Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 18

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 18
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 may
conflict with those of another jurisdiction. As United States federal and state as well as foreign legislative and regulatory scrutiny
and enforcement action in these areas increase, we expect that our costs of complying with these requirements could continue to increase,
perhaps substantially, and may make it more difficult or less desirable for consumers and others to use our services or for us to contract
with certain intermediaries, either of which would have an adverse effect on our revenue and operating income. For example, we expect
to make investments in our compliance programs based on the rapidly evolving and increasingly complex global regulatory and enforcement
environment and our internal reviews. These additional investments relate to enhancing our compliance capabilities, including our consumer
protection efforts. Further, failure by us or partners and service providers to comply with any of these requirements or their interpretation
could result in the suspension or revocation of a license or registration required to provide money transfer, payment or foreign exchange
services, the limitation, 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