MoneyGram 2010 Annual Report Download - page 73

Table of Contents
• Increased Regulation of Financial Services Companies. The Dodd-Frank Act increases the regulation of financial services
companies generally, including non-bank financial companies supervised by the Federal Reserve.
• Consumer Financial Protection Act. We will be subject to various provisions of the Consumer Financial Protection Act of 2010,
which will result in a new regulator with new and expanded compliance requirements, which is likely to increase our costs.
• Operation in Politically Volatile Areas. Offering money transfer services through agents in regions that are politically volatile or, in
a limited number of cases, are subject to certain OFAC restrictions, could cause contravention of U.S. law or regulations by us or
our agents, subject us to fines and penalties and cause us reputational harm.
• Network and Data Security. A significant security or privacy breach in our facilities, networks or databases could harm our
business.
• Systems Interruption. A breakdown, catastrophic event, security breach, improper operation or other event impacting our systems
or processes or the systems or processes of our vendors, agents and financial institution customers could result in financial loss, loss
of customers, regulatory sanctions and damage to our brand and reputation.
• Technology Scalability. We may be unable to scale our technology to match our business and transactional growth.
• Company Retail Locations and Acquisitions. If we are unable to manage risks associated with running Company-owned retail
locations and acquiring businesses, our business could be harmed.
• International Risks. Our business and results of operation may be adversely affected by political, economic or other instability in
countries that are important to our business.
• Tax Matters. Changes in tax laws or an unfavorable outcome with respect to the audit of our tax returns or tax positions, or a failure
by us to establish adequate reserves for tax events, could adversely affect our results of operations.
• Status as a Bank Holding Company Subsidiary. As a deemed subsidiary of a bank holding company regulated under the BHC Act
of 1956, we are subject to supervision, regulation and regular examination by the Federal Reserve.
• 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.
• Overhang of Convertible Preferred Stock to Float. Sales of a substantial number of shares of our common stock or the perception
that significant sales could occur, may depress the trading price of our common stock.
• Debt. If the Company issues a large amount of debt, it may be more difficult for the Company to obtain future financing and our
cash flow may not be sufficient to make required payments or repay our indebtedness when it matures.
• Anti-Takeover Provisions. Our charter documents and Delaware law contain provisions that may have the effect of delaying,
deterring or preventing a merger or change of control of our Company.
• NYSE Delisting. We may be unable to continue to satisfy the NYSE criteria for listing on the exchange.
• Other Factors. Additional risk factors may be described in our other filings with the SEC from time to time.
Actual results may differ materially from historical and anticipated results. These forward-looking statements speak only as of the date on
which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after
such date.
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