Annual Report
2023
2023 Annual Report
2
Chair’s Statement
3
CEO’s Statement
4
The LEI in 2023
5
Regulation 2023: A Driving Force Behind Global LEI Adoption
7
2024: Strategic Milestones
8
Consolidated Financial Statements
10
Notes to the Consolidated Financial Statements
15
Independent Auditor’s Report
34
Overview of Professional Advisors
35
Abbreviations
36
Contact Us
37
Contents
2023 Annual Report
3
Chair’s Statement
Recent years have brought substantial strategic and
operational change within GLEIF. Yet the goal remains
constant: to expand the benefits of the Legal Entity
Identifier (LEI) beyond its mandated use as a tool to enhance
transparency in financial markets and to encourage its
voluntary adoption across all markets globally. GLEIF made
significant advances in 2022, with the introduction of the
verifiable LEI (vLEI) and expanded on-the-ground presence
for GLEIF across Europe, North America, and Asia. In 2023,
we continued this progress, and have strengthened the
foundations we are creating for the future growth of the
Global LEI System (GLEIS) and expanded use of the LEI
and vLEI as valuable tools for conducting business.
LEI drivers and successes in 2023
GLEIF’s success in 2023 was intentional, expansive and multi-
faceted. This year we have:
•
Expanded LEI issuance, driving volumes to a new record high
of 2.41 million.
•
Reinforced the relevance, utility, and value of the Global LEI
Index for data users globally with a continued focus on data
quality enhancements.
•
Galvanized wide industry support for the LEI. Most notably
we received endorsements from the Bank of International
Settlements (BIS) Committee on Payments and Market
Infrastructure (CPMI) and the Wolfsberg Group to include
the LEI as a data field within ISO 20022 cross-border
payments messages. This ensures that it is now firmly
embedded within the payments industry as a tool to help
the fight against financial crime.
•
Won advocacy for LEI adoption in other markets through
targeted engagement and continuous promotion of the
LEI’s potential to deliver trust, efficiency and transparency
in any identity management system. Key drivers here have
included:
•
The inclusion of the LEI within the Markets in Crypto-
Assets (MiCA) regulatory framework. From May 2023,
obtaining an LEI is a pre-requisite for providing crypto-
asset services in the EU.
•
Easing access to trade financing and global supply chains
through active engagement with influential stakeholders
to raise visibility of the LEI.
•
Enhancing transparency in relation to Environmental,
Social, and Corporate Governance (ESG) credentials.
GLEIF has committed to exploring the development of
digital ESG credentials that can be transmitted with
LEIs to support financing and supply chain inclusion. A
collaboration with the United Nations Development
Programme (UNDP) and the Monetary Authority of
Singapore (MAS) is in progress.
A growing critical mass of regulatory endorsement is
quickening the pace of cross-industry momentum.
Recognition among regulators that the LEI is a key data
and identity connector, that enables critical data sets to be
efficiently matched, is spreading fast. And it’s easy to see why.
The LEI is already mapped to a myriad of other identifiers to
provide a comprehensive view of a legal entity, including the
OpenCorporates ID, S&P Global Company ID, SWIFT’s Market
Identifier Code (MIC) and Business Identifier Code (BIC), and
the Association of National Numbering Agencies (ANNA)
International Securities Identification Number (ISIN). Further
possibilities are endless, including the potential use of the LEI
as a common denominator that binds together an entity’s
different identifiers issued across multiple US agencies and
international authorities. There are countless ways in which
the LEI can add value by ‘connecting the dots’. The ability to
map across geographies and agencies is key to creating a
holistic understanding of complex entities and networks that
can be used to identify fraud.
Digital entity identities:
vLEI progress
Throughout 2023, GLEIF continued to bring to life a digitally
trustworthy version of the LEI, the vLEI, by continuing to expand
the supporting infrastructure. The focus has remained on
establishing the LEI and the vLEI as enablers
of digital trust across multiple value chains where digital trust
is a central principle.
The capacity for the vLEI to verify organizational identity
while promoting trust and transparency in the rapidly
digitizing global economy is unparalleled. The vLEI enhances
the LEI ecosystem by providing an open, reliable, highly
scalable digital cross-border entity identification solution
that seamlessly integrates into regulated frameworks. This
innovation is poised to significantly boost LEI adoption
beyond regulatory requirements and mandates. Imminent
drivers to propel the LEI and vLEI adoption into new and
emerging markets include the fight against financial
crime and fraud prevention in cross-border payments, and
international trade and supply chains among many more.
A decade of GLEIF: celebrating
past success and greeting future
opportunities
GLEIF enters its tenth anniversary year in 2024. While there will
be celebrations to mark the ten-year anniversary, it will also be
a year of significant transition. Our esteemed CEO, Stephan
Wolf, is stepping down from his GLEIF role this summer. He has
served GLEIF since its inception and has devoted his professional
energies over the past ten years to creating a stable and global
ecosystem that enables the implementation of a unique and
universal entity identifier that has been harnessed for public
good across the globe. On behalf of the Board and my GLEIF
colleagues, I wish to offer Stephan heartfelt thanks for his
contribution to GLEIF over the years and wish him future success
and prosperity. The leadership transition process is already
underway, and I look forward to introducing GLEIF’s new CEO
who will lead us as we embark on our next chapter.
As GLEIF ends the year with progress made on many fronts, I
want to acknowledge that success is driven enthusiastically by
an ecosystem of invested stakeholders including LEI Issuers,
Registration Agents and Validation Agents, the Regulatory
Oversight Committee (ROC), the GLEIF Board, and my GLEIF
colleagues around the world, who comprise the GLEIS. I would
like to thank these and other stakeholders and users of the LEI
for working tirelessly to evolve and expand the GLEIS to enable
broader use and adoption of the LEI and vLEI. Your contributions
and commitments are greatly appreciated.
We are proud of the strides GLEIF made this year and are
excited about the possibilities that lie ahead. As we continue to
promote the use of LEIs within cross-border payments, trade
financing, supply chains and various other applications, we
will also continue to expand the vLEI ecosystem and facilitate
the LEI issuance process, by expanding our Validation Agent
network globally. I am honoured to be part of such a dynamic
and purpose-driven organization and look forward to working
with my colleagues and stakeholders to guide GLEIF toward the
opportunities and through the challenges that the year ahead
will bring.
Teresa A Glasser
Chair of the Board of Directors,
Global Legal Entity Identifier
Foundation (GLEIF)
2023 Annual Report
4
Stephan Wolf
Chief Executive Officer,
Global Legal Entity Identifier
Foundation (GLEIF)
CEO’s Statement
2023 was a progressive year which brought us closer to a
future where mass LEI adoption underpins broad public good.
Significant ground was gained thanks to powerful advocacy
for LEI usage across new markets and applications. Support
from high-profile champions, and GLEIF’s ongoing commitment
to delivering an entity identity management ecosystem that
responds to the needs of all, resulted in the GLEIS becoming
stronger and more relevant than ever.
LEI adopted in ISO 20022
payments messages
One of GLEIF’S most notable achievements this past year
has been to gain the payment industry’s acceptance and
impending adoption of the LEI as a critical tool in the global
fight against financial crime and fraud prevention. This is
thanks to the interoperability and transparency it provides
in cross-border payment flows. Through a sustained industry
engagement program, and against the backdrop of Financial
Stability Board (FSB) endorsement for the LEI in cross-border
payments, GLEIF galvanized advocacy at the most influential
levels in 2023:
•
GLEIF worked with leading payments industry stakeholders,
including Bloomberg, the London Stock Exchange,
and Moody’s, to demonstrate the value the LEI brings
to non-financial corporates and financial institutions
when transmitted in cross-border payment flows.
•
Project Aurora - an analysis by the BIS Innovation Hub
- identified ‘data quality and standardization of the
data identifiers and fields’ contained within the payment
messages as important factors in detecting financial crime.
A proof-of-concept acknowledged that greater use of the
LEI could support the development of data standards. This
supported findings from the Financial Action Task Force
(FATF), which identified data-sharing, data standardization,
and advanced analytics as underpinning effective anti-
money laundering (AML) and counter-terrorist financing
initiatives across borders.
•
The BIS CPMI published its ‘Harmonized ISO 20022 data
requirements for enhancing cross border payments’.
Following industry feedback, the CPMI recognized the
LEI as an equivalent identifier to the BIC for identifying
financial institutions and legal entities within a payment
message. The report was supported by the Bank of England,
Chinese Cross-border Interbank Payment System (CIPS),
European Central Bank and the Reserve Bank of Australia,
among others.
•
The Wolfsberg Group published its updated Payment
Transparency Standards, which support the use of the
LEI within ISO 20022 payments messages to enhance
the accuracy of identification information.
The unprecedented levels of support secured for the LEI
within the payments world last year, culminating in its
inclusion as a data field in ISO 20022 payments messages,
signals that it’s now only a matter of time before we see its
mass use in cross-border payments. Acceptance on this scale
is transformative; payment industry endorsement for the
LEI’s ability to help prevent financial crime and fraud
strengthens its case as a solution to other global challenges
faced across the economy.
Growing momentum for LEI in
trade finance and supply chains
Elsewhere, advocacy is building for the LEI’s potential to help
simplify complex and opaque supply chains and support the
digitalization of global trade. Last year advances were made
on both fronts:
•
GLEIF, the UNDP and the MAS, collectively signed a
statement of intent to embark on an initiative to develop
digital ESG credentials for micro, small and medium-sized
enterprises (MSMEs) worldwide. Known as Project Savannah,
this initiative establishes universal ESG metrics for global
MSMEs. It allows MSMEs to create unique LEIs and digital
credentials, improving access to green finance.
•
GLEIF contributed to the World Trade Board’s Financial
Inclusion in Trade Roadmap, to promote the benefits that
a unique entity identifier, such as the LEI, could bring in
supporting the financial inclusion among MSMEs globally.
•
I have been co-chairing the Digital Standards Initiative
(DSI) Trusted Technology Environments Working Group
throughout 2023. This working group supports the
development and implementation of recommendations for
the International Chamber of Commerce (ICC) Industry
Advisory Board. The group published a paper, Trust in Trade,
in 2023, which recognized verifiable trust as a foundational
digital layer that underpins global supply chains.
•
Last but not least, I was appointed as member of the Board
of ICC Germany, the German national committee of ICC.
Reflections on a decade of
GLEIF leadership and the digital
strategy with the vLEI
After a decade of incredible experiences and achievements, I
will officially step down from my role as GLEIF CEO in June 2024.
I am privileged and proud to have led GLEIF from its infancy to
the thriving and successful organization it has become today. As
we enter 2024, GLEIF’s tenth anniversary year, the organization
and its cause stand stronger than ever, and our teams are fully
committed to navigating the exciting opportunities ahead.
GLEIF has had many successes, most recently reflected in our
digital strategy. The introduction of the vLEI has opened new
avenues for growth and possibilities. The European Banking
Authority (EBA) published a discussion paper on Pillar 3 data
hub processes, and possible practical implications for the
regulatory uses cases, on how to solve organisational identity
and authentication challenges in the context of supervisory
reporting, with the Pillar 3 data hub as a relevant use case.
The Pillar 3 data hub is a key strategic project that will provide
a single access to the disclosures data by all institutions of the
European Economic Area (EEA). The discussion paper included
a section on the vLEI. The vLEI was proposed within an EBA use
case for regulatory reporting as a possible scalable and secure
solution for the efficient submission of Pillar 3 data by large and
other institutions on the European Centralized Infrastructure
of Data (EUCLID) platform.
EBA and GLEIF are currently carrying out the Pillar 3 pilot project
in collaboration with 17 banks. This initiative aims to validate the
end-to-end process from the initial onboarding of banks through
to them being provided with digital wallets, and the integration
of vLEI into the EUCLID regulatory reporting portal.
I offer my sincere gratitude to all of my GLEIF colleagues and
the GLEIS stakeholders who have helped make my tenure at
the helm of GLEIF a successful and fulfilling one. The future of
the LEI/vLEI holds great promise, and I am confident that GLEIF
will thrive under the capable leadership that will guide us into
the next chapter. Thank you for your continued support.
2023 Annual Report
5
The LEI in 2023
Active LEIs by region:
LEI volumes hit a record high in 2023
2.41
million
active LEIs
globally
37
by the end
of 2023
240,000+
LEIs issued
in 2023
11%
annual growth
rate*
249
jurisdictions
with LEI
services
As of 2023, Dec, 31
New collaborations
and partners broadened
the scope of the
Global LEI System:
New mapping partnerships
New Validation Agents
Total LEI issuers
*The annual growth rate is based on new issuance in 2023 compared with total number of active LEIs in 2022.
Americas
428,749
Europe
1,606,461
Africa
10,776
Oceania
37,093
Asia
325,897
2023 Annual Report
6
Top 5 countries by LEI issuance:
285,797
US
190,368
Germany
183,924
UK
181,753
Italy
151,900
Spain
Top 5 countries by renewal rate
1
:
94.5%
Hungary
91.8%
Japan
84.6%
Finland
79.5%
Germany
79.4%
India
Top LEI growth jurisdictions in 2023:
5 most competitive markets
2
:
New data available in the Global LEI System
At the end of 2023 there were:
• Approx. 6,000 government entities
• Approx. 131,000 legal entities reporting fund relationships
• 38 international organizations
Luxembourg PortugalBulgaria Hong Kong Belgium
1
Renewal rates
Renewal means that the reference data,
i.e., the publicly available information on
legal entities identifiable with an LEI, is
re-validated annually by the managing LEI
issuer against a third-party source.
2
Competitive markets
So called ‘competitive markets’ refer to
those with over 1,000 LEIs, based on the
number of LEI issuers providing services
in the jurisdiction. The most competitive
markets are those with the most LEI issuers
per jurisdiction, with similar market share.
The LEI in 2023
Continued growth across
the Global LEI System
Global trends in LEI issuance
6
+19.3%
Iceland
+20.6%
United Arab
Emirates
+19.5%
+35.9%
+58.3%
Saudi Arabia
India
Hungary
2023 Annual Report
Regulation 2023:
A Driving Force Behind
Global LEI Adoption
Advocacy for the LEI from within the global regulatory
community is stronger than ever and continues to expand
across jurisdictions and markets. Influential support has
been secured for LEI use as a required or recommended
component of entity identity management systems. As
a result, the LEI now brings trust and transparency to an
unprecedented number of regulated activities globally.
➜ Capital markets
➜ Trade and transactions
➜ Customs
➜ Payments
➜ Crypto-assets
➜ Digital finance
➜ Supervisory reporting
➜ Non-financial reporting
➜ Insurance
➜ Corporate debt lending
➜ Anti-money laundering
➜ Financial Data Transparency Act (US)
➜ Open finance
➜ Alternative Investment Funds
➜ Crypto asset service provider transparency
➜ Trade and technology
➜ Trust services
➜ OpenCorporates ID
➜ S&P Global Company ID
➜ SWIFT's MIC and BIC
➜ ANNA
➜ ISIN
Additionally, GLEIF and Open Ownership collaborate to
allow easy identification of corporate beneficial owners
and controllers by facilitating mapping to datasets, such as
sanctions, watch and Politically Exposed Person (PEP) lists.
GLEIF actively participates in relevant public
consultations published by regulators and organizations
to highlight the added value of the LEI. GLEIF prioritizes
this activity to raise awareness of the LEI and further
drive its global use. In 2023, GLEIF responded to 36
consultations across 8 jurisdictions.
Advancing regulatory support drove momentum in the
market. GLEIF supported many pilots which demonstrated
the value of the LEI when transmitted in cross-border
payment flows. Five use cases were identified: screening;
Know Your Customer (KYC) and client onboarding; fraud
detection and fight against vendor scams; e-invoice
reconciliation; and account-to-account validation.
Spotlight on financial
fraud prevention:
The LEI in cross-border payments
Champions include:
➜ The FSB
➜ BIS Innovation Hub
➜ The BIS CPMI
➜ The Wolfsberg Group
➜ Swift Payments Market Practice Group
➜ The FATF
➜ Bank of England
➜ CIPS
➜ Bloomberg
➜ C2FO
➜ Ceviant
➜ Element22
➜ Finema
➜ Legal Entity Identifier
India Limited
➜ Moody’s
➜ Open Ownership and
Open Sanctions (The
Transparency Fabric)
➜ REGTEK (Beijing)
Technologies
➜ The London Stock
Exchange
➜ WM Datenservice
➜ Japan eSeal
Consortium
(Hitachi, Ltd.; Secom
Trust Systems Co., Ltd.;
Seiko Solutions Co., Ltd.;
Keio University; TEIKOKU
DATABANK, LTD. InfoCert
S.p.A.; Société Internationale
de Télécommunications
Aéronautique)
Pilots were initiated with:
Public consultations
7
The LEI is a key data and identity
connector that enables critical data sets
to be efficiently matched. It is mapped
to the following identifiers to provide a
holistic view of an organization:
The LEI is being used by regulators
worldwide to verify counterparty
identification related to:
Moving into 2024, and beyond,
the LEI is poised to support additional
use cases including:
2023 was a milestone year for the LEI in cross-border
payments. Industry advocacy for the inclusion of the
LEI within ISO 20022 payment messages promises
to support faster, cheaper, more transparent
and inclusive cross-border transactions.
2023 Annual Report
8
Recognition for the
LEI as a public good
The LEI was introduced to increase transparency within the
global marketplace. From the outset, its endorsers, including
the G20 and the FSB, aspired for it to become a broad public
good. 2023 was a transformative year in meeting that goal.
Regulatory support and developments within the global
payments community pushed forward to advance the public
good on two levels:
•
The fight against financial crime:
The BIS and the FATF identified data sharing, data
standardization and advanced analytics as key
components of effective initiatives to fight financial crime
across borders. Thanks to a proof-of-concept undertaken
as part of BIS’ Project Aurora, there is now widespread
recognition that the LEI can be leveraged to support
data standards and mitigate AML and Counter-Terrorist
Financing (CTF) risks.
GLEIF also collaborated with Open Ownership and
OpenSanctions in the Transparency Fabric, an initiative
that uses the LEI to reduce illicit finance risks particularly
in the context of cross-border and instant payments.
Sanctions and AML screening techniques were enhanced
by the integration of standardized and high-quality LEI
data into sanctions and PEP lists to expose links with other
entities. Mapping the LEI to both Open Ownership and
OpenSanctions data makes it significantly easier to trace
parties engaged in money laundering, terrorist financing
and sanctions evasion.
2024: Strategic
Milestones
The value of the LEI in Cross-Border Payment Flows
•
Prevention against financial fraud:
CPMI and Wolfsberg Group support led to the inclusion
of the LEI as a data field within ISO 20022 payments
messages in 2023. The Wolfsberg Group is an association
of 12 global banks which aims to develop frameworks and
guidance for the management of financial crime risks.
When the LEI is added as a data attribute in payment
messages, any originator or beneficiary legal entity can
be precisely, instantly, and automatically identified across
borders, supporting enhanced fraud prevention efforts.
Elsewhere, the LEI has been recognized for its potential to
enhance transparency within sustainability reporting and
GLEIF was involved in a number of initiatives throughout
the year. One such initiative saw GLEIF collaborate with the
UNDP and the MAS to initiate a project to digitize basic ESG
credentials for MSMEs. The three parties signed a statement
of intent to work together on Project Savannah, an initiative
that aims to help simplify the ESG reporting process for
MSMEs by leveraging digital initiatives such as MAS’ Project
Greenprint
1
to generate ESG data credentials that can be
housed in MSMEs’ LEI records.
This will enable MSMEs to transmit verified entity information
and key ESG data to their business partners, strengthening
their ability to gain access to global financing and supply
chain opportunities.
LEI mandates strengthen regional volumes
The highest LEI growth rates in 2023 were reported in Saudi
Arabia and India, with growth of 58.3% and 35.9% respectively.
Both countries have a key driver in common – their central
banks mandating greater use of the LEI. In Saudi Arabia,
the number of LEIs issued has been steadily increasing in
recent years, largely thanks to coordinated efforts by the
Saudi Credit Bureau (SIMAH) and the Saudi Central Bank
to encourage financial sector players to obtain an LEI.
The Reserve Bank of India (RBI) has also been a pivotal force
for the success of the LEI in the Indian market, proactively
driving an advanced regulatory agenda over several years.
Following a string of RBI mandates dating back to 2017, which
have embedded the LEI at the heart of the Indian economy as
a critical business enabler, regulatory momentum continued
in 2023. In a move heralded by the RBI as an important
measure to promote stability and resilience across the Indian
financial system, the Securities Exchange Board of India (SEBI)
mandated the LEI for issuers of listed or proposed to list
non-convertible securities, securitised debt instruments, and
security receipts. Furthermore, SEBI directed the depositories
One global identity behind every business.
Inspired by this singular purpose, GLEIF
made a powerful impact in 2023.
The organization successfully supported regulatory
consultations and voluntary deployments across
diverse use cases and geographies, enabling the LEI to
benefit new markets. The GLEIS was strengthened and
extended, resulting in expanded utility and relevance.
Importantly, a critical mass of support was secured
for the LEI’s value as a public good in aiding the fight
against financial crime and preventing fraud. The pace
of industry momentum behind the use of the LEI in
financial flows is a testament to its vast potential to
strengthen the world’s defenses against cross-border
criminality.
1
Project Greenprint is a collection of initiatives that aims to harness technology and data to enable
a more transparent, trusted and efficient ESG ecosystem to enable green and sustainable finance.
Automated Enterprise Resource
Planning (ERP) system supplier
verification with digital credentials
with LEI embedded
Automated search of LEI
Index to gain rich, verified
data about legal entity
Verification via digitally
signed e-invoice with LEI
embedded
Ensures the LEI associated
with the account being
credited matches the
payment information
2023 Annual Report
9
to map the LEI code of issuers to their existing or newly issued
ISIN. SEBI also mandated an active LEI for non-individual
foreign portfolio investors (FPIs).
Elsewhere, the UK’s central bank, the Bank of England,
introduced the LEI into ISO 20022 payment messages for
its Clearing House Automated Payment System (CHAPS)
real-time gross settlement system on an ‘optional to send’
basis in June 2023. The bank has encouraged all CHAPS Direct
Participants – which include traditional high-street banks and
a number of international and custody banks – to start using
LEIs as early as possible.
Yet it’s not just central banks driving regional interest and
mandates in key territories. The US Customs and Border
Protection’s Global Business Identifier (GBI) initiative got
underway in 2023. The aim is to develop a single identifier
solution that: improves the US Government’s ability to
pinpoint high-risk shipments and facilitate legitimate
trade; creates a ‘common language’ between government
and industry; and improves data quality and efficiency for
identification, enforcement, and risk assessment. Three entity
identifiers, including the LEI, are being tested to determine
the optimal combination. The outcome of this, and the
impending Financial Data Transparency Act in 2024, could
have a significant impact on future LEI volumes in the US.
Advancing cross-border digital trust
GLEIF’s digital strategy for the LEI centers on two methods
for cryptographically binding the LEI to its organization:
digital certificates and verifiable credentials (the vLEI).
While GLEIF continued to work on expanding the vLEI
infrastructure, an exciting development in 2023 advanced
the use of the LEI within digital certificates.
TrustAsia became the first Certificate Authority (CA) to issue
a Secure/Multipurpose Internet Mail Extensions (S/MIME)
Certificate with an embedded LEI. At the simplest level, this
allows the authenticity and integrity of an email account
associated with a legal entity to be validated. S/MIME is
an established, widely used protocol for sending digitally
signed and encrypted email messages. An S/MIME Certificate
contains a public key bound to an email address and may
also contain the identity of a natural person or legal entity
that controls such email address. This can then be used to
authenticate the individual or legal entity that sends an email
and ensure it has not been tampered with by a third-party.
Embedding LEIs into S/MIME Certificates offers myriad
benefits. It provides an additional layer of trust since the
LEI is a global secure mechanism that provides reliable
data on organizational identity. S/MIME Certificates with
embedded LEIs also provide a direct link to the regularly
updated LEI reference data via the Global LEI Index to enable
more automated, consistent data checks, regardless of the
organization’s location. The result is a robust and reliable
validation of an organization’s data, together with the
identity of those acting on behalf of the company.
Strengthening the Global LEI System
The GLEIS grew stronger in 2023, with new partnerships and
collaborations extending the reach and relevance of the LEI
to new audiences.
•
VerifyVASP became GLEIF’s newest Validation Agent, and
the first to operate exclusively in the crypto and digital asset
trading space. In this role, VerifyVASP can help obtain LEIs
for its Virtual Asset Service Provider (VASP) clients quickly
and efficiently, supporting increased transparency in crypto
and digital asset trading markets. This development helps to
deliver early FATF Travel Rule compliance for VASPs. The FATF
Travel Rule (Recommendation 16) is a crucial part of the FATF’s
Recommendations, which set out a framework of measures
that countries should implement in order to combat money
laundering and terrorist financing, as well as the financing
of proliferation of weapons of mass destruction. The Travel
Rule aims to mitigate the risks associated with the transfer
of virtual assets, especially in ownership identification. It
achieves this by mandating financial institutions and crypto
firms involved in virtual asset transfers to acquire and
exchange precise and reliable details of the originator and
beneficiaries of the transaction before or during the transfer.
•
GLEIF became an Associate Partner of the EU Digital
Wallet Consortium (EWC), which is a joint effort to leverage
the benefits of the proposed EU digital identity in the
form of Digital Travel Credentials across EU Member
States. The EWC intends to build on the Reference Wallet
Application to enable a use case focused on Digital Travel
Credentials. GLEIF expects this use case to necessitate the
use of multiple electronic attestation of attributes and
credentials as well as the involvement of both the private
sector and the public sector. GLEIF has therefore joined
the consortium to explore compliance of the vLEI with the
EU Digital Identity (EUDI) wallet.
What is the Global LEI System?
The GLEIS is the infrastructure that enables LEIs to be
issued to legal entities globally. The GLEIS operates in
three-tiers:
•
The Regulatory Oversight Committee (ROC) is a
group of more than 65 financial market regulators
and other public authorities and 19 observers from
more than 50 countries. It promotes the broad
public interest by improving the quality of data used
in financial data reporting, improving the ability
to monitor financial risk, and lowering regulatory
reporting costs through the harmonization of these
standards across jurisdictions. It oversees GLEIF to
ensure it upholds the principles of the GLEIS.
•
GLEIF supports the implementation and use of
the LEI. It makes available the Global LEI Index
which is the only global online source that provides
open, standardized and high-quality legal entity
reference data. It also provides services that ensure
the operational integrity of the GLEIS, such as the
accreditation of LEI issuing organizations.
•
LEI issuing organizations are accredited by GLEIF to
supply registration, renewal, and other services, and
act as the primary interface for legal entities wishing
to obtain an LEI.
•
GLEIF has become an Associate Sponsor of the
OpenWallet Foundation (OWF), which is a consortium of
companies and non-profit organizations collaborating to
drive global adoption of open, secure, and interoperable
digital wallet solutions. It also provides access to expertise
and advice through its Government Advisory Council. As
an advocate for these values, GLEIF’s collaboration with
the OWF included contributing to the Architecture Special
Interest Group and Credential Format Comparison Special
Interest Group.
2023 Annual Report
10
2023 Annual Report
10
Global Legal Entity Identifier Foundation (GLEIF)
Basel, Switzerland
Consolidated
Financial Statements 2023
for the Period from January 1 to December 31, 2023
Notes Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Fee revenue 3.1 1 5 , 52 6 ,924 14 , 3 82, 820
Wages and salaries -8,3 44,3 53 -7 ,301,04 1
Social contributions and expenses for pensions and care -1 ,0 5 5 , 2 07 -911, 79 2
Personnel expenses 3.2 -9, 3 9 9, 5 6 0 -8, 2 12, 83 3
Other operating expenses 3.3 -4,917 ,857 -4 , 0 8 8 ,91 7
Other operating income 3.4 198, 386 1 03, 333
Amortization and depreciation expense 4.5/4.6/4.7 -1,7 12,726 -1,59 2,50 1
Operating surplus / (loss) -304 ,833 59 1,9 02
Subsidies and donations 3.5 1, 217 5 ,031
Financial income / expense 3.6 24 ,7 38 -3 5 9, 4 8 0
Net surplus / (loss) -278, 878 237 ,453
Changes of components of net equity from actuarial gains and losses in pension
and similar obligations
3.2 -2 5 , 8 1 4 -4,7 39
Items that will not be reclassified to net surplus -2 5 , 8 1 4 -4,7 39
Other comprehensive income -2 5 , 81 4 -4 ,739
Total comprehensive income -3 04 , 692 232 ,7 14
Statement of Comprehensive Income
for the Period from January 1 to December 31, 2023
2023 Annual Report
11
Assets Notes Dec. 31, 2023 Dec. 31, 2022
US$ US$
Receivables from LEI issuers 4.1 2,010 , 929 2, 37 3 , 249
Current financial assets 4.2 11 ,54 5 11,8 86
Other assets 4.3 45 6 ,9 74 330, 606
Cash and cash equivalents 4.4 11 ,82 8, 6 49 11,27 5,6 46
Current assets 14, 308,097 13,991,3 87
Intangible fixed assets 4.5 1,49 4, 9 22 1,689,213
Tangible assets 4.6 224 , 5 29 205 ,2 99
Long-term financial assets 4.2 141 , 4 4 0 136 ,52 5
Right-of-use assets 4.7 3,062,0 04 3 , 4 7 7, 2 0 4
Non-current assets 4 ,922 , 89 5 5, 5 08 , 2 41
Balance Sheet
as at December 31, 2023
Liabilities and equity Notes Dec. 31, 2023 Dec. 31, 2022
US$ US$
Payables due to vendors 4.8 5 9 9, 8 3 0 80 2,608
Liabilities due to Board
Directors
6.1 15 ,395 15,518
Deferred revenue 4.9 24 4 , 67 3 0
Current financial liabilities 4.10 6 9 7,1 2 7 1 ,12 4 ,12 8
Other payables 4.11 1 ,9 0 7, 4 6 0 1,7 10,032
Deferred subsidies 3.5 0 1, 217
Current liabilities 3,464,485 3,653,503
Provision for pension costs 3.2 7 9, 2 1 3 45,01 0
Long-term financial liabilities 4.10 2,6 80, 463 2 , 4 8 9, 5 92
Non-current liabilities 2 ,759,676 2 , 53 4 , 602
Paid-in Foundation capital 55 ,92 7 55 ,92 7
Other reserves -2 ,12 5 23 ,689
Retained surplus 12 ,9 53 , 02 9 1 3 , 2 3 1 ,9 07
Organizational capital 4.12 13,006,831 13, 311,523
2023 Annual Report
12
Cash Flow Statement
for the Period from January 1 to December 31, 2023
Notes Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Net surplus / (loss) -278, 878 2 3 7, 4 5 3
Amortization and depreciation expense 1,7 12,7 26 1,5 9 2,50 1
Increase (decrease) of provisions 75 3 , 415
(Gains) / losses from the disposal of fixed assets -497 -6 , 420
Financial income / expense 6, 528 126 , 290
Other non-cash expenses and income -36 ,72 9 233 ,54 7
Decrease / increase of receivables and other current assets 303 , 5 07 -528,015
Increase / decrease of liabilities to vendors and other operating (non-financial) liabilities 173 , 37 1 -203,8 73
Interest received 8 9,1 5 8 4 ,94 2
Cash flow from operating activities 1 ,9 6 9, 2 6 1 1 , 4 5 9, 8 4 0
Receipts from the disposal of intangible and tangible fixed assets and right-of-use assets 3, 587 20, 239
Acquisition of intangible and tangible fixed assets and right-of-use assets 4.5/4.6/4.7 -4 3 1,9 4 4 -7 5 6 , 6 13
Acquisition / settlement of financial assets 4.2 8 ,1 5 7 -1 ,94 2
Cash flow from investing activities -420,200 -7 3 8 , 3 16
Repayment of lease liabilities -1 ,0 9 4 , 5 9 0 -1,007,066
Proceeds from other (non-lease) financial liabilities 17 ,794 -1 , 8 1 6
Interest paid -94,767 -1 31 ,1 8 5
Cash flow from financing activities -1, 171,563 -1 ,1 4 0, 0 67
Total cash flow effects on cash and cash equivalents 3 7 7, 4 9 8 -418,543
Effect of changes in exchange rates on cash and cash equivalents 175,505 -49 9, 6 0 0
Cash and cash equivalents at beginning of period 11, 275,6 46 12 ,1 93 , 7 89
Cash and cash equivalents at end of period 4.4 11,8 28, 649 11, 275,6 46
2023 Annual Report
13
Statement of Changes in Organizational Capital
Paid-in foundation
capital
Other reserves,
actuarial gains
and losses from
pension obligations
Retained surplus Organizational
capital
US$ US$ US$ US$
Balance as of December 31, 2021 55 ,92 7 28,428 12 ,9 94 , 45 4 13,07 8,809
Net surplus / (loss) 0 0 2 3 7, 4 5 3 2 3 7, 4 5 3
Other comprehensive income 0 -4,7 39 0 -4,7 39
Total comprehensive income 0 -4,7 39 2 3 7, 4 5 3 232 ,7 14
Balance as of December 31, 2022 55 ,92 7 23, 689 13,231,907 13,311, 523
Net surplus / (loss) 0 0 -278, 878 -278,878
Other comprehensive income 0 -2 5 , 8 1 4 0 -2 5 , 8 1 4
Total comprehensive income 0 -2 5 , 8 1 4 -278, 878 -30 4, 692
Balance as of December 31, 2023 5 5 ,927 -2 ,1 2 5 12 ,95 3 ,029 13,006,831
2023 Annual Report
14
2023 Annual Report
15
Notes to the Consolidated Financial Statements
1. Information on GLEIF
The accompanying consolidated financial statements present the operations of Global Legal
in Basel, Switzerland and its subsidiary (together referred to as the "GLEIF Group”).
GLEIF is a foundation according to Swiss civil law and registered under no. CHE-200.595.965 in
the commercial register of Basel-Stadt, Switzerland . The address of the Foundation is St. Alban-
establishment in Frankfurt am Main, Germany, where the main operating activities of the
Foundation are located.
The establishment of this system has been required by the Heads of State and Government of
the Group of Twenty, calling the Financial Stability Board to coordinate the work among the
regulatory bodies. Prior to the foundation of GLEIF, the Financial Stability Board established
the Regulatory Oversight Committee (“LEI ROC”), which had set forth requirements for the
structure of the Global LEI System and for the managing, monitoring, and standard-setting
functions, as well as the internal structure and the funding of GLEIF. The LEI ROC has, as
stipulated in Article 4 of the GLEIF Statutes, the regulatory oversight of the Global LEI System,
including the activities of GLEIF in the broad public interest.
GLEIF is under supervision of the Swiss Supervisory Board of Foundations since the
establishment of GLEIF in June 2014.
The consolidated financial statements were authorized for publication by the Board of
Directors on May 23, 2024.
2. 2 Basis of Presentation and Summary
of Material Accounting Policies
2.1 General
These consolidated financial statements have been prepared in accordance with IFRS
Accounting Standards as issued by the International Accounting Standards Board (IASB).
GLEIF also prepares a set of statutory financial statements in accordance with the Swiss
Code of Obligations.
These consolidated financial statements are presented in U.S. dollars (US$), with rounding
to the nearest dollar, unless otherwise stated.
The consolidated financial statements are prepared on the historical cost basis, unless
otherwise stated in the accounting policies.
The accounting policies set out below are unchanged from the prior period and have been
applied consistently throughout both periods.
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of GLEIF and its
subsidiary as at 31 December 2023. Control is achieved when the GLEIF Group is exposed, or
has rights, to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee. Specifically, the GLEIF Group controls
an investee if, and only if, the GLEIF Group has:
•
Power over the investee (i.e., existing rights that give it the current ability to direct the
relevant activities of the investee);
•
Exposure, or rights, to variable returns from its involvement with the investee;
•
The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support
this presumption and when the GLEIF Group has less than a majority of the voting or similar
rights of an investee, the GLEIF Group considers all relevant facts and circumstances in
assessing whether it has power over an investee, including:
2023 Annual Report
16
•
The contractual arrangement(s) with the other vote holders of the investee;
•
Rights arising from other contractual arrangements;
•
The Group’s voting rights and potential voting rights.
Based on corporate governance and any additional agreements, companies are analyzed for
their activities and variable returns, and the link between the variable returns and the extent to
which their relevant activities could be influenced.
The GLEIF Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control. Consolidation
of a subsidiary begins when the GLEIF Group obtains control over the subsidiary and ceases
when the GLEIF Group loses control of the subsidiary. Assets, liabilities, income and expenses of
a subsidiary acquired or disposed of during the year are included in the consolidated financial
statements from the date the GLEIF Group gains control until the date the GLEIF Group ceases
to control the subsidiary.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the GLEIF Group’s accounting policies. All intra-group assets and
liabilities, equity, income, expenses and cash flows relating to transactions between members of
the GLEIF Group are eliminated in full on consolidation.
If the GLEIF Group loses control over a subsidiary, it derecognizes the related assets (including
goodwill), liabilities, non-controlling interest and other components of equity, while any
resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at
fair value.
Scope of consolidation
As of December 31, 2023, the GLEIF Group consists of GLEIF and its subsidiary "GLEIF Americas,
a New Jersey nonprofit corporation" (hereinafter: "GLEIF Americas") with its registered seat
in Jersey City, New Jersey, United States of America. The subsidiary was incorporated on May
1, 2020 and is consolidated since then. Article 3.01 of the bylaws states that at each time the
majority of the board members must be affiliated with GLEIF. The members of initial board of
trustees are officers and employees of GLEIF. Board members are elected or re-elected by the
majority of the existing trustees.
2.3 Foreign currency
The functional currency of GLEIF is the U.S. dollar, as the Foundation generates its revenues
and receives almost all cash flows from the LEI issuers (also referred to as Local Operating Units
("LOUs")) in this currency. The functional currency of GLEIF Americas is the U.S. dollar as well.
Transactions that are denominated in a currency other than U.S. dollar are recorded at the spot
exchange rate on the date when the underlying transactions are initially recognized. At the
end of the reporting period, foreign currency-denominated monetary assets and liabilities are
retranslated into U.S. dollars, applying the spot exchange rate prevailing at that date. Gains
and losses arising from these foreign currency revaluations are recognized in financial income /
expense.
The exchange rates of the most significant foreign currencies are:
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Swiss Franc to U.S. dollar 1.1933 1.0832
Euro to U.S. dollar 1.1050 1.0666
2.4 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable net of
discounts and rebates and excluding taxes or duty. Revenue is recognized over the term of the
license period on an accrual basis.
The revenue of GLEIF is based on arrangements with the LEI issuers to pay to GLEIF a fixed
service fee for each LEI issued and served by the respective issuer.
The license period of a LEI is one year from the date of issuance or renewal. During this period,
the LEI issuers are responsible for managing and maintaining the integrity and accuracy of
the LEI entry data and of the associated changes. The services provided by GLEIF to the LEI
issuers relate to quality assurance, standardization, and certain other work with regard to the
LEI issuers’ management of LEIs. Accordingly, the revenue of GLEIF is related to the service
periods of the LEIs. On a straight-line basis, GLEIF recognizes the revenue over the terms of the
contracts between the LEI issuers and the LEI users, and defers the revenue that is allocated to
the portion of the LEI service periods remaining after the balance sheet date. The outstanding
portion of the LEI service periods is estimated based on quarterly performance reports of
each LEI issuer. If the arrangement with a LEI issuer is terminated, the LEI issuer is charged the
outstanding service fees until the respective end of the license periods of the managed LEIs.
Under the “master agreement” arrangement, the LEI issuer pays a quarterly service fee based
on all active LEIs under its management at the end of the quarter. For service fees under this
agreement, GLEIF only reflects in the balance sheet and as revenue 50 % of the quarterly
service fee for new / renewed LEIs during the quarter. The remaining 50 % that has neither
been earned nor billed at the end of the quarter is not shown in the balance sheet and only
recognized in the subsequent quarter.
2023 Annual Report
17
2.5 Government grants
A government grant or assistance is recognized only when there is reasonable assurance that
the relevant group entity will comply with any conditions attached to the grant and the grant
will be received. The grant is recognized as income over the period necessary to match with
the related costs, for which they are intended to compensate, on a systematic basis. A grant
receivable as compensation for costs already incurred or for immediate financial support, with
no future related costs, is recognized as income in the period in which it is receivable. A grant
relating to assets (capitalized expenditure) is recognized as deferred income (liability), and
released in accordance with the amortization of the related assets.
2.6 Interest
Interest income and expense are recognized using the effective interest method. The effective
interest rate is established on initial recognition of the financial asset or liability and is not
revised subsequently.
2.7 Income taxes
Since 2015, the Foundation’s activities are located in Basel, Switzerland and in Frankfurt am
Main, Germany. GLEIF is free from Swiss income taxes based on an assessment of the tax
authority Basel-Stadt, Switzerland. In Germany, the activities of GLEIF to manage and
monitor the Global LEI System are free from corporate and trade tax on income by law.
GLEIF Americas is exempt from federal income tax under Internal Revenue Code (IRC)
Section (c)(3).
2.8 Provisions
A provision is recognized in the balance sheet when a group entity has a present legal or
constructive obligation as a result of a past event, it is probable that an outflow of economic
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. If the effect is material, provisions are recognized at present value by
discounting the expected future cash flows at a rate that reflects current market assessments
of the time value of money. When a contract becomes onerous, the present obligation under
the contract is recognized as a provision and measured at the lower of the expected cost of
fulfilling the contract and the expected cost of terminating the contract as far as they exceed
the expected economic benefits of the contract. Additions to provisions and reversals are
generally recognized in the income statements.
Provisions for pension obligations are recognized by using the projected unit credit method
based on reasonable assumptions for the long-term expected rate of salary increases and
benefit increases, demographic assumptions, and long-term interest rates as of the balance
sheet date. The related plan assets are recognized at their fair value in accordance with IAS 19.
2.9 Lease commitments
At inception of a contract, the GLEIF Group assesses whether a contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
At commencement or on modification of a contract that contains a lease component, the GLEIF
Group allocates the consideration in the contract to each lease component on the basis of its
relative stand-alone prices. However, for the leases of IT equipment for the GLEIF data centers
the GLEIF Group has elected not to separate non-lease components and account for the lease
and non-lease components as a single lease component.
The GLEIF Group recognizes a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which comprises the
initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the GLEIF Group by the end of the lease term or the cost of the right-of-use
asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset
will be depreciated over the useful life of the underlying asset, which is determined on the same
basis as those of property and equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
liability.
The lease liability is initially measured at the present value of the lease payments that are
not paid at the commencement date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the GLEIF Group’s incremental borrowing rate.
Generally, the GLEIF Group uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an
index or rate, if there is a change in the GLEIF Group’s estimate of the amount expected to
be payable under a residual value guarantee, if the GLEIF Group changes its assessment of
whether it will exercise a purchase, extension or termination option or if there is a revised in-
substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount
of the right-of-use asset has been reduced to zero.
Short-term leases and low-value leases are recognized as expenses on a straight-line basis.
Lease arrangements with a residual lease term under 12 months on the date of initial
application are treated as short-term leases.
2023 Annual Report
18
2.10 Tangible fixed assets
GLEIF Group tangible fixed asset items are initially measured at cost. Cost includes
expenditures that are directly attributable to the acquisition of each item. Tangible fixed
assets are subsequently measured at cost less accumulated depreciation and any accumulated
impairment losses. Depreciation is charged to allocate the cost of assets less their residual
values over their estimated useful lives, using the straight-line method.
The estimated useful lives of all items of tangible fixed assets are as follows:
Technical and computer equipment 3 to 5 years
Motor vehicles 6 years
Office equipment 6 to 10 years
2.11 Intangible fixed assets
Separately acquired intangible fixed asset items are initially measured at cost. Cost includes
expenditures that are directly attributable to the acquisition of each item. After initial
measurement, intangible fixed assets are measured at cost less accumulated amortization
and any accumulated impairment losses. Amortization is charged on a straight-line basis
over the estimated useful lives of the intangible fixed assets.
The estimated useful lives of intangible fixed assets are as follows:
Software 3 to 5 years
As at the end of current financial year, GLEIF Group did not have intangible fixed assets with an
indefinite useful life.
2.12 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity. Financial assets of the GLEIF
Group mainly include cash and cash equivalents, long- and short-term security deposits, and
receivables from LEI issuers’ fees. Financial liabilities of the GLEIF Group mainly comprise
payables to vendors and to employees and Board Directors. GLEIF Group does not make use of
the option to designate financial assets or financial liabilities at fair value through profit or loss
at inception (Fair Value Option). Based on their nature, financial instruments are classified as
financial assets, and financial liabilities measured at cost or amortized cost, and financial assets
and financial liabilities measured at fair value.
Financial instruments are recognized on the balance sheet when a group entity becomes a
party to the contractual obligations of the instrument. Regular way purchases or sales of
financial assets, i.e., purchases or sales under a contract whose terms require delivery of the
asset within the time frame established generally by regulation or convention in the market
place concerned, are accounted for at the trade date.
Initially, financial instruments are recognized at their fair value. Transaction costs directly
attributable to the acquisition or issue of financial instruments are only included in determining
the carrying amount if the financial instruments are not measured at fair value through profit
or loss. Subsequently, financial assets and liabilities are measured according to the category
– cash and cash equivalents, loans and receivables, financial liabilities measured at amortized
cost – to which they are assigned.
Cash and cash equivalents
The GLEIF Group considers all highly liquid investments that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of change in value and have less
than three months maturity from the date of acquisition to be cash equivalents. Cash and cash
equivalents are measured at cost.
Loans and receivables
Financial assets classified as loans and receivables are measured at amortized cost using the
effective interest method less any impairment losses. Impairment losses on trade and other
receivables are recognized using separate allowance accounts.
Financial liabilities
The GLEIF Group measures financial liabilities at amortized cost using the effective
interest method.
2023 Annual Report
19
2.13 Accounting pronouncements applied in the
financial statements
GLEIF Group has applied all IFRS accounting pronouncements that are effective for this
reporting period. The GLEIF Group has not adopted any standards that have already been
issued but that are not yet effective for this reporting period. The amendments had no material
effect.
Amendments to
standards
Description
Mandatory
application
IFRS 17
Insurance Contracts, including
amendments to IFRS 17 and
amendments to IFRS 17 Insurance
Contracts: Initial Application of IFRS 17
and IFRS 9 – Comparative Information
Jan. 1, 2023
IAS 1
Amendments to IAS 1 Presentation of
Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting
Policies
Jan. 1, 2023
IAS 8
Amendments to IAS 8 Accounting
Policies, Changes in Accounting
Estimates and Errors: Definition of
Accounting Estimates
Jan. 1, 2023
IAS 12
Amendments to IAS 12 Income Taxes:
Deferred Tax related to Assets
and Liabilities arising from a Single
Transaction
Jan. 1, 2023
IAS 12
Amendments to IAS 12 Income Taxes:
Temporary relief from accounting for
deferred taxes arising from the OECD’s
international tax reform
Jan. 1, 2023
2.14 Not yet adopted recent accounting pronouncements
The following pronouncements issued by the IASB are not yet effective and have not yet been
adopted by the Foundation:
Pronouncement Description
Mandatory
application
Anticipated
effect
IAS 1
Amendments to IAS 1
Presentation of Financial
Statements: Classification
of Liabilities as Current
or Non-current, including
Deferral of Effective Date,
as well as Non-current
Liabilities with Covenants
Jan. 1, 2024
No material
effect
expected
IFRS 16
Amendments to IFRS 16
Leases: Lease Liability in a
Sale and Leaseback
Jan. 1, 2024
No material
effect
expected
IAS 7, IFRS 7
Amendments to IAS 7
Statements of Cash Flows,
IFRS 7 Financial Instruments
– Disclosures: ‘Supplier
Finance Arrangements’
Jan. 1, 2024
No material
effect
expected
IAS 21
Amendments to IAS 21
The Effects of Changes in
Foreign Exchange Rates:
Lack of Exchangeability
Jan. 1, 2025
No material
effect
expected
2023 Annual Report
20
2.15 Critical accounting estimates
The financial statements are prepared in accordance with IFRS as issued by the IASB.
The material accounting policies, as described above and in this section, are essential to
understanding the GLEIF Group’s results of operations, financial positions, and cash flows.
Some of these accounting policies require critical accounting estimates that involve complex
and subjective judgments and the use of assumptions. Some of these assumptions may be
for matters that are inherently uncertain and susceptible to change. Such critical accounting
estimates may have a material impact on the results of operations, financial positions, and cash
flows.
Revenue recognition on service contracts
The allocation of revenue relating to the Foundation’s service contracts with LEI issuers to
the appropriate accounting periods is based on reasonable estimates of the timing of the
underlying LEI service contracts between the LEI issuers and the LEI users. The Foundation
receives quarterly reports from the LEI issuers detailing the number of LEIs renewed or newly
issued by the LEI issuers. GLEIF has applied estimates, assuming that the issuance and renewal
of each LEI, as well as the related start of a standard one-year service period, are distributed
on a straight-line basis within the reported quarters. Changes in these estimates may lead to an
increase or decrease of revenue.
3. Statement of Comprehensive Income
3.1 Fee revenue
The revenues split in regions (based on the legal seat of the LEI issuers) as follows:
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Europe 12,921,327 12,090,166
Asia 1,206,216 1,047,770
North and South America 1,323,969 1,171,621
Other regions 75,412 73,263
Fee revenues 15,526,924 14,382,820
While a significant portion of the overall GLEIF fees are from LEI issuers with a legal seat in
Europe, the underlying cash flows of GLEIF are generated by a very geographically diverse
population of LEI registrants. Within Europe, 44.6% of the revenue is concentrated on four LEI
issuers.
3.2 Personnel expenses
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Wages and salaries 8,344,353 7,301,041
Social contributions and
expenses for pension and care
1,055,207 911,792
Personnel expenses 9,399,560 8,212,833
The personnel expenses consist of the fixed and accrued variable remuneration as well as
the bonus accrual for employees employed by the GLEIF Group. Social, pension, and care
contributions are also included as part of these expenses.
As of year-end 2023, GLEIF Group employed 62 (2022: 59) employees. The average headcount
for 2023 is 61 (2022: 57) employees.
2023 Annual Report
21
Pension plan
Under Swiss law, GLEIF has to arrange for an affiliation contract with a pension fund for the
Swiss employees to comply with legal requirements. The pension fund has to provide at least
occupational benefits according to law.
In 2015, GLEIF set up a pension plan in Switzerland with AXA Vorsorgestiftung as a collective
foundation. Based on the plan rules and pension law in Switzerland, the plan qualifies as a
defined benefit scheme under IFRS. The insurance plan is contribution-based and contains a
cash balance benefit formula. Under Swiss law, the pension fund guarantees the vested benefit
amount as confirmed annually to members.
The collective foundation of AXA guarantees a 40% coverage of the retirement accounts
covered by an insurance policy. The other assets are pooled for all affiliated companies. The
collective foundation can adjust risk and cost contributions according to the circumstances.
The employer has to cover at least half of all contributions. The collective foundation is able
to withdraw from the contract with the employer. In that case, the company needs to affiliate
with another pension institution.
GLEIF recognized pension cost of US$ 16,260 (2022: US$ 13,379) within personnel expenses
and net interest expenses of US$ 1,173 (2022: US$ 92), and paid employer and employee
contributions of US$ 15,743 (2022: US$ 9,957) to the scheme.
Actuarial losses of US$ 20,041 (2022: US$ 5,450 gains) from the defined benefit obligation, plus
US$ 5,773 losses (2022: US$ 10,189) from the return on plan assets have been recognized as other
comprehensive income.
The defined benefit obligation amounted to US$ 279,499 on December 31, 2023 (December 31,
2022: US$ 197,365), net of the plan assets of US$ 200,286 (December 31, 2022: US$ 152,355).
A net pension liability of US$ 79,213 (December 31, 2022: US$ 45,010) was recognized in the
balance sheet as of December 31, 2023.
The weighted average duration of the obligation is 16.0 (2022: 13.7) years. The employee and
employer contributions expected for the next fiscal year are US$ 17,316 each.
For the calculation of the defined benefit obligation, a discount rate of 1.50% (2022: 2.30%) and
a long-term salary increase rate of 2.0% (2022: 1.0%) is used. Mortality, risk of disability, and
turnover rates are set in accordance with the statistical database BVG 2020.
A sensitivity analysis was performed for the most important parameters that influence the
pension obligation of the employer. The discount rate and the assumption for salary increases
are modified by a certain percentage. Sensitivity on mortality is calculated by changing the
mortality with a constant factor for all age groups, resulting in a change of the longevity for
the ages by one year longer or shorter as the baseline value. The sensitivity analysis results
are as follows:
Investment of assets is carried out by the governing bodies of AXA Vorsorgestiftung or by
mandated parties. The structure of the plan assets by classes is as follows:
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Cash and cash equivalents 8,151 5,622
Equity instruments 63,631 43,954
Debt instruments 61,108 45,219
Real estate 45,686 38,546
Other 21,711 19,014
Total plan assets at fair value
(quoted market price)
200,287 152,355
Total plan assets at fair value
(non-quoted market price)
0 0
Plan assets 200,287 152,355
Dec. 31, 2023 Dec. 31, 2023
US$ US$
Defined benefit obligation
with a change of
Discounting rate by +0.25 % / -0.25 % 268,924 291,039
Interest rate by +0.25 % / -0.25 % 284,703 274,471
Future salary increases by -0.25 % / +0.25 % 277,492 281,468
Life expectancy -1 year / +1 year 277,107 281,886
Pension increase by +0.25 % / -0.25 % 284,098 275,150
2023 Annual Report
22
3.3 Other operating expenses
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Rental 152,665 159,079
Contractors 342,134 324,046
Travel and entertainment 788,902 469,569
IT consulting and development 278,378 195,368
IT service and maintenance 753,117 820,408
Website translation expenses 184,803 140,922
Telephone and communication,
office expenses
105,797 125,717
Consulting and advice 986,032 687,250
Public relation advice 523,933 483,293
Legal advice 247,094 254,236
Tax advice, accounting and audit 192,117 186,176
Advertising 128,721 94,802
Data acquisition 79,172 12,351
Staff training expenses 63,939 35,520
Insurance premiums 48,444 49,250
Disposal of fixed assets 3,090 13,819
Other 39,519 37,111
Other 4,917,857 4,088,917
3.4 Other operating income
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Release of prior year liabilities 178,700 81,659
Refunds and reimbursements 11,870 980
Other 7,816 20,694
Other operating income 198,386 103,333
3.5 Subsidies and donations
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Subsidy granted in 2016 1,217 5,031
Income from subsidies and
donations
1,217 5,031
In 2016, GLEIF received assistance from a government authority of the region of Hesse,
Germany (“Hessisches Ministerium für Wirtschaft, Verkehr und Landesentwicklung”). The
assistance was limited to a maximum of EUR 250,000. In order to receive the assistance, GLEIF
was required to incur certain qualifying expenditures. GLEIF complied fully with the terms of the
subsidy and in turn received the full amount of EUR 250,000 (US$ 260,725).
The portion of the subsidy attributable to capital expenditures (tangible and intangible fixed
assets), advance payments, and deferred expenses has been deferred and is amortized over the
useful life of the associated fixed assets.
GLEIF Group has not benefited from any other form of government assistance. No unfulfilled
conditions or other contingencies attached to government assistance have been recognized.
2023 Annual Report
23
3.6 Financial income / expense
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Interest income 89,412 4,942
Interest expense -95,940 -131,232
Currency translation gains 1,152,642 1,622,209
Currency translation losses -1,121,376 -1,855,399
Financial result 24,738 -359,480
The net currency translation gains result from payment of invoices in foreign currency
as well as the translation of monetary balances as at the end of 2023.
4. Balance Sheets
4.1 Receivables from LEI issuers’ fees
As in the prior year, all receivables from LEI issuers’ fees are due after the balance sheet date.
As of the balance sheet date, there are no indications that the receivables will not be settled
and thus, allowances are not considered material and therefore not recorded.
4.2 Current and non-current financial assets
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Receivables due from vendors 7,759 8,157
Other current financial assets 3,786 3,729
Current financial assets 11,545 11,886
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Deposit due later than one year
Office premises 141,440 136,525
Non-current financial assets 141,440 136,525
The balance outstanding as of December 31, 2023, relates mainly to a security deposit for the
lease contract that the Foundation entered into in 2015.
The outstanding deposits receivable analysis is as follows:
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Deposits receivable later than five
years
141,440 136,525
Total deposits receivable 141,440 136,525
2023 Annual Report
24
4.3 Other current assets
Dec. 31, 2023 Dec. 31, 2022
US$ US$
VAT refunds
Germany 20,494 76,302
Switzerland 35,479 16,804
Prepaid IT licenses and
maintenance
136,752 150,158
Prepaid data acquisition costs 133,333 0
Annual newsletter subscriptions 12,172 9,327
Prepaid insurances 22,580 25,087
Prepaid travel expenses 24,405 19,961
Prepaid public relation advice 1,727 2,258
Prepaid training costs 13,636 2,368
Other prepaid expenses 24,232 12,404
Receivables due from employees 16,053 9,367
Prepaid membership fees 13,156 167
Reimbursements due from social
organizations
2,254 6,403
Other 701 0
Other current assets 456,974 330,606
4.4 Cash and cash equivalents
The position consists of current bank accounts, call money and cash on hand.
Dec. 31, 2023 Dec. 31, 2022
US$ US$
UBS Switzerland AG 7,243,589 3,633,200
Sparkasse Langen-Seligenstadt 4,451,100 7,108,501
TD Bank, N.A. 133,664 533,903
Cash on hand 296 42
Cash and cash equivalents 11,828,649 11,275,646
2023 Annual Report
25
4.5 Intangible fixed assets
The carrying amounts of all intangible fixed assets are as follows:
GLEIS IT
Solutions
Other
intangible
assets
Prepay-
ments
Total
US$ US$ US$ US$
2022
Accumulated cost 2,995,719 276,056 187,788
3,459,563
Accumulated
depreciation
-1,494,294 -276,056 0
-1,770,350
Carrying amount
as of Dec. 31, 2022
1,501,425 0 187,788
1,689,213
Reconciliation
Carrying amount
as of Jan. 1, 2022
838,075 48,436 581,775
1,468,286
Additions 142,011 0 487,384
629,395
Transfer -
Accumulated cost
870,225 0 -870,225
0
Disposal -
Accumulated cost
0 0 -11,146
-11,146
Depreciation -348,886 -48,436 0
-397,322
Carrying amount
as of Dec. 31, 2022
1,501,425 0 187,788
1,689,213
GLEIS IT
Solutions
Other
intangible
assets
Prepay-
ments
Total
US$ US$ US$ US$
2023
Accumulated cost 3,010,152 281,903 167,564
3,459,619
Accumulated
depreciation
-1,688,543 -276,154 0
-1,964,697
Carrying amount
as of Dec. 31, 2023
1,321,609 5,749 167,564
1,494,922
Reconciliation
Carrying amount as
of Jan. 1, 2023
1,501,425 0 187,788
1,689,213
Additions 27,716 5,847 237,950
271,513
Transfer -
Accumulated cost
258,174 0 -258,174
0
Disposal -
Accumulated cost
-271,457 0 0
-271,457
Depreciation -465,706 -98 0
-465,804
Disposal -
Accumulated
depreciation
271,457 0 0
271,457
Carrying amount
as of Dec. 31, 2023
1,321,609 5,749 167,564
1,494,922
The GLEIS IT solutions contain specific developed software for the maintenance and quality
assurance of the GLEIS databases as well as data exchange tools for the communication
between GLEIF Group and the LEI issuers.
The other intangible assets contain standard software licenses and the ERP system.
All intangible fixed assets stem from external developments or purchases.
2023 Annual Report
26
4.6 Tangible fixed assets
The carrying amounts of all tangible fixed assets are as follows:
Technical and
computer
equipment
Office equipment Motor vehicles Prepayments Total
US$ US$ US$ US$ US$
2022
Accumulated cost 572,013 223,179 64,558 0
859,750
Accumulated depreciation -459,317 -193,339 -1,795 0
-654,451
Carrying amount as of Dec. 31, 2022 112,696 29,840 62,763 0
205,299
Reconciliation
Carrying amount as of Jan. 1, 2022 98,151 51,401 0 10,515
160,067
Additions 74,630 5,902 64,558 0
145,090
Transfer - Accumulated cost 10,515 0 0 -10,515
0
Disposal - Accumulated cost -56,585 -3,368 -70,466 0
-130,419
Depreciation -68,916 -26,474 -1,795 0
-97,185
Disposal - Accumulated depreciation 54,901 2,379 70,466 0
127,746
Carrying amount as of Dec. 31, 2022
112,696 29,840 62,763 0 205,299
2023
Accumulated cost 611,825 224,459 64,558 8,794
909,636
Accumulated depreciation -458,536 -214,014 -12,557 0
-685,107
Carrying amount as of Dec. 31, 2023 153,289 10,445 52,001 8,794
224,529
Reconciliation
Carrying amount as of Jan. 1, 2023 112,696 29,840 62,763 0
205,299
Additions 119,297 1,280 0 8,794
129,371
Transfer - Accumulated cost 0 0 0 0
0
Disposal - Accumulated cost -79,485 0 0 0
-79,485
Depreciation -75,614 -20,675 -10,762 0
-107,051
Disposal - Accumulated depreciation 76,395 0 0 0
76,395
Carrying amount as of Dec. 31, 2023 153,289 10,445 52,001 8,794
224,529
No asset is pledged as security for liabilities of the GLEIF Group. Nevertheless, in accordance with general purchase conditions in Germany,
most vendors will withhold the legal ownership of assets delivered until the purchase price is fully paid.
2023 Annual Report
27
4.7 Leases
Leases are accounted for as described in section 2.9. As a lessee, GLEIF Group has concluded
contracts for real estate and technical and computer equipment.
The carrying amounts of all right-of-use assets are as follows:
Land and
buildings
Technical and
computer
equipment
Total
US$ US$ US$
2022
Accumulated cost 4,166,237 2,251,421
6,417,658
Accumulated depreciation -1,350,897 -1,589,557
-2,940,454
Carrying amount as of Dec. 31, 2022 2,815,340 661,864
3,477,204
Reconciliation
Carrying amount as of Jan. 1, 2022 3,020,992 1,415,342
4,436,334
Additions 149,971 -11,107
138,864
Depreciation -355,623 -742,371
-1,097,994
Carrying amount as of Dec. 31, 2022 2,815,340 661,864
3,477,204
2023
Accumulated cost 4,419,015 2,031,982
6,450,997
Accumulated depreciation -1,738,449 -1,650,544
-3,388,993
Carrying amount as of Dec. 31, 2023 2,680,566 381,438
3,062,004
Reconciliation
Carrying amount as of Jan. 1, 2023 2,815,340 661,864
3,477,204
Additions 252,778 471,892
724,670
Disposal - Accumulated cost 0 -691,331
-691,331
Depreciation -387,552 -752,318
-1,139,870
Disposal - Accumulated depreciation 0 691,331
691,331
Carrying amount as of Dec. 31, 2023 2,680,566 381,438
3,062,004
In October 2019, GLEIF agreed to an adjustment of the rental contract with the lessor of the
Frankfurt office premises. The new minimum lease term runs until December 2025. An option
to extend the lease term until December 2030 was agreed upon. GLEIF considers it as highly
probable that this option will be used by GLEIF.
The outstanding discounted lease payments have the following maturities:
Dec. 31, 2022
US$
Dec. 31, 2022
US$
Land and buildings
Technical and
computer equipment
Maturities of discounted lease payments
Not later than one year 390,643 702,173
Later than one year and not later than
five years
1,473,044 0
Later than five years 1,016,548 0
Total lease payments 2,880,235 702,173
Dec. 31, 2023
US$
Dec. 31, 2023
US$
Land and buildings
Technical and
computer equipment
Maturities of discounted lease payments
Not later than one year 439,893 230,524
Later than one year and not later than
five years
1,658,820 249,452
Later than five years 772,191 0
Total lease payments 2,870,904 479,976
In addition, the following amounts were recognized in the statement of comprehensive income
in 2022 and 2023:
Jan. to Dec. 2022
US$
Jan. to Dec. 2022
US$
Land and buildings
Technical and
computer equipment
Impact on the Statement of
Comprehensive Income
Interest expense -69,279 -40,092
Expenses for variable lease payments -93,406 0
Total -162,685 -40,092
Jan. to Dec. 2023
US$
Jan. to Dec. 2023
US$
Land and buildings
Technical and
computer equipment
Impact on the Statement of
Comprehensive Income
Interest expense -65,864 -28,870
Expenses for variable lease payments -85,129 0
Total -150,993 -28,870
Cash outflows related to lessee activities in 2023 amounted
to US$ 1,272,502 (2022: US$ 1,271,589).
2023 Annual Report
28
4.8 Payables to vendors
The current payables to vendors, including accrued payables, are due or will become due within three months after the balance sheet date.
Normal payments terms agreed with the vendors range between 7 and 30 days after invoicing.
4.9 Deferred revenue
The deferred revenue is accrued in accordance with the outstanding portions of LEI service periods within the Global LEI System. See sec. 2.4 above.
2023 2022
US$ US$
Amortization in the following year
until March 31 165,782 0
until June 30 68,262 0
until September 30 10,629 0
until December 31 0 0
Total deferred revenue 244,673 0
4.10 Financial liabilities
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Leasing liabilities falling due later than one year and not later than five years 1,908,272 1,473,044
Leasing liabilities falling due later than five years 772,191 1,016,548
Long-term financial liabilities 2,680,463 2,489,592
Leasing liability portion falling due within one year after the balance sheet date 670,417 1,092,816
Short-term bank liabilities 21,246 6,223
Liabilities due to LEI issuers 5,464 25,089
Current financial liabilities 697,127 1,124,128
Total financial liabilities 3,377,590 3,613,720
The short-term bank liabilities reflect the balances on the GLEIF Group’s credit card accounts.
The liabilities due to LEI issuers arise from the annual true up of the volume of LEIs managed by the LEI issuers.
If the effective annual fee is lower than the amounts paid in advance, GLEIF issues a credit for such an overpayment.
Further details of lease liabilities are provided in section 4.7.
The reconciliation of the changes in liabilities arising from financing activities with the related cash flows is shown in the following table:
2023 Annual Report
29
4.11 Other payables
Dec. 31, 2023 Dec. 31, 2022
US$ US$
Wage and church tax payables 111,347 102,716
Social security liabilities 49,613 26,517
Outstanding vacation 203,938 179,407
VAT payable
Russia 0 0
Variable salary 772,797 660,823
Bonuses 761,389 714,888
Other liabilities due to employees 8,376 25,681
Other payables 1,907,460 1,710,032
The variable remuneration to GLEIF Group employees is accrued for in 2023 in accordance with
the employment contracts. The bonuses to employees are accrued in accordance with board
and management decisions.
The outstanding vacation liability in 2023 reflects the accrued salary and social contribution
payments for the respective time.
4.12 Organizational capital
The Foundation’s initial paid-in foundation capital in an amount of CHF 50,000 was contributed
by the Financial Stability Board, according to Article 7 of the GLEIF Statutes. With the consent
of the GLEIF Board of Directors, the Financial Stability Board is permitted, but not obliged, to
make additional contributions.
According to Article 10 of the GLEIF Statutes, any surplus generated by GLEIF is dedicated to
pursue the purposes of the Foundation. Any distribution payment to Directors, employees, or
third parties, other than those made with the consent of the GLEIF Board of Directors and in
accordance with the Foundation’s purpose, is not permitted.
The Foundation’s capital does not entitle the founder to receive distributions or any repayment
of the capital contributed.
According to the Statutes, GLEIF must operate on a not-for-profit basis. In order to ensure
the sustainable performance of the Foundation, the GLEIF Board of Directors and GLEIF
management believe that a reasonable level of total capital reserve is necessary.
The consolidated total comprehensive income generated in 2023 will be allocated to the GLEIF
Group’s reserves. Together with the retained surplus and other reserves, the consolidated total
organizational capital is US$ 13 ,00 6, 831 .
Jan. to Dec. 2023 Jan. to Dec. 2022
Leasing liabilities
Short-term
bank liabilities
Liabilities from
financing activities
Leasing liabilities
Short-term
bank liabilities
Liabilities from
financing activities
US$ US$ US$ US$ US$ US$
Carrying amount as of Jan. 1 3,582,408 6,223
3,588,631
4,746,588 7,812
4,754,400
Additions 724,670 0
724,670
129,723 0
129,723
Changes from financing cash flows -1,189,324 12,253
-1,177,071
-1,116,437 -1,816
-1,118,253
Interest accrued 94,734 0
94,734
109,371 0
109,371
Currency revaluation 138,392 2,771
141,163
-286,837 227
-286,610
Carrying amount as of Dec. 31 3,350,880 21,247
3,372,127
3,582,408 6,223
3,588,631
2023 Annual Report
30
5. Financial Instruments
5.1 Additional disclosures on financial instruments
The following table presents carrying amounts of each category of financial assets
and financial liabilities:
Dec. 31, 2023 Dec. 31, 2022
Carrying amount Carrying amount
US$ US$
Financial assets measured at cost
or amortized cost
Long-term security deposits 141,440 136,525
Receivables from LEI issuers fees 2,010,929 2,373,249
Cash and cash equivalents 11,828,649 11,275,646
Receivables due from vendors 7,759 8,157
Other non-derivative financial
assets
3,786 3,729
13,992,563 13,797,306
Financial liabilities measured at
cost or amortized cost
Payables due to vendors 599,830 802,608
Liabilities due to Board Directors 15,395 15,518
Leasing liabilities 3,350,880 3,582,408
Liabilities due to banks 21,247 6,223
Liabilities due to LEI issuers 5,464 25,089
3,992,816 4,431,846
All financial assets and liabilities are measured at cost or amortized cost.
The carrying amounts of cash and cash equivalents, LEI issuers’ fee and other receivables, and
vendor payables with a remaining term of up to twelve months, other current financial assets
and liabilities represent a reasonable approximation of their fair values, mainly due to the
short-term maturities of these instruments. With regard to the non-current financial liabilities
from leasing contracts, the fair value as of December 31, 2023 is considerably lower than the
carrying amount due to the overall changes in interest rates in 2023.
The realization and valuation of the financial assets and liabilities mentioned above generated
a net foreign currency gain of US$ 87,884 (2022: net foreign currency loss of US$ 238,847).
Total interest income / expense and bank transaction expenses from financial instruments are:
Jan. to Dec. 2023 Jan. to Dec. 2022
US$ US$
Total interest income 88,351 2,372
Total interest expense 94,734 131,140
Total bank transaction expenses 10,313 7,834
The bank transaction expenses are presented under the operating expenses.
2023 Annual Report
31
5.2 Financial risk management
The GLEIF Group’s operating business as well as its intended future investment and financing activities are affected by changes in
foreign exchange rates and interest rates. GLEIF Group identifies, analyzes, and manages the associated market risks in order to
optimize the allocation of the financial resources. The GLEIF Group seeks to manage and control these risks primarily through its
regular operating and financing activities.
Foreign currency exchange rate risk
The operating structure of GLEIF Group exposes the GLEIF Group to foreign currency exchange rate risks, particularly regarding
fluctuations between the U.S. dollar and the Swiss franc as well as the Euro, in the ordinary course of business. Based on an annual
budget and monthly interim statements, the GLEIF Group plans the future financial disbursements in each significant transaction
currency to mitigate the risk exposure to unpredicted and unwanted currency exchange expenses.
IFRS 7 requires the presentation of the effects of hypothetical changes of currency relations on surplus and equity using a
sensitivity analysis. The changes of currency prices are related to all financial instruments outstanding at the end of the reporting
period. To determine the net foreign currency risk, the financial instruments are categorized according to their foreign currency,
and a 10% increase or decrease is assumed for the transaction currency.
The following table shows the effect for the two main foreign transaction currencies.
2022 2022
Effect on equity Effect on surplus
US$ US$
10% Increase of transaction currency
Swiss Franc 23,267 23,267
Euro 369,877 369,877
393,144 393,144
10% Decrease of transaction currency
Swiss Franc -23,267 -23,267
Euro -369,877 -369,877
-393,144 -393,144
2023 2023
Effect on equity Effect on surplus
US$ US$
10% Increase of transaction currency
Swiss Franc 14,561 14,561
Euro 238,958 238,958
253,519 253,519
10% Decrease of transaction currency
Swiss Franc -14,561 -14,561
Euro -238,958 -238,958
-253,519 -253,519
Interest rate risk
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
changes in market interest rates. This risk arises whenever
interest terms of financial assets and liabilities are different.
Due to the increase of interest rates during the fiscal year
2023, and the higher spread between interest rates for assets
and liabilities, GLEIF Group’s interest rate risk remained at
a moderate level. Certain operating resources, particularly
office facilities, are financed through medium- to long-term
interest-bearing leasing contracts, so any future replacement
of such leases would incur additional interest costs. On the
other hand, GLEIF Group can generate significantly higher
interest income from cash funds in the future.
Liquidity risk
Liquidity risk results from the GLEIF Group’s potential
inability to meet its financial liabilities, in particular for
ongoing cash requirements from operating activities.
The GLEIF Group management is able to mitigate liquidity
risks due to the quarterly instalments and quarterly
invoicing agreed in both kinds of arrangements with the
LEI issuers and the repeating cash structure of the most
operating expenses.
Credit risk
Credit risk from fee receivables and other financial
receivables includes the risk that receivables will be
collected late or not at all. These risks are analyzed and
monitored by the management. The GLEIF Group mitigates
the default risks by assessing the financial strength of an
LEI issuer candidate during the accrediting and monitoring
processes. However, default risk cannot be excluded with
absolute certainty. The maximum default risk amount is
the carrying amount of the financial asset. No collateral or
insurance is agreed with regard to the default risk.
GLEIF Group has two major banking relationships. The
majority of its cash holdings is concentrated within one of
these banks.
2023 Annual Report
32
6. Other Information and Disclosures
6.1 Related party transactions
Related individuals of GLEIF Group include the members of the Foundation's Board
of Directors, the Chief Executive Officer and the senior management, as well as the
members of the Regulatory Oversight Committee. Related organizations include the
Financial Stability Board.
The following table discloses the current and prior year transactions with related parties
and payables due by December 31, 2023, and December 31, 2022:
Jan. to
Dec. 2023
Dec. 31,
2023
Jan. to
Dec. 2022
Dec. 31,
2022
Expenses Liabilities Expenses Liabilities
US$ US$ US$ US$
Board directors
Travel expense
reimbursement
163,359 15,395 95,411 15,518
Key management
personnel
Fixed remuneration 1,232,127 0 1,098,567 0
Variable remuneration
and bonus
359,612 370,241 386,677 393,455
Travel expense
reimbursement
72,766 6,177 64,926 2,980
1,827,864 391,813 1,645,581 411,953
The Directors did not receive remuneration for their services as Directors of the GLEIF
Board, with the exception of the reimbursement of their travel costs.
The 2023 and 2022 travel reimbursement expenses and liabilities for the Board Directors
include claimed expenses as well as accrued expenses for outstanding reimbursement.
The key management personnel of GLEIF consist of the CEO, the CFO, the Head of
Business Operations, the Head of Service Management, and the General Counsel.
The expenses for the pension scheme for Swiss employees in the favor of the senior
management were US$ 10,780 (2022: US$ 13,379)
6.2 Observance of the GLEIF Statutes’ requirements
The purpose of GLEIF is to act as the operational arm of a Global Legal Entity Identifier
System and thereby to support on a not-for-profit basis the implementation of a global
Legal Entity Identifier in the form of a reference code to identify uniquely legally distinct
entities that engage in financial transactions, as per Article 3 of the GLEIF Statutes. The
Board of Directors observed that all expenses and disbursements of GLEIF were made
to pursue the purpose of the Foundation, in accordance with Swiss law and the GLEIF
Statutes.
6.3 Auditor fees
US$ 37,319 audit fees related to professional services rendered by the Foundation’s
independent auditors, Ernst & Young Ltd, Basel, Switzerland, were accrued for fiscal
year 2023.
6.4 Subsequent events
GLEIF is not aware of any significant subsequent event after the balance sheet date that
would require disclosure.
2023 Annual Report
33
7. Board of Directors, Secretary, and Chief Executive Officer
The Foundation's Board of Directors consisted of the following individuals during the fiscal year 2023:
Steven A. Joachim
(Chair of the Board)
resigned in June 2023
T. Dessa Glasser
(Chair of the Board)
Sandra Boswell
resigned in June 2023
Hany Choueiri
Changmin Chun
Salil Jha
Zaiyue Xu
Amy A. Kabia
Javier Santamaría
Vivienne Artz
Kaoru Mochizuki
Jacques Demaël
Nassib Abou Khalil
resigned in June 2023
Gabriela Styf Sjoman
Katia Walsh
Angela Jimoh
nominated in July 2023
Luis Monteiro
nominated in July 2023
Omofolarin Alayande
nominated in July 2023
The first Directors were nominated in December 2013 by the Founder, the Financial Stability Board, and appointed at the inception of the Foundation on June 26, 2014, as per Article 14
of the GLEIF Statutes. Article 17 of the GLEIF Statutes stipulates that Directors are eligible for a term of three years, renewable (with consent of the Board of Directors) for an additional
term of three years.
The nomination procedure for new Members of the Board of Directors is coordinated by the Chairman of the Board. Irrespective of this procedure, the Founder has the right to remove
or nominate a Director of the Board based on a recommendation of the LEI ROC, as defined in Article 15 of the GLEIF Statutes.
The Chief Executive Officer is Stephan Wolf, residing in Wiesbaden, Germany. He started in his role in October 2014.
The Board of Directors appointed Nicola Dearden, Switzerland, as Corporate Secretary with effect from 26 June 2023.
Signing authorities have been established as per GLEIF Statute Article 35 “Signatures”.
Basel, May 23, 2024
Ernst & Young Ltd
Aeschengraben 27
P.O. Box
CH-4002 Basel
Phone: +41 58 286 86 86
www.ey.com/en_ch
To the Board of Directors of
Global Legal Entity Identifier Foundation, Basel
Basel, 23 May 2024
Report of the statutory auditor
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of Global Legal Entity Identifier
Foundation and its subsidiaries (the Group), which comprise the consolidated statement of
financial position as at 31 December 2023, the consolidated statement of income, the
consolidated statement of comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year th
en ended, and notes to the
consolidated financial statements, including material accounting policy information.
In our opinion, the consolidated financial statements (pages 10 to 33) give a true and fair
view of the consolidated financial position of the Group as at 31 December 2023 and of its
consolidated financial performance and its consolidated cash
flows for the year then ended in
accordance with IFRS Accounting Standards.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA). Our
responsibilities under those provisions and standards are further described in the “Auditor's
responsibilities for the audit of the consolidated financial statements” section of our report.
We are independent of the Group in accordance with the requirements of the Swiss audit
profession, as well as those of the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the
consolidated financial statements and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
2
materially inconsistent with the consolidated financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial
statements, which give a true and fair view in accordance with IFRS Accounting Standards,
and for such internal control as the Board of Directors determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern, and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and
are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-
report. This description forms an integral part of our report.
Ernst & Young Ltd
Licensed audit expert Licensed audit expert
(Auditor in charge)
2023 Annual Report
34
Independent
Auditor’s Report
2023 Annual Report
35
Advisor Country of Origin Type of Service
A&S Financial Advisory Firm Japan Payroll advice and processing
AD&M Abogados Y Consultores SLP Spain Payroll advice and processing
ADM in Swiss SARL Switzerland Payroll advice and processing
ADP Inc USA Payroll advice and processing
Arent Fox LLP USA Legal advice
AZB & PARTNERS India Legal advice
Bird & Bird LLP Germany Legal advice
Brix + Partners LLC USA Payroll advice and processing
CMS Hasche Sigle Germany Legal advice
CMS von Erlach Partners Ltd. Switzerland Legal advice
CMS von Hasche Sigle China China Legal advice
Ernst & Young AG Switzerland Audit
Estudio Chaloupka Argentina Legal advice
Eversheds Sutherland Ltd. Switzerland Legal advice
Hahn & Hahn Inc Republic of SA Legal advice
Hengeler Mueller Germany Legal advice
Joanknecht & Van Zelst Netherlands Payroll advice and processing
Joanknecht & Van Zelst Netherlands Legal advice
KIM & CHANG Korea Legal advice
MME Legal Ltd. Switzerland Legal advice
Niederer, Kraft & Frey AG Switzerland Legal advice
Okuyama & Sasajima Japan Legal advice
R. Arora & Associates India Legal advice
Rödl & Partner GmbH Rechts- Germany Legal advice
Rohner & Erni Tax AG Switzerland Tax advice
Tricor Payroll Services Pte Ltd Singapore Payroll advice and processing
Tricor WP Corporate Services Pte. Singapore Legal advice
White Horse Law Limited UK Legal advice
WP StB Christian Hecht Germany Payroll advice and processing
WP StB Christian Hecht Germany Tax advice
Overview of Professional Advisors
2023 Annual Report
36
Abbreviations
AML – Anti-Money Laundering
ANNA – Association of National Numbering Agencies
BIC – Business Identifier Code
BIS – Bank of International Settlements
CA – Certificate Authority
CHAPS – Clearing House Automated Payment System
CIPS – Chinese Cross-border Interbank Payment
System
CPMI
– Committee on Payments and Market
Infrastructure
CTF – Counter-Terrorist Financing
DSI – Digital Standards Initiative
EBA – European Banking Authority
EEA – European Economic Area
ERP – Enterprise Resource Planning
ESG – Environmental, Social, and Corporate
Governance
EUCLID – European Centralized Infrastructure for
Supervisory Data
EUDI – European Union Digital Identity
EWC – EU Digital Wallet Consortium
FATF – Financial Action Task Force
FPI – Foreign Portfolio Investors
FSB – Financial Stability Board
G20 – Group of 20
GBI – Global Business Identifier
GLEIF – Global Legal Entity Identifier Foundation
GLEIS – Global Legal Entity Identifier System
ICC – International Chamber of Commerce
ISIN – International Securities Identification Number
ISO – International Organization for Standardization
KYC – Know Your Customer/Know Your Client
LEI – Legal Entity Identifier
MAS – Monetary Authority of Singapore
MIC – Market Identifier Code
MiCA – Markets in Crypto-Assets
MSMEs – Micro, small and medium-sized enterprises
OWF – OpenWallet Foundation
PEP – Politically Exposed Person
RBI – Reserve Bank of India
ROC – Regulatory Oversight Committee
SEBI – Securities Exchange Board of India
SIMAH – Saudi Credit Bureau
S/MIME – Secure/Multipurpose Internet Mail Extensions
UNDP – United Nations Development Programme
VASP – Virtual Asset Service Provider
vLEI – Verifiable LEI
2023 Annual Report
37
Website:
https://www.gleif.org/en/
Email:
info@gleif.org
Blog:
https://www.gleif.org/en/newsroom/blog
Newsletter:
https://www.gleif.org/en/newsroom/gleif-
and-lei-news/subscribe-to-gleif-newsletter#
LinkedIn:
https://www.linkedin.com/company/global-
legal-entity-identifier-foundation-gleif-/
X:
https://twitter.com/GLEIF
YouTube:
https://www.youtube.com/channel/
UCP2xdWOFG7dWNaFIBKyejhg
WeChat:
https://bit.ly/46eOzL4
Contact Us
GLEIF Locations
Headquarters:
Global Legal Entity Identifier Foundation
(GLEIF)
St. Alban-Vorstadt 12
PO Box 4002
Basel
Switzerland
German office:
GLEIF Germany
Bleichstrasse 59
60313 Frankfurt am Main
Germany
US office:
GLEIF Americas
2500 Plaza 5
25th floor
Harborside Financial Center
Jersey City
New Jersey 07311
USA
Japan office:
GLEIF Japan
3F 1-1-3
Marunouchi
Chiyoda-ku
Tok yo
Japan
Singapore office:
GLEIF Singapore Branch
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
Acknowledgements
GLEIF thanks the following organizations for their
support with the GLEIF Annual Report 2023:
Partners
AMANA consulting GmbH
Veronikastraße 36
45131 Essen
Germany
XBRL International, Inc
Ste 103
100 Walnut Ave
Clark, NJ 07066
United States of America
LEI: 254900ARU0VC1WY6GJ71
iseepr
5, The Boulevard
Leeds Dock
Leeds
LS10 1PZ
United Kingdom
LEI: 213800L1Y3SPQ7155828
Raw Creative Ltd
Royal House
110 Station Parade
Harrogate
HG1 1EP
United Kingdom
37
2023 Annual Report
38
Terms and conditions
The GLEIF Website Terms
Graphics, layout and typesetting
Raw Creative Ltd.
Harrogate
United Kingdom
CGI
Staudt Medienproduktion
Kriftel
Germany
Images
www.shutterstock.com
Publishing Information
Published by Global Legal Entity
Identifier Foundation (GLEIF)
St. Alban-Vorstadt 12
PO Box 4002
Basel
Switzerland
Company number
CHE-200.595.965
LEI of GLEIF
506700GE1G29325QX363
LEI issuer
Swiss Federal Statistical Office (FSO)
Supervision
Swiss Federal Supervisory Authority for Foundations, Bern
External auditor
Ernst & Young Ltd (EY), Basel
© 2023 – GLEIF
gleif.org
Contact Us