Western Union 2009 Annual Report Download - page 32

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ITEM 1A. RISK FACTORS
There are many factors that affect our business, financial position and results of operations, some of
which are beyond our control. These risks include, but are not limited to, the risks described below. You
should carefully consider all of these risks.
Risks Relating to Our Business and Industry
Interruptions in migration patterns, including as a result of economic conditions, could adversely affect our
business, financial condition and results of operations.
Our money transfer business relies in large part on migration, which brings workers to countries with
greater economic opportunities than those available in their native countries. A significant portion of money
transfers are sent by international migrants. Migration is affected by (among other factors) overall economic
conditions, the availability of job opportunities, changes in immigration laws, and political or other events
(such as war, terrorism or health emergencies) that would make it more difficult for workers to migrate or
work abroad. Changes to these factors could adversely affect our remittance volume and could have an adverse
effect on our business, financial position and results of operations.
Many of our consumers work in industries that may be impacted by deteriorating economic conditions
more quickly or significantly than other industries. Reduced job opportunities, especially in construction,
manufacturing, hospitality, agriculture and retail, or overall weakness in the world’s economies, such as that
currently being experienced, could adversely affect the number of money transfer transactions, the principal
amounts transferred and correspondingly our results of operations. If general market softness in the economies
of countries important to migrant workers continues, our results of operations could be adversely impacted.
Additionally, if our consumer transactions decline, if the amount of money that consumers send per transaction
declines, or if migration patterns shift due to weak or deteriorating economic conditions, our results of
operations may be adversely affected.
Our ability to adopt technology in response to changing industry and consumer needs or trends poses a
challenge to our business.
Our ability to compete in the markets we serve may be threatened by change, including changes in
technology, changes with respect to consumer needs, competition and industry standards. We actively seek
solutions that respond in a timely manner to new technology-based money transfer services such as internet,
land and mobile phone-based money transfer services and prepaid, stored-value and other card-based money
transfer services. Failure to respond well to these challenges could adversely impact our business, financial
position and results of operations. Further, even if the company responds well to these challenges, the business
and financial models offered by many of these alternatives, more technology-reliant means of money transfer
may be materially less advantageous to us than the model offered by our traditional cash/agent model.
Our business is subject to a wide range of laws and regulations, especially laws designed to prevent money
laundering and terrorist financing. Failure by us, our agents or subagents to comply with those laws and
regulations could have an adverse effect on our business, financial position and results of operations.
As described under Item 1 of Part I, our business is subject to a wide range of laws and regulations.
These include financial services regulations, consumer disclosure and consumer protection laws, currency
control regulations, money transfer and payment instrument licensing regulations, escheat laws and laws
covering consumer privacy, data protection and information security. Proposed legislation relating to financial
services providers and consumer protection in various jurisdictions around the world may also affect the
manner in which we provide our services.
In the United States, several bills pending in the Senate and House of Representatives could change the
way that financial services companies are regulated, managed and able to present their products and services
to consumers. It remains unclear how these various proposals will be reconciled and enacted, and how a final
version would affect our business. However, most of the proposals have in common the creation of a new
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