MoneyGram 2010 Annual Report Download - page 25

Table of Contents
There are a number of risks associated with our international sales and operations that could adversely affect our business.
We provide money transfer services between and among approximately 190 countries and territories and continue to expand in various
international markets. Our ability to grow in international markets and our future results could be harmed by a number of factors,
including:
• changes in political and economic conditions and potential instability in certain regions, including in particular the recent civil
unrest, terrorism and political turmoil in North Africa, the Middle East and other regions;
• restrictions on money transfers to, from and between certain countries;
• money control and repatriation issues;
• changes in regulatory requirements or in foreign policy, including the adoption of domestic or foreign laws, regulations and
interpretations detrimental to our business;
• possible increased costs and additional regulatory burdens imposed on our business;
• burdens of complying with a wide variety of laws and regulations;
• possible fraud or theft losses, and lack of compliance by international representatives in foreign legal jurisdictions where collection
and legal enforcement may be difficult or costly;
• reduced protection for our intellectual property rights;
• unfavorable tax rules or trade barriers;
• inability to secure, train or monitor international agents; and
• failure to successfully manage our exposure to foreign currency exchange rates, in particular with respect to the euro.
Changes in tax laws and unfavorable outcomes of tax positions we take could adversely affect our tax expense.
We file tax returns and take positions with respect to federal, state, local and international taxation, including positions that relate to our
2007 and 2008 net security losses, and our tax returns and tax positions are subject to review and audit by taxing authorities. An
unfavorable outcome of a tax review or audit could result in higher tax expense, which could adversely affect our results of operations
and cash flows. We establish reserves for material, known tax exposures. While we believe our reserves are adequate to cover material,
known tax exposures, there can be no assurance that an actual taxation event would not exceed our reserves.
As a deemed subsidiary of a holding company regulated under the BHC Act, we are subject to supervision, regulation and regular
examination by the Federal Reserve.
The Federal Reserve supervises and regulates all bank holding companies and financial holding companies, along with their subsidiaries.
The new Dodd-Frank Act requires regular examinations of subsidiaries of bank and financial holding companies and their subsidiaries in
the same manner as if they were depository institutions. As a subsidiary of a holding company regulated under the BHC Act, we are
required to provide information and reports for use by the Federal Reserve under the BHC Act. The Dodd-Frank Act also increases the
regulation and supervision of large bank and financial holding companies, such as Goldman Sachs, and their subsidiaries, which may
adversely affect us as a deemed subsidiary of Goldman Sachs.
Changes in laws and regulations could adversely affect us.
The Dodd-Frank Act, as well as the regulations required by that Act, and other laws or regulations that may be adopted in the future,
could adversely affect us and the scope of our activities, and could adversely affect our operations, results of operations and financial
condition, whether or not we are a subsidiary of a bank holding company or a financial holding company.
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