Company: IIIV
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001728688-25-000122
Chunk: 25

Company: i3 Verticals, Inc.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 1
Chunk 25
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 industry are subject to extensive and complex federal, state and local laws and regulations, including those relating to privacy and security of health and other personal information, interoperability and information blocking, billing and coding for services and fraud and abuse. Although many of these regulatory requirements do not directly apply to our operations, these requirements may affect the businesses of certain of our customers and may impact our services. The potential consequences for violating applicable laws or regulations may include administrative, civil and criminal sanctions and penalties, including exclusion from participation in Medicare, Medicaid and other federal and state healthcare programs. 

For example, regulations promulgated pursuant to the Health Insurance Portability and Accountability Act of 1996 (collectively "HIPAA"), which establish privacy and security standards that limit the use and disclosure of certain individually identifiable health information, require safeguards to ensure the confidentiality, integrity and availability of such information, and require notifying affected individuals and the government of breaches. 

Prior to the sale of our Healthcare RCM Business, we provided billing and coding services, claims processing and other solutions to providers. Medical billing, coding and collection activities that were governed by numerous federal and state laws, regulations, including laws prohibiting false or fraudulent claims, the federal Anti-Kickback Statute (“AKS”), and the Civil Monetary Penalties Law. Although we believe that our business relationships were structured to comply with applicable laws, we cannot provide assurance that regulatory authorities enforcing these laws would determine these financial arrangements complied with applicable laws. In addition, we relied on our customers to provide us with accurate and complete information and to appropriately use the solutions we provided to them, but they may have not always done so.

Anti-Money Laundering and Counter-Terrorism Regulation 

Our business is subject to U.S. federal anti-money laundering laws and regulations, including the Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001, which we refer to collectively as the “BSA.” The BSA, among other things, requires money services businesses to develop and implement risk-based anti-money laundering programs, report large cash transactions and suspicious activity and maintain transaction records. We are also subject to certain economic and trade sanctions programs that are administered by the Office of Foreign Assets Control (“OFAC”) that prohibit or restrict transactions to or from (or transactions dealing with) specified countries, their governments and, in certain circumstances, their nationals, such as those who might be narcotics traffickers and terrorists or terrorist organizations. Similar anti-money laundering, counter terrorist financing and proceeds of crime