Western Union 2015 Annual Report Download - page 143

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On January 31, 2014, the Southwest Border Agreement was amended to extend its term until December 31, 2017 (the
"Amendment"). The Amendment imposes additional obligations on the Company and WUFSI in connection with WUFSI’s anti-
money laundering ("AML") compliance programs and cooperation with law enforcement. In particular, the Amendment requires
WUFSI to continue implementing the primary and secondary recommendations made by the Monitor appointed pursuant to the
Southwest Border Agreement related to WUFSI’s AML compliance program, and includes, among other things, timeframes for
implementing such primary and secondary recommendations. Under the Amendment, the Monitor could make additional primary
recommendations until January 1, 2015 and may make additional secondary recommendations until January 31, 2017. After
these dates, the Monitor may only make additional primary or secondary recommendations, as applicable, that meet certain
requirements as set forth in the Amendment. The Monitor has made more than 70 primary recommendations and groups of
primary recommendations. Primary recommendations may also be re-classified as secondary recommendations.
The changes in WUFSI’s AML program required by the Southwest Border Agreement, including the Amendment, and the
Monitor’s recommendations have had, and will continue to have, adverse effects on the Company’s business, including additional
costs. Additionally, and as described in detail in Part II, Item 8, Financial Statements and Supplementary Data, Note 5,
"Commitments and Contingencies," if WUFSI is not able to implement a successful AML compliance program along the U.S.
and Mexico border or timely implement the Monitor’s recommendations, each as determined by the Monitor, the State may
pursue remedies under the Southwest Border Agreement and Amendment, including assessment of fines and civil and criminal
actions. The Company submitted all of the primary recommendations to the Monitor for review prior to an October 31, 2015
deadline and is currently in the process of demonstrating its compliance with the primary recommendations, but is unable to
predict whether the Monitor will conclude that WUFSI has implemented an effective AML compliance program and whether
the Monitor's primary and secondary recommendations have been successfully implemented. Should the State pursue remedies
under the Southwest Border Agreement, the Company could face significant fines and actions which could have a material
adverse effect on the Company’s business, financial condition, results of operations, and cash flows.
Other Matters
As further described under Part I, Item 3, Legal Proceedings, the Company is the subject of ongoing investigations, including
by (1) various United States Attorneys' offices; (2) various state attorneys general; and (3) the United States Federal Trade
Commission (the "FTC"). Due to the stage and nature of these continuing investigations, the Company is unable to predict their
outcome, or the possible loss or range of loss, if any, which could be associated with the resolution of any possible criminal
charges or civil claims that may be brought against the Company. Additionally, as it has done in recent years, the Company may
enter into consent agreements with governmental authorities (federal, state, local, and foreign) relating to these or other regulatory
matters that could require us to make various payments and to take certain measures to enhance our compliance with applicable
legal requirements. Should governmental authorities determine to bring criminal charges or civil claims, or if the Company
enters into additional consent decrees with governmental authorities, the Company's business, financial condition, results of
operations, and cash flows could be adversely affected. Further, the Company regularly receives subpoenas and other requests
for documents and information from governmental authorities concerning our business, current or former agents, customers or
other third parties. We cooperate with such subpoenas and requests in the ordinary course of our business. However, it is possible
that, during the course of any investigation or review by such governmental authorities, allegations of misconduct or wrongdoing
could arise regarding Western Union, its employees, current or former agents, customers or other third parties, which could lead
to investigations or enforcement actions against us.
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