WEX(US:WEX)2026-02-13 19:14Regulatory Compliance - WEX Bank is now subject to the Durbin Amendment, which regulates interchange fees for debit transactions, requiring them to be "reasonable and proportional" to the costs incurred [88]. - Compliance with the Dodd-Frank Act has added costs to the business, with potential future regulations possibly increasing these costs further [89]. - WEX Bank's reliance on brokered deposits is subject to restrictions unless the institution is "well capitalized," impacting funding strategies [91]. - The company faces significant anti-money laundering compliance obligations, including monitoring and reporting unusual account activity [92]. - WEX's operations are subject to various international privacy and data protection laws, including GDPR in Europe, which imposes stringent privacy protections [104]. - The company must comply with the Health Insurance Portability and Accountability Act (HIPAA) regarding the privacy and security of protected health information [104]. - WEX Bank is required to maintain a comprehensive written information security program under the Gramm-Leach-Bliley Act (GLBA) [100]. - The company is subject to various U.S. laws governing money transmission and payment instruments, with compliance costs expected to increase in the future [110]. - WEX's European operations must comply with the Payment Services Directive (PSD2) and the Electronic Money Directive (EMD2) [111]. - Optal Financial Limited in the UK is authorized as an electronic money institution and must comply with the Electronic Money Regulations and Payment Services Regulations [113]. - The company is required to comply with anti-bribery and corruption laws in the jurisdictions it operates, including the FCPA and UK Bribery Act 2010 [126]. Market Risks - The company is exposed to market risks including interest rates, foreign currency exchange rates, and commodity prices, with derivative instruments used to manage these risks [401]. - As of December 31, 2025, the company had $4.3 billion invested in current available-for-sale debt securities at fair value, with a potential decrease in fair value of less than 2 percent from a hypothetical 25 basis points increase in interest rates [406]. - A 1 percent hypothetical increase in interest rates could result in an estimated impact on interest expense of $30.5 million for the Credit Agreement and $12.7 million for short-term debt [411]. - The company does not currently hedge against fuel price fluctuations, estimating that a one cent decline in average domestic fuel prices could lead to a $2.0 million decline in revenue for 2026 [402]. - If all currencies in which the company earned revenue weakened or strengthened by 10 percent against the U.S. dollar, revenues and operating income would each change by approximately 2 percent or less [403]. Financial Obligations - The company has a remaining obligation for deferred acquisition payments of $80.7 million, plus interest, related to the purchase of SBI's remaining 4.53 percent interest in PO Holding [409]. - The company has approximately $1.2 billion of outstanding deposits and $1.3 billion of short-term borrowings to fund working capital needs in its Mobility and Corporate Payment businesses [408]. - The company is subject to various regulatory requirements regarding the payment of dividends, including maintaining capital above regulatory minimums [123]. - The company has terminated all outstanding interest rate swap agreements as of December 12, 2023, to manage interest rate risk [407].