Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 189

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 189
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, suspension or termination of services, changes to our business model, loss of consumer confidence, the seizure
of our assets, and/or the imposition of civil and criminal penalties, including fines and restrictions on our ability to offer services.
We are subject to numerous regulations such as those imposed by the Foreign Corrupt Practices Act (the “FCPA”) in the United
States and similar laws in other countries, which generally prohibit companies and those acting on their behalf from making improper
payments to foreign government officials for the purpose of obtaining or retaining business. Some of these laws, such as the Bribery
Act, also prohibit improper payments between commercial enterprises. Because our services are offered in other countries, we face significant
risks associated with our obligations under the FCPA and other national anti-corruption laws. Any determination that we have violated
these laws could have an adverse effect on our business, financial condition, results of operations, and cash flows. Our United States
business is subject to reporting, recordkeeping and anti-money laundering provisions of the federal Bank Secrecy Act and could be subject
to regulatory oversight and enforcement by U.S. Financial Crimes Enforcement Network (FinCEN).

The remittance and digital
payments industry has come under increasing scrutiny from government regulators and others in connection with its ability to prevent
its services from being abused by people seeking to defraud others. Our failure to continue to help prevent frauds and increased costs
related to the implementation of enhanced anti-fraud measures, or a change in fraud prevention laws or their interpretation or the manner
in which they are enforced has had and could in the future have an adverse effect on our business, financial condition, results of operations,
and cash flows.

Further, any determination
that our partners have violated laws and regulations could seriously damage our reputation and brands, resulting in diminished revenue
and profit and increased operating costs. In some cases, we could be liable for the failure of our partners to comply with laws which
also could have an adverse effect on our business, financial condition, results of operations, and cash flows. The regulations implementing
the remittance provisions of the Dodd-Frank Act also impose responsibility on us for any related compliance failures of our partners.

The requirements under
the U.S. Dodd-Frank Act, the European Revised Payment Services Directive and similar legislation enacted or proposed in other countries
have resulted and will likely continue to result in increased compliance costs, and in the event we or our agents are unable to comply,
could have an adverse impact on our business