Western Union 2014 Annual Report Download - page 181

2014 FORM 10-K
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Our consolidated balance sheet may not contain sufficient amounts or types of regulatory capital to meet the changing
requirements of our various regulators worldwide, which could adversely affect our business, financial condition and results
of operations.
Our regulators expect us to possess sufficient financial soundness and strength to adequately support our regulated
subsidiaries. We had substantial indebtedness as of December 31, 2014, which could make it more difficult to meet these
requirements if such requirements are increased. In addition, although we are not a bank holding company for purposes of United
States law or the law of any other jurisdiction, as a global provider of payments services and in light of the changing regulatory
environment in various jurisdictions, we could become subject to new capital requirements introduced or imposed by our
regulators that could require us to issue securities that would qualify as Tier 1 regulatory capital under the Basel Committee
accords or retain earnings over a period of time. Also, our regulators specify the amount and composition of settlement assets
that certain of our subsidiaries must hold in order to satisfy our outstanding settlement obligations. These regulators could further
restrict the type of instruments that qualify as settlement assets or these regulators could require our regulated subsidiaries to
maintain higher levels of settlement assets. For example, we have seen increased scrutiny from government regulators regarding
the sufficiency of our capitalization and the appropriateness of our investments held in order to comply with state and other
licensing requirements. Any change or increase in these regulatory requirements could have a material adverse effect on our
business, financial condition and results of operations.