credit and Fraud Risks. We may face credit and fraud exposure if we are unable to collect funds from our agents who
receive the proceeds from the sale of our payment instruments.
• Third Party Fraud. Fraudulent activity using our services could lead to reputational damage to our brand and could reduce the use
and acceptance of our services.
• Litigation or Investigations. Our business and results of operations may be materially adversely affected by lawsuits or
investigations which could result in material settlements, fines or penalties.
• Investment Portfolio Credit Risk. If an issuer of securities in our investment portfolio defaulted on its payment obligations, the
value of our securities would decline, adversely affecting the value of our investment portfolio.
• Interest Rate Fluctuations. Fluctuations in interest rates may materially adversely affect revenue derived from investment of funds
received from the sale of our payment instruments and commissions paid to financial institution customers.
• Market Value of Securities. Material changes in the market value of securities we hold may materially adversely affect our results
of operation and financial condition.
• New Retail Locations and Acquisitions. Opening new Company owned retail locations and/or acquiring businesses may cause a
diversion of capital and management's attention from our core business and subjects us to new risks.
• International Migration Patterns. Changes in immigration laws or other circumstances that discourage international migration
could adversely affect our money transfer remittance volume or growth rate.
• Liquidity. Material changes in our need for and the availability of liquid assets may affect our ability to meet our payment service
obligations and may materially adversely affect our results of operation and financial condition.
• Banking Relationships. Inability by us or our agents to maintain existing or establish new banking relationships could adversely
affect our business, results of operations and our financial condition.
• International. Our business and results of operations may be adversely affected by political, economic or other instability in
countries in which we have material agent relationships.
• Internal Controls. Our inability to maintain compliance with the internal control provisions of Section 404 of the Sarbanes-Oxley
Act of 2002 could have a material adverse effect on our business and stock price.
• Anti-Takeover Provisions. Provisions in our charter documents and specific provisions of Delaware law may have the effect of
delaying, deterring or preventing a merger or change in control of our Company.
• Other Factors. Additional risk factors may be described in our other filings with the Securities and Exchange Commission from
time to time.
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