Western Union 2009 Annual Report Download - page 29

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rulings or other events could expose Western Union to increased program costs, liability and reputational
damage.
Banking Regulation
Western Union International Bank operates under a banking license granted by the Austrian Financial
Market Authority (“FMA”), allowing the bank to offer a range of financial services in the 27 member states of
the EU and the 3 additional states of the European Economic Area. The banking license subjects our bank to
the Austrian Banking Act regulation by the FMA and the Austrian National Bank. The bank also is subject to
regulation, examination and supervision by the New York State Banking Department (the “Banking
Department”), which has regulatory authority over our subsidiary that holds all interest in the bank, a limited
liability investment company organized under Article XII of the New York Banking Law. An Agreement of
Supervision with the Banking Department imposes various regulatory requirements including operational
limitations, capital requirements, affiliate transaction limitations, and notice and reporting requirements.
Banking Department approval is required under the New York Banking Law and the Agreement of Supervision
prior to any change in control of the Article XII investment company.
Since Western Union International Bank does not operate any banking offices in the United States and
does not conduct business in the United States except as may be incidental to its activities outside the United
States, our Company’s affiliation with Western Union International Bank does not cause it to be subject to the
provisions of the Bank Holding Company Act.
In Brazil, we have submitted applications to the Central Bank of Brazil for commercial bank and
exchange broker licenses. Such licenses will enable us to engage in financial services which we are unable to
provide today, including domestic money transfer and bill payments.
Other
Some of our services are subject to card association rules and regulations. For example, an independent
standards-setting organization, the Payment Card Industry (“PCI”) Security Standards Council (including
American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc.
International) developed a set of comprehensive requirements concerning payment card account security
through the transaction process, called the Payment Card Industry Data Security Standard (“PCI DSS”). All
merchants and service providers that store, process and transmit payment card data are required to comply
with PCI DSS as a condition to accepting credit cards. We are subject to annual reviews to ensure compliance
with PCI regulations worldwide and are subject to fines if we are found to be non-compliant.
Stored-value services offered by Western Union prepaid services are subject to federal and state laws and
regulations related to consumer protection, licensing, escheat and money laundering. These laws are evolving,
unclear and sometimes inconsistent, and the extent to which these laws apply to Western Union or its
consumers is in a state of change. We are unable to determine the impact that the clarification of these laws
and their future interpretations may have on these services.
Employees and Labor
As of January 31, 2010, our businesses employed approximately 6,800 employees. Our United States
based employees are no longer represented by any unions or collective bargaining agreements.
Available Information
The Western Union Company is a Delaware corporation and its principal executive offices are located at
12500 East Belford Avenue, Englewood, CO, 80112, telephone (866) 405-5012. The Company’s Annual
Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those
reports are available free of charge through the “Financial Information” portion of the Company’s web site,
www.westernunion.com, as soon as reasonably practical after they are filed with the Securities and Exchange
Commission, or the “SEC.” The SEC maintains a web site, www.sec.gov, which contains reports, proxy and
information statements, and other information filed electronically with the SEC by the Company.
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