AUTOMATIC DATA PROCESSING INC (ADP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that AUTOMATIC DATA PROCESSING INC surfaced in its latest filing.

• ADP registered its prepaid card business as a provider of prepaid access, and registered ADP Trust Bank and ADP Retirement Trust Services with the Treasury Department’s Financial Crimes Enforcement Network.
• ADP Canada Co. registered as a Money Services Business with FINTRAC and a Payment Service Provider with the Bank of Canada.
• Implemented Binding Corporate Rules (BCRs) as both a data processor and data controller under the GDPR.
• The Department of Justice implemented a Data Security Program under Executive Order 14117 restricting certain transfers of U.S. persons' sensitive data to 'countries of concern' and the company has taken steps to comply.
• The Company extends the maturities of its investment portfolio for client funds and uses short-term financing arrangements to satisfy short-term funding requirements.
• The Company relies on borrowings under its commercial paper program, committed credit facilities, regular reverse repurchase transactions, committed reverse repurchase agreements, and corporate cash balances for liquidity.