Global Legal Entity Identifier Foundation

Annual Report 2021

2021 Annual Report

Chairman’s Statement

CEO’s Statement

The LEI in 2021

Regulatory Update

Strategic Priorities in 2021

Financial Statements

Notes to the Financial Statements 2021

Independent Auditor’s Report

Overview of Professional Advisors

Abbreviations

Contents

2021 Annual Report

Following a year disrupted by a global pandemic,

many challenges remained despite hopes that 2021

would bring a ‘new normal’. Individuals, businesses

and authorities worldwide continued to operate with

limitations, and against this backdrop I would like to

thank my colleagues at the Global Legal Entity Identifier

Foundation (GLEIF) for pushing forward regardless and

driving notable progress towards our collective vision:

one global identity for each business worldwide, which

includes a digital identity.

In addition to extending regulatory adoption in financial services,

the sector in which the Legal Entity Identifier (LEI) originated,

we created opportunities to boost LEI acceptance among

new audiences. By identifying and creating value for new LEI

registrants and users worldwide, we have been successful in

showcasing how the LEI enables smarter, less costly, and more

reliable business decisions. This is a key advantage during times

of economic, social, and political turmoil.

Continuing the Shift to

Voluntary Adoption

In 2021, efforts were invested in initiatives that will drive

voluntary mass adoption of the LEI. GLEIF continued to build

awareness and support for the Validation Agent model.

Launched in 2020, this model simplifies the LEI issuance process

and delivers efficiencies, driving voluntary LEI adoption across

a broader portfolio of non-regulatory use cases. Expansion of

the Validation Agent Framework this year has provided easier

access for a growing number of organizations to obtain a unique

organizational identifier.

Demonstrating our commitment to enabling trusted digital

identities for legal entities, GLEIF worked with stakeholders from

across the digital economy to develop a proposed governance

and issuance model for the verifiable LEI (vLEI), a secure digital

attestation of a conventional LEI. By pioneering this new form of

digitized organizational identity, GLEIF is meeting the global need

for automated authentication and verification of legal entities

across a range of industries. We are excited to see this evolve

further in 2022.

We worked to expand opportunities for bulk registration and

announced new partnerships to support these efforts. Contour,

a digital trade platform, deployed the LEI as an onboarding

requirement for platform participants, enabling trading parties

to benefit from improved data integrity and reliability, while

generally creating a more transparent trading environment. This

partnership is a showcase for how the LEI can play a critical role

in establishing trusted counterparty identification, regardless of

use case.

Similarly, a collaboration between GLEIF and certification

authorities (CAs) and trust service providers (TSPs) – in the form

of a new GLEIF CA Stakeholder Group – advanced the use of

LEIs within digital certificates and will continue to encourage

a global approach to LEI usage across digital identity products.

We officially welcomed the first commercial demonstration of

LEIs embedded within digital certificates, by China Financial

Certification Authority (CFCA).

Each of these efforts reflects a significant achievement in the

face of complex challenges posed by the pandemic and emerging

geopolitical risks. We expect the strategic investment of time and

effort into these initiatives to pay significant dividends in 2023

and beyond. The strong support they have already received from

private and public sector audiences globally suggest that their

value will increase exponentially. Certainly, 2022 will be a pivotal

year for GLEIF as we continue to build strong foundations in all

of these areas, assess success metrics, and adjust our investment

strategy to optimize our potential returns.

Strengthening GLEIF’s

Regulatory Roots

Our efforts to expand voluntary LEI adoption complemented

our traditional focus of supporting and driving regulatory

requirements and legal mandates across the financial services

ecosystem globally. We continued to invest heavily in operating

and enhancing our work in this area and are extremely

pleased to report growing interest in LEI use cases by U.S.

governmental agencies. Europe too continued to expand and

consolidate the incorporation of the LEI into its financial services

infrastructure, while the growth in LEI interest across Asia has

been phenomenal. At the start of 2021 there was very low LEI

penetration in the region yet momentum has been building.

Both China and India have become major growth engines for LEI

volumes and there is increasing interest in the LEI from Japan.

In partnership with the Regulatory Oversight Committee (ROC),

we laid a foundation to expand our coverage of investment funds

and governmental entities during 2022. And, finally, we began

the process of restructuring our board to align with current

organizational requirements. The goal is to strengthen our board

with experts in technology strategy and key vertical markets.

As such, we have elected new board members with experience in

the airline, telecom, energy, and technology sectors and who are

experts in data management, technology, risk management, and

legal affairs. A board with a broad knowledge and expertise base

will be of benefit to GLEIF staff and the Global LEI System (GLEIS).

Looking Ahead

I am excited to greet the opportunities that 2022 will bring

and feel confident that under its current leadership, GLEIF is

in a strong position to navigate unforeseen challenges. At the

time of publication, emerging geopolitical risks have caused

major disruptions to global commerce. Yet opportunities lie

in the emerging acceptance of COVID-19 as endemic. This

tension between disruption and opportunity highlights the need

for tools and processes that enable efficient and frictionless

global commerce to grow. As a result, the case for the LEI and

its offspring, the vLEI, is becoming clearer to all, and we are

confident this will result in accelerated adoption and growth. 

While we may indeed sustain challenges in our operational

environment in 2022, we are committed to taking further steps

to make the LEI ubiquitous, as a valuable legal entity identity

structure for the public and private sectors.

Chairman’s Statement

Steven Joachim

Chair of the Board of Directors,

Global Legal Entity Identifier

Foundation (GLEIF)

2021 Annual Report

Stephan Wolf

Chief Executive Officer,

Global Legal Entity Identifier

Foundation (GLEIF)

CEO’s Statement

Despite the pandemic continuing throughout 2021,

GLEIF ended the year on a high, thanks to multiple

successes and milestones marked on both a strategic

and operational level.

The GLEIS: Scaling for Growth

The expansion and enhancement of the GLEIS continued

throughout the year. Annual LEI issuance rose by 15.3%,

bringing the total number of active LEIs globally to 1.95

million. In support of extended LEI issuance services, GLEIF

accredited three new LEI issuers across different geographical

markets: Keler (Hungary), NordLEI (the Nordics) and Tunisie

Clearing (Tunisia).

Furthermore, following the launch of the Validation Agent

program in 2020, GLEIF welcomed partnerships across the

world with China Financial Certification Authority (CFCA);

FinClusive; JP Morgan; NMB Bank Limited; and UBO Service.

The engagement in this initiative by globally representative

stakeholders from the CA and fintech spaces, as well as

banks, is very important as it signals recognition of the LEI’s

value within industries that are not bound by regulatory

obligations to use it. This advances us further along our

strategic path of encouraging voluntary LEI adoption and will

hopefully act as a catalyst for other similar organizations to

become Validation Agents in the future.

Laying Foundations for Mass

LEI Deployment

In its quest to drive voluntary adoption of the LEI, GLEIF

continued to work hard to identify and expand its value in

specific use cases, to drive advocacy and deployment by new

audiences. GLEIF was successful in advancing LEI engagement

with new audiences in many ways:

• Digital certificates: Having recognized the benefit that

the LEI can bring to the digital certificate ecosystem,

GLEIF pursued active collaboration with the global CA and

TSP community in 2021 to accelerate the integration of

the LEI within digital certificates. This pursuit resulted in

GLEIF partnering with three CAs, who are now actively

embedding LEIs in digital certificates.

• vLEI operational model: GLEIF developed the vLEI

Ecosystem Governance Framework (EGF) in 2021 in full

accordance with the standards and recommendations of

the Trust over IP Foundation (ToIP) after the infrastructure

model was shared at the end of 2020. The vLEI EGF, which

has been designed from the ground up to complement

GLEIF’s existing LEI governance, defines the vLEI

operational model and describes how the new ecosystem’s

range of vLEI issuing stakeholders will qualify for and

perform their roles in the GLEIS.

• New digital identity management use cases: GLEIF

invested heavily behind the scenes in driving the

development of a soon-to-be published ISO standard – ISO

5009 – which will enable new digital identity management

use cases. This standard will support uniform inclusion of

‘Official Organizational Roles’ in LEI-based digital tools.

This will extend their utility and value as universally

trusted methods of digitally confirming the authenticity of

people authorized to act on behalf of an organization.

• Global business identity initiative, promoting financial

inclusion: In 2021, GLEIF collaborated on an important

initiative with many partners, including the German

Federal Government through the Deutsche Gesellschaft

für Internationale Zusammenarbeit (GIZ) GmbH. The goal

was to promote the Validation Agent Framework as a

means to equip small and medium enterprises (SMEs) in

developing economies with an LEI, to address financial

inclusion challenges and boost their potential for inclusion

in global supply chains. The initiative was such a success

it gained the attention of international business media

channels. Continuing to build this access to LEIs for SMEs in

developing economies remains a priority for GLEIF in 2022.

• Regulatory momentum building: Throughout the year,

GLEIF has been encouraged to see an increasing number

of regulatory authorities and organizations across the

globe – outside of GLEIF’s traditional niche financial

services audiences – considering the LEI as a critical

component to enhance transparency and trust within

ecosystems. Throughout the past year alone, regional

regulators in China and India have committed to drive

country-wide LEI issuance through various policies and

mandates. We have seen regulatory authorities pushing

the LEI to be used increasingly in payments use cases,

the European Commission championing its value in Anti-

Money Laundering (AML) and Countering the Financing

of Terrorism (CFT) policy, and supervisors recognizing the

LEI’s benefits in non-financial reporting. It seems word is

certainly getting out and with growing support for further

LEI regulation and adoption across new and emerging

applications, GLEIF welcomes this burgeoning recognition

of the potential value that ‘one global identity’ can deliver

for businesses, regardless of sector, worldwide.

GLEIF: Organizational

Best Practice

In 2021, GLEIF successfully recertified and transitioned to

the new version of ISO 20000. This is an international ISO

standard for service management for IT and non-IT services

and our compliance demonstrates GLEIF’s ongoing reliability

and quality of services to all stakeholders.

Elsewhere, our focus has been on developing operational

excellence through investment in our people. As a global

organization it is critical for GLEIF to build an internationally

diverse team. The resulting blend of skills, knowledge and

perspective allows us to optimally support our partner

network and realize GLEIF’s mission: to manage a network

of global partners to provide trusted services and open,

reliable data for unique legal entity identification worldwide.

Diversity also underpins some fundamental GLEIF values –

namely the organization’s operational excellence when it

comes to performance and its commitment to open, global

participation within the GLEIS. We were proud to end 2021

with a team of roughly 60 staff representing over 20 different

countries. We also boosted our on-the-ground presence last

year with the expansion of our global office network from

five to seven. GLEIF opened new offices in Madrid, Spain and

Tokyo, Japan, expanding our geographical footprint, creating

more opportunity for us to recruit diverse staff and bringing

GLEIF team members closer to its partners.

2021 Annual Report

The LEI in 2021

Europe

1,342,487

Americas

370,427

Africa

8,735

Asia

202,942

Oceania

29,845

Active LEIs by Region:

LEI issuance increased, resulting

in significant growth globally.

15.3%

annual increase

in active LEIs

250

jurisdictions

with LEI services

261,000

total LEIs issued

in 2021

1.95

million

active LEIs globally

As of 2021, Dec, 31

2021 Annual Report

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2021 Annual Report

Regulatory Update

In 2021, GLEIF provided responses for...

Growing Regulatory Momentum for ‘One

Global Identity for Business’

The origin of the LEI is firmly rooted in financial services and

regulation. While its future undeniably points to universal

applicability across public and private sectors for organizations

large and small, its widening acceptance and advocacy are fueled

by its early and continuing successes in regulated use cases.

At the end of 2021, there were 122 regulations globally mandating

LEI usage across financial services reporting, supervision and

identification use cases worldwide. GLEIF actively participates

in relevant public consultations published by regulators and

organizations to highlight the added value of the LEI. In 2021, GLEIF

responded to 62 public consultations across five jurisdictions.

GLEIF prioritizes this activity to: raise awareness of the LEI

among regulators worldwide; highlight the benefits of using an

established, freely accessible, and globally recognized standard;

and illustrate specific opportunities that exist when the LEI is

harnessed as a required component of an identity management

ecosystem.

public consultations published

by regulatory authorities

and organizations

which were

published in

different

jurisdictions

covered

Consultation Focus

Digital

finance,

blockchain,

crypto-assets,

open finance,

digital ID

Trade and

transaction,

supervisory

reporting

AML, CFT,

de-risking

Payments,

VAT related data,

customs

VAT

Non-financial

reporting, climate

change mitigation

2021 Annual Report

Strategic Priorities in 2021

Introduction

Notable advances were made by GLEIF throughout

2021 towards the organization’s vision of one global

identity, which can be used digitally, for every business

worldwide. GLEIF further strengthened the LEI issuance

ecosystem, while continuing to consolidate the LEI’s

value in the world of digital entity identity management,

particularly in relation to verifiable credentials and

digital certificates. The drive towards global issuance

and adoption of the LEI beyond regulatory mandates

also continued at pace. As a result, the LEI featured in

some high-profile deployments across multiple public

and private sector use cases.

A Strengthened GLEIS

A strong, credible, and globally expansive LEI issuance ecosystem

– overseen by international regulators – is necessary for GLEIF

to progress its vision. The GLEIS provides that infrastructure,

allowing unique identifiers to be issued to legal entities across

the globe.

In 2021, GLEIF was successful in strengthening the GLEIS and

demonstrating best operational practice in a number of ways.

• Enhanced Data Governance: New Data

Quality Management Reporting

GLEIF successfully launched its Data Governance Pre-Check

Application Programming Interface (API) in 2021. This

enables LEI issuers to assess data quality prior to publishing

it on the Global LEI Index. The API delivers the results of the

check in a pass/fail format, along with the reasons for failure

if applicable. The new requirement, since August 2021, for

LEI issuers to pre-check the quality of new and updated data

records before upload, together with GLEIF’s introduction

of an additional 18 data quality checks in the same month,

had a measurably positive impact. This was reflected in the

reformatted monthly data quality reports.

After an initial drop in the Data Quality Score (to the daily

average of 99.71 out of 100), which resulted from LEI issuers

updating LEI records to meet the new standards, the score

rose and stabilized at 99.97 by the end of the year.

The number of LEI issuers achieving Expected and Excellent

Quality scores in the monthly data quality reports also

significantly improved throughout 2021.

By the end of the year, the data quality management

information on the GLEIF website was fully updated to reflect

these developments. GLEIF also developed and published

an interactive monitoring dashboard to support LEI issuing

organizations in the daily tasks of data management.

The progress made on data quality initiatives in 2021

– and the resulting increase in data quality standards

within the GLEIS – was a result of GLEIF’s continual

improvement program to manage and enhance its data

quality processes. GLEIF is committed to ensuring the

highest quality of LEI data for LEI users to maintain the

trust of market participants in the GLEIS.

What is the GLEIS?

The Global LEI System (GLEIS) is the infrastructure

that enables LEIs to be issued to legal entities

globally. The GLEIS operates in three-tiers:

• The 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.

2021 Annual Report

of women in

managerial roles

• Recertification and Transition

to ISO/IEC 20000-1:2018

GLEIF demonstrated ongoing reliability and quality of services

to employees, stakeholders, and customers in 2021 through

its commitment to maintaining compliance with ISO 20000.

This is an international standard for service management for

IT and non-IT services published by ISO.

In 2019 GLEIF obtained an ISO/IEC 20000-1:2011 certificate,

proving that it had met the standards required for planning,

establishing, implementing, operating, monitoring, reviewing,

maintaining, and improving a Service Management System

(SMS). The GLEIF SMS plays a critical role in ensuring GLEIF’s

services remain relevant, up to date, effective and operate in

line with best practices.

In July 2021, GLEIF accomplished its latest compliance

milestone by successfully completing the recertification

process and transitioning to the new version of the ISO

standard, ISO/IEC 20000-1:2018. This achievement enables

better integration of the GLEIF SMS with other integrated

management systems, thanks to a common new High-Level

Structure. It also demonstrates GLEIF’s ongoing commitment

to systemic risk analysis to ensure the effectiveness and

resilience of its service delivery alongside its sharp focus on

continual quality improvement.

• Diversity, Talent Management

and Sustainability Progress

On the human side, GLEIF has continued to strengthen the

GLEIS by ensuring that those responsible for its development,

maintenance and operation are globally representative.

This ensures that the broadest range of perspectives,

approaches, and requirements are continually considered at

a strategic and operational level.

To serve this purpose, GLEIF is committed to building a

diverse leadership team and workforce, and encouraging a

Strategic Priorities in 2021

corporate culture that welcomes heterogeneity, inclusion,

and a holistic approach to talent management.

At the end of 2021, GLEIF’s credibility as a truly diverse

and international entity was well established, thanks to

its employment of roughly 60 staff members from over 20

nations (including staff members with dual citizenship).

While 45% of the workforce was female, women filled 75% of

managerial roles.

As a foundation under Swiss law, GLEIF’s headquarters are

in Basel, Switzerland. Yet it is committed to strong ‘on the

ground’ representation in key regions globally, through its

network of international offices. GLEIF’s largest office is

in Frankfurt, Germany and, as such, approximately 36%

of all employees are German citizens. Permanent offices

also exist in Geneva, Switzerland; Bunnik/Province Utrecht,

The Netherlands; Madrid, Spain; Tokyo, Japan; and

Jersey City/New Jersey, USA.

At an employee level, GLEIF prioritizes professional

progression in a way that takes the needs of the individual

into account. To support this principle, GLEIF deployed a new

HR tool called ‘Evalea’ in 2021. All staff use the platform for

ongoing skills development, individual training requests,

e-learning modules, yearly appraisals, and 360° feedback.  

In particular, the 360° platform lays the foundation for

meaningful and lasting behavior change by providing GLEIF

employees with honest and constructive insight into their

strengths and potential opportunities for development. The

platform fosters a culture of open dialogue and respect by

allowing colleagues to provide written feedback to peers,

direct reports, and managers.

In addition to prioritizing a diverse and progressive

workplace, GLEIF made changes to its technical infrastructure

in 2021 to minimize the organization’s environmental impact.

GLEIF uses data hosting service providers who use climate-

neutral data centers, ensuring that renewable energy sources

cover 100% of electricity needs.

Frankfurt

Madrid

Geneva

Tokyo

Jersey City

New Jersey

Bunnik

Province Utrecht

Germany

Basel

GLEIF Headquarters

Switzerland

Spain

Switzerland

Japan USA

The Netherlands

Seven offices across the globe

20+

75%

nations represented

across 3 continents

2021 Annual Report

Strategic Priorities in 2021

Enabling Universal Digital

Identity Management

Throughout 2021, GLEIF worked diligently to advance initiatives

that champion the LEI’s role in enhancing trust in, and adding

value to, the digital identity management systems that power the

public and private sectors worldwide. GLEIF recognized that in a

globalized digital economy, the process of verifying the identity

of customers, partners, and suppliers is business critical, yet it

can be complex and costly especially across international borders.

Since the LEI is the only open and standardized system, overseen

by global regulators, that is capable of establishing digitized trust

between all legal entities everywhere, GLEIF has strongly advocated

for digital identity management tools to be strengthened with

embedded LEIs. GLEIF’s particular focus in the past twelve

months has been on digital certificates and verifiable credentials.

Advanced Trust and Transparency in

Digital Certificates

To accelerate the integration of LEIs in digital certificates, GLEIF

launched a new Certification Authority (CA) Stakeholder Group

in March 2021. CAs and TSPs from across the globe were invited

to collaborate with GLEIF on the development and promotion of

best practice guidelines and use cases for LEI integration across

the digital identity industry. There was strong engagement in the

group from the outset and at the end of 2021 it had support and

participation from China Financial Certification Authority (CFCA),

DigiCert, Entrust Datacard, Guang Dong Certificate Authority

(GDCA), ICAI India, InfoCert, and SwissSign.

The use of the LEI in digital certificates delivers significant

identity management benefits in a digital environment.

Digital certificates with embedded LEIs can be linked to verified

and regularly updated entity reference data online. This

makes certificates easier to manage, aggregate and maintain

and provides greater transparency across the digital identity

management ecosystem.

In April 2021, soon after the launch of the CA Stakeholder Group,

one of the members of the group – CFCA – showcased the first

commercial demonstration of LEIs embedded within digital

certificates. CFCA also became a Validation Agent in the GLEIS

and the inaugural CA to sign up for the Validation Agent role.

CFCA’s advances in 2021 are significant as they reflect the earliest

reported successes aligned to GLEIF’s CA Stakeholder Group

initiative. GLEIF considers them to be an important first step

towards achieving a critical mass of LEIs embedded within digital

certificates. The success of CFCA paves the way for more CAs to

do the same in the coming year and beyond.

Verifiable Credentials: Progress Towards

Instant and Automated ID Verification

A notable achievement in 2021 was GLEIF’s unveiling of

its proposed governance and infrastructure models for the

vLEI system. This followed an earlier announcement of plans

to extend the GLEIS to create a fully digitized LEI service

capable of enabling decentralized and automated identity

verification between counterparties operating across all

industry sectors, globally.

The governance model establishes GLEIF as the digital ‘root

of trust’ and enables GLEIF to safeguard the integrity of the

trust chain. Certain vLEI credentials issued to legal entities

and persons who represent their organizations officially must

be issued by a GLEIF-qualified vLEI issuer to a legal entity

client that has an LEI. Once obtained, the vLEI can be used

as a basis to issue additional credentials to members of the

organization. The vLEI issuance, revocation, verification, and key

management processes have been designed in full accordance

with standards of the Linux Foundation-based ToIP, of which

GLEIF is a contributing member.

GLEIF also confirmed that to fulfil its global potential, the

vLEI system will interoperate seamlessly and securely with

all technology models, e.g. blockchain and distributed ledger

consortia, by adopting a ‘network of networks’ approach.

To accomplish this, GLEIF has leveraged the Key Event Receipt

Infrastructure (KERI) protocol to develop the vLEI’s technical

underpinnings in an open source environment.

To recap, GLEIF’s intention for the vLEI is to give government

organizations, companies, and other legal entities worldwide

the capacity to use non-repudiable identification data pertaining

to their legal status, ownership structure and authorized

representatives in a growing number of digital business activities.

These include approving business transactions and contracts,

onboarding customers, transacting within import/export and

supply chain business networks, and submitting regulatory

filings and reports.

The development model for the vLEI was widely welcomed

by industry leaders. Throughout the year, GLEIF engaged in

partnerships and trials with software developers as well as

stakeholders in supply chain, trade, trade finance, telecom,

national identity, industry solutions, and the financial services

sector, with a view to exploring opportunities to leverage vLEI

identity verification in future applications, services and business

models. Significant progress was made on this initiative and

exciting developments – both in terms of the infrastructure

development and broad industry engagement – are expected

to follow as this initiative gains increased momentum in 2022.

Strategic Priorities in 2021

Supporting LEI Adoption

in Public and Private

Sector Initiatives  

GLEIF celebrated a number of important partnerships and

LEI deployments in 2021, which collectively show the rapidly

expanding acceptance and advocacy for the LEI across the public

and private sectors, geographies, and use cases.

Strengthening Financial

Inclusion with the LEI

In August 2021, GLEIF was involved in the launch of a widely

reported global business identity initiative, to boost financial

inclusion in developing economies. The initial focus was on

the African continent.

As a Validation Agent,

NMB Bank is now able to offer a

new service to our SME clients

which allows them to save

significant time when partaking

in international transactions

and opens opportunities to access

trade finance. Addressing these

key pain points will help us

deliver an attractive proposition

to SME customers.

A robust global enterprise identity

opens up an under-represented

large base of SMEs and women-

owned businesses to trade across

Africa as well as across global

markets. Cenfri looks forward to

the deepening of LEI usage across

Africa and the inclusion of SME

and women-owned enterprises in

the global economy.

Munyaradzi Kamhozo,

Account Relationship

Manager

Barry Cooper,

Technical Director

We face trade financing challenges

not only because we are a small

company, but because we are unknown

from Zimbabwe. We often receive

unfavourable repayment terms which

result in indirect exclusion. The LEI will

give us greater credibility when we apply

for finance, engage in international

trade, and establish new supplier

relationships for our

manufacturing process.

Second Muguyo,

Finance and Admin

Manager

A Zimbabwean copper and

silver giftware manufacturer

Many small and medium sized enterprises (SMEs) in developing

countries often lack the business credentials needed to access

adequate trade finance, form partnerships, and participate in the

global digital economy. To address this, GLEIF initiated a flagship

project to streamline the LEI issuance process and equip SME

customers, especially on the African continent, with globally

verifiable business identities. NMB Bank Limited of Zimbabwe

became the first African bank to achieve the designation of

Validation Agent. Other partners involved were: LSEG (London

Stock Exchange Group), Cenfri, Cornerstone Advisory, and the

German Federal Government through the Deutsche Gesellschaft

für Internationale Zusammenarbeit (GIZ) GmbH.

It remains a priority for GLEIF in the year ahead to promote the

valuable role Validation Agents and the LEI can play in expanding

SME access to trade finance, broadening SME participation in

domestic and international markets, and ultimately increasing

the flow of inbound capital to developing economies.

2021 Annual Report

can also be easily accessed by, and integrated with, other

sustainability initiatives, to enhance data modeling, mapping,

and calculations. The recruitment of LEI datasets into ASDI

therefore has the potential to act as a catalyst for innovative

LEI use in sustainability initiatives of the future, including

transparent ESG reporting and data exchanges.

Facilitating Global Trade

A number of developments in 2021 helped to expand recognition

of the LEI’s value in supporting global trade networks.

In August, GLEIF joined the Industry Advisory Board for the

International Chamber of Commerce. The Industry Advisory

Board works under the auspices of the Digital Standards Initiative

(DSI) Governance Board and is comprised of 30 industry leaders

and strategic organizations, such as GS1, WCO, IPCSA, SWIFT,

BIMCO, FIATA, DCSA, freight and logistics, banks, retailers, and

commodity companies. The group is tasked with supporting the

DSI’s growing mandate, which includes solving key challenges

facing international trade digitization efforts and establishing a

global harmonized and digitalized trade environment.

In a separate but complementary development, a partnership

was announced in October between GLEIF and Contour, the

digital trade finance network. This partnership enables Contour

to use the LEI within its own network and to financially support

its members in obtaining their own LEI.

Contour recognized that LEI adoption benefits its members by

increasing confidence amongst their trading counterparties,

lowering data reconciliation costs, reducing transaction

discrepancies, and improving risk management. The integration

of the LEI into Contour’s digital network also allows trading

parties to benefit from improved data integrity and reliability,

creating a more transparent trading environment.

Contour has committed to deepen its use of the LEI and to

integrate it when working with its partners on new APIs, build it

into its Know-Your-Customer processes, and to collaborate with

GLEIF on the vLEI initiative.

Strategic Priorities in 2021

Enabling Sustainable Finance with LEI Data

In November 2021, GLEIF partnered with OS-Climate and

Amazon to demonstrate how LEI data can play a critical role

in helping businesses assess the climate change-related risks

of their investments. The lack of standardization for entity

identification typically makes it difficult to find, compare, and

consume Environmental, Social and Governance (ESG) data

globally – leading to a lack of transparency and inefficiencies.

The three-way partnership resulted in LEI datasets being

recruited into Amazon’s Sustainability Data Initiative (ASDI)

open-data catalog. While the goal of this particular collaboration

was to drive broader and faster development of climate-aligned

financial applications, the new availability of LEI data within ASDI

has the potential to deliver a much wider-reaching impact on the

global sustainability ecosystem. By making large sustainability

datasets publicly available to anyone, ASDI seeks to accelerate

sustainability research and innovation by minimizing the cost

and time required for data acquisition and analysis. The datasets

Standardization of identity is an

important step in enabling businesses

to seamlessly participate in multiple,

complementary trade networks without

encountering administrative barriers.

Contour’s partnership with GLEIF will help

to make trade finance more accessible by

streamlining connections between trade

participants. It will do this by equipping

users of our network with the

information they need to transact

with confidence.

Sharing LEI data alongside other

important data assets like carbon

emissions and climate projections will

help users all over the world streamline

processes to support environmentally

friendly investments and make

sustainable financial decisions. This

will lead to faster innovation.

Aaron Seabrook,

Chief Operating Officer

The world of corporate

identities and relationships is

dynamic and complex. The OS-Climate

project aims to create a ‘one-stop shop’

for data and analytics tools to enable

breakthrough innovations in the area of

climate-aligned finance. The LEI provides

OS-Climate with an elegant and powerful

architectural solution to this problem, and

the programmatic availability of the

dataset on ASDI simplifies our own

data management and platform

services model greatly.

Michael Tiemann,

Project Lead

Ana Pinheiro Privette,

Global Lead, ASDI

2021 Annual Report

Global Legal Entity Identifier Foundation (GLEIF)

Basel, Switzerland

Consolidated Financial Statements 2021

for the Period from January 1 to December 31, 2021

Notes Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Fee revenue 3.1 13,201,695 11,987,725

Wages and salaries -7,059,042 -5,894,056

Social contributions and expenses for pensions and care -925,652 -780,217

Personnel expenses 3.2 -7,984,694 -6,674,273

Other operating expenses 3.3 -4,773,507 -4,465,448

Other operating income 3.4 162,764 345,590

Amortization and depreciation expense 4.5/4.6/4.7 -1,683,704 -1,070,035

Operating surplus / (loss) -1,077,446 123,559

Subsidies and donations 3.5 111,690 28,811

Financial income / expense 3.6 -239,631 -61,766

Net surplus / (loss) -1,205,387 90,604

Changes of components of net equity from actuarial gains and losses in

pension and similar obligations

3.2 13,996 -6,984

Items that will not be reclassified to net surplus 13,996 -6,984

Other comprehensive income 13,996 -6,984

Total comprehensive income -1,191,391 83,620

2021 Annual Report

Statement of Comprehensive Income

for the Period from January 1 to December 31, 2021

Assets Notes Dec. 31, 2021 Dec. 31, 2020

US$ US$

Receivables from LEI Issuers 4.1 1,846,734 1,639,591

Current financial assets 4.2 1,840 4,860

Other assets 4.3 374,827 430,412

Cash and cash equivalents 4.4 12,193,789 14,088,580

Current assets 14,417,190 16,163,443

Intangible fixed assets 4.5 1,468,286 1,220,640

Tangible assets 4.6 160,067 174,111

Long-term financial assets 4.2 144,973 157,069

Right-of-use assets 4.7 4,436,334 5,293,914

Non-current assets 6,209,660 6,845,734

20,626,850 23,009,177

Balance Sheet

as at December 31, 2021

Liabilities and equity Notes Dec. 31, 2021 Dec. 31, 2020

US$ US$

Payables due to vendors 4.8 913,290 965,390

Liabilities due to board directors 6.1 96 0

Current financial liabilities 4.9 1,223,308 1,198,379

Other payables 4.10 1,804,330 1,633,227

Deferred subsidies 3.5 5,031 96,222

Current liabilities 3,946,055 3,893,218

Provision for pension costs 3.2 33,611 46,500

Long-term financial liabilities 4.9 3,567,158 4,792,688

Deferred subsidies 3.5 1,217 6,571

Non-current liabilities 3,601,986 4,845,759

Paid-in foundation capital 55,927 55,927

Other reserves 28,428 14,432

Retained surplus 12,994,454 14,199,841

Organizational capital 4.11 13,078,809 14,270,200

20,626,850 23,009,177

2021 Annual Report

Cash Flow Statement

for the Period from January 1 to December 31, 2021

Notes Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Net surplus / (loss) -1,205,387 90,604

Amortization and depreciation expense 1,683,704 1,070,035

Increase (decrease) of provisions 5,960 9,086

(Gains) / losses from the disposal of fixed assets 72,274 463

Financial income / expense 112,622 24,306

Other non-cash expenses and income 127,173 90,511

Decrease / increase of receivables and other current assets -118,037 -256,953

Increase / decrease of liabilities to vendors and other operating (non-financial) liabilities 184,037 391,566

Interest received 51,737 87,061

Cash flow from operating activities 914,083 1,506,679

Receipts from the disposal of intangible and tangible fixed assets and right-of-use assets 4,311 459

Acquisition of intangible and tangible fixed assets and right-of-use assets 4.5/4.6/4.7 -999,407 -539,387

Acquisition / settlement of financial assets 4.2 4,361 33,509

Cash flow from investing activities -990,735 -505,419

Repayment of lease liabilities -981,940 -362,474

Proceeds from other (non-lease) financial liabilities -18,746 -46,427

Interest paid -164,261 -119,364

Cash flow from financing activities -1,164,947 -528,265

Total cash flow effects on cash and cash equivalents -1,241,599 472,995

Effect of changes in exchange rates on cash and cash equivalents -653,192 359,661

Cash and cash equivalents at beginning of period 14,088,580 13,255,924

Cash and cash equivalents at end of period 4.4 12,193,789 14,088,580

2021 Annual Report

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 at December 31, 2019 55,927 21,416 14,109,237 14,186,580

Net surplus 0 0 90,604 90,604

Other comprehensive income 0 -6,984 0 -6,984

Total comprehensive income 0 -6,984 90,604 83,620

Balance as at December 31, 2020 55,927 14,432 14,199,841 14,270,200

Net surplus / (loss) 0 0 -1,205,387 -1,205,387

Other comprehensive income 0 13,996 0 13,996

Total comprehensive income 0 13,996 -1,205,387 -1,191,391

Balance as at December 31, 2021 55,927 28,428 12,994,454 13,078,809

2021 Annual Report

Notes to the Consolidated Financial Statements

1. Information on GLEIF

The accompanying consolidated financial statements present the operations of Global Legal

Entity Identifier Foundation (hereinafter: ‘GLEIF’ or ‘the Foundation’) with its registered office

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-Vorstadt 5, 4002 Basel, Switzerland. In February 2015, GLEIF began operating a

permanent establishment in Frankfurt am Main, Germany, where the main operating activities

of the Foundation are located.

GLEIF was founded on June 26, 2014, by the Financial Stability Board, an association under

Swiss law. The purpose of GLEIF is to establish, maintain, and monitor the Global Legal Entity

Identifier System (‘GLEIS’), which provides a worldwide unique identification number (the ‘LEI’)

for all parties of financial transactions.

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 (‘ROC’), which had set forth requirements for the

structure of the GLEIS and for the management, monitoring, and standard-setting functions, as

well as the internal structure and the funding of GLEIF. The ROC has, as stipulated in Article 4

of the GLEIF Statutes, the regulatory oversight of the GLEIS, 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 GLEIF Board of

Directors on May 13, 2022.

2. Basis of Presentation and Summary of

Significant Accounting Policies

2.1 General

These consolidated financial statements have been prepared in accordance with International

Financial Reporting Standards (IFRS) 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 December 31, 2021. 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:

2021 Annual Report

• 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, 2021, 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 or

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, 2021 Dec. 31, 2020

US$ US$

Swiss Franc to U.S. dollar 1.0963 1.1360

Euro to U.S. dollar 1.1326 1.2271

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 an 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.

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.

2021 Annual Report

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 GLEIS 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.

2021 Annual Report

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 the 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.

2021 Annual Report

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 9, IAS 39, IFRS 7,

IFRS 4 and IFRS 16

Interest Rate Benchmark

Reform – Phase 2

Jan. 1, 2021

IFRS 4

Amendments to IFRS 4: Insurance

Contracts: Extension of the Temporary

Exemption from Applying IFRS 9

Jan. 1, 2021

IFRS 16

Amendments to IFRS 16 Leases:

COVID-19-Related Rent Concessions

beyond 30 June 2021

April 1, 2021

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 37

Onerous Contracts – Cost of

Fulfilling a Contract

Jan. 1, 2022

No material

effect

expected

Annual Improvements to

IFRS Standards 2018–2020

Jan. 1, 2022

No material

effect

expected

IAS 16

Property, Plant and

Equipment: Proceeds before

Intended Use

Jan. 1, 2022

No material

effect

expected

IFRS 3

Reference to the

Conceptual Framework

Jan. 1, 2022

No material

effect

expected

IAS 1

Classification of Liabilities

as Current or Non-current

Jan. 1, 2023

Effects

currently

being

evaluated

IAS 1

Presentation of Financial

Statements and IFRS Practice

Statement 2: Disclosure of

Accounting Policies

Jan. 1, 2023

Effects

currently

being

evaluated

IFRS 17

IFRS 17 Insurance Contracts

and amendments to IFRS 17

Insurance Contracts

Jan. 1, 2023

No material

effect

expected

IAS 8

Accounting Policies, Changes

in Accounting Estimates

and Errors: Definition of

Accounting Estimates

Jan. 1, 2023

Effects

currently

being

evaluated

IAS 12

Income Taxes: Deferred

Tax related to Assets and

Liabilities arising from a

Single Transaction

Jan. 1, 2023

No material

effect

expected

2021 Annual Report

2.15 Critical accounting estimates

The financial statements are prepared in accordance with IFRS as issued by the IASB. The

significant 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. 2021 Jan. to Dec. 2020

US$ US$

Europe 11,138,827 10,353,807

Asia 947,530 663,161

North and South America 1,041,074 897,333

Other regions 74,264 73,424

Fee revenues 13,201,695 11,987,725

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, 42.5% of the revenue is concentrated on three LEI

issuers.

3.2 Personnel expenses

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Wages and salaries 7,059,042 5,894,056

Social contributions and

expenses for pension and care

925,652 780,217

Personnel expenses 7,984,694 6,674,273

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 contribu-

tions are also included as part of these expenses.

As of year-end 2021, GLEIF Group employed 53 (2020: 50) employees. The average headcount

for 2021 is 54 (2020: 46) employees.

2021 Annual Report

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$ 15,971 (2020: US$ 11,480) within personnel expenses

and net interest expenses of US$ 95 (2020: US$ 107), and paid employer and employee

contributions of US$ 10,007 (2020: US$ 10,360) to the scheme.

Actuarial gains of US$ 11,657 (2020: actuarial losses of US$ 3,909) from the defined benefit

obligation plus US$ 2,339 gains (2020: plus US$ 3,075 losses) from the return on plan assets

have been recognized as other comprehensive income.

The defined benefit obligation amounted to US$ 128,227 on December 31, 2021 (December

31, 2020: US$ 117,798), net of the plan assets of US$ 94,616 (December 31, 2020: US$

71,298). A net pension liability of US$ 33,611 (December 31, 2020: US$ 46,500) was recognized

in the balance sheet as of December 31, 2021.

The weighted average duration of the obligation is 17.5 (2020: 18.9) years. The employee and

employer contributions expected for the next fiscal year are US$ 10,047 each.

For the calculation of the defined benefit obligation, a discount rate of 0.25% (2020: 0.2%) and

a long-term salary increase rate of 1.0% (2020: 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:

Dec. 31, 2021 Dec. 31, 2021

US$ US$

Defined benefit obligation with a change of

Discounting rate by +0.25 % / -0.25 % 122,880 134,095

Interest rate by +0.25 % / -0.25 % 130,523 126,011

Future salary increases by -0.25 % / +0.25 % 128,077 128,383

Life expectancy -1 year / +1 year 126,995 129,470

Pension increase by +0.25 % / -0.25 % 130,728 125,876

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, 2021 Dec. 31, 2020

US$ US$

Cash and cash equivalents 977 1,434

Equity instruments 22,582 16,848

Debt instruments 9,095 7,286

Real estate 14,418 10,709

Other 10,335 7,821

Total plan assets at fair value

(quoted market price)

57,407 44,098

Total plan assets at fair value

(non-quoted market price)

33,903 27,200

Plan assets 91,310 71,298

2021 Annual Report

3.3 Other operating expenses

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Rental 168,393 195,466

Contractors 440,137 337,168

Travel and entertainment 37,522 129,746

IT consulting and development 382,373 217,221

IT service and maintenance 763,449 924,397

Website translation expenses 171,376 175,759

Telephone and communication,

office expenses

122,609 138,907

Consulting and advice 905,064 858,914

Public relation advice 955,369 567,114

Legal advice 251,991 306,963

Tax advice, accounting and audit 196,387 327,666

Advertising 103,370 135,930

Staff training expenses 92,052 70,313

Insurance premiums 59,085 25,753

Disposal of fixed assets 76,585 966

Other 47,745 53,165

Other operating expenses 4,773,507 4,465,448

The consulting and advice item includes US$ 244,774 (2020: US$ 453,538) of research costs.

In order to refine the presentation within other operating expenses, US$ 462,504 has been

reclassified from IT consulting and development to IT service and maintenance for 2020.

3.4 Other operating income

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Release of prior year liabilities 153,565 91,891

Refunds and reimbursements 2,537 28,766

Income from subsequent

capitalization

834 168,855

Other 5,828 56,078

Other operating income 162,764 345,590

3.5 Subsidies and donations

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Subsidy granted in 2015 17 5,194

Subsidy granted in 2016 13,943 17,846

GIZ grant 97,730 5,771

Income from subsidies and

donations

111,690 28,811

In 2016 and 2015, 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 each year. 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

in 2016 and US$ 274,400 in 2015).

In 2020, GLEIF received a grant from the Deutsche Gesellschaft für Internationale Zusammenarbeit

(GIZ) GmbH. The grant is limited up to a maximum of EUR 80,000 and made available for the

period from Nov 01, 2020 – Apr 30, 2021. GLEIF received the pre-financing instalment in the

amount of EUR 72,000 (US$ 87,595) in 2020. In order to receive the grant, GLEIF is required to

incur certain qualifying expenditures during the aforementioned period. In 2021, the grant period

was extended to June 30, 2021 and increased to a maximum amount of EUR 86,684.57.

2021 Annual Report

The portions of the subsidies attributable to capital expenditures (tangible and intangible fixed

assets), advance payments, and deferred expenses have been deferred and are amortized

over the useful life of the associated fixed assets. The portions of the subsidies attributable to

future costs have been deferred and will be recognized in profit or loss in the same period as

the relevant expenses.

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.

3.6 Financial income / expense

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Interest income 51,737 87,061

Interest expense -164,359 -111,367

Currency translation gains 1,221,100 1,073,433

Currency translation losses -1,348,109 -1,110,893

Financial result -239,631 -61,766

The net currency translation losses result from payment of invoices in foreign currency as well as the

translation of monetary balances as at the end of 2021.

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, 2021 Dec. 31, 2020

US$ US$

Receivables due from vendors 1,341 4,860

Other current financial assets 499 0

Current financial assets 1,840 4,860

Dec. 31, 2021 Dec. 31, 2020

US$ US$

Deposit due later than one year

Office premises 144,973 157,069

Non-current financial assets 144,973 157,069

The balance outstanding as of December 31, 2021, relates 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, 2021 Dec. 31, 2020

US$ US$

Deposits receivable later than five

years

144,973 157,069

Total deposits receivable 144,973 157,069

GLEIF Group management has assessed the fair value of the security deposit balances to be

equal to their carrying amounts as the market deposit rates are as low as 0%.

2021 Annual Report

4.3 Other current assets

Dec. 31, 2021 Dec. 31, 2020

US$ US$

VAT refunds

Germany 114,604 119,811

Switzerland 29,624 3,909

Prepaid IT licenses and

maintenance

110,653 122,622

Annual newsletter subscriptions 28,973 29,103

Prepaid insurances 26,341 16,321

Prepaid travel expenses 1,148 5,484

Prepaid public relation advice 27,782 95,427

Prepaid training costs 152 10,073

Other prepaid expenses 11,935 18,370

Receivables due from employees 9,176 9,292

Reimbursements due from social

organizations

1,406 0

Other 13,033 0

Other current assets 374,827 430,412

4.4 Cash and cash equivalents

The position consists of current bank accounts, call money and cash on hand.

Dec. 31, 2021 Dec. 31, 2020

US$ US$

UBS Group AG 910,211 3,335,183

Sparkasse Langen-Seligenstadt 10,566,634 10,569,675

TD bank 716,899 183,437

Cash on hand 45 285

Cash and cash equivalents 12,193,789 14,088,580

2021 Annual Report

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$

2020

Accumulated cost 1,613,656 276,056 346,357 2,236,069

Accumulated

depreciation

-836,245 -179,184 0 -1,015,429

Carrying amount as of

Dec. 31, 2020

777,411 96,872 346,357 1,220,640

Reconciliation

Carrying amount as of

Jan. 1, 2020

621,365 141,700 395,375 1,158,440

Additions 262,028 0 224,724 486,752

Transfer -

Accumulated cost

270,315 3,427 -273,742 0

Depreciation -376,297 -48,255 0 -424,552

Carrying amount as of

Dec. 31, 2020

777,411 96,872 346,357 1,220,640

GLEIS IT

Solutions

Other

intangible

assets

Prepay-

ments

Total

US$ US$ US$ US$

2021

Accumulated cost 1,983,483 276,056 581,775 2,841,314

Accumulated

depreciation

-1,145,408 -227,620 0 -1,373,028

Carrying amount as of

Dec. 31, 2021

838,075 48,436 581,775 1,468,286

Reconciliation

Carrying amount as of

Jan. 1, 2021

777,411 96,872 346,357 1,220,640

Additions 106,525 0 700,267 806,792

Transfer -

Accumulated cost

464,849 0 -464,849 0

Disposal -

Accumulated cost

-201,547 0 0 -201,547

Depreciation -434,729 -48,436 0 -483,165

Disposal -

Accumulated

depreciation

125,566 0 0 125,566

Carrying amount as of

Dec. 31, 2021

838,075 48,436 581,775 1,468,286

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.

2021 Annual Report

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$

2020

Accumulated cost 507,629 220,645 70,466 0 798,740

Accumulated depreciation -417,153 -142,881 -64,595 0 -624,629

Carrying amount as of Dec. 31, 2020 90,476 77,764 5,871 0 174,111

Reconciliation

Carrying amount as of Jan. 1, 2020 111,133 106,297 17,614 0 235,044

Additions 66,822 10,121 0 0 76,943

Disposal - Accumulated cost -14,898 -10,121 0 0 -25,019

Depreciation -86,254 -38,654 -11,743 0 -136,651

Disposal - Accumulated depreciation 13,673 10,121 0 0 23,794

Carrying amount as of Dec. 31, 2020 90,476 77,764 5,871 0 174,111

2021

Accumulated cost 543,453 220,645 70,466 10,515 845,079

Accumulated depreciation -445,302 -169,244 -70,466 0 -685,012

Carrying amount as of Dec. 31, 2021 98,151 51,401 0 10,515 160,067

Reconciliation

Carrying amount as of Jan. 1, 2021 90,476 77,764 5,871 0 174,111

Additions 86,995 0 0 10,515 97,510

Disposal - Accumulated cost -51,171 0 0 0 -51,171

Depreciation -78,716 -26,363 -5,871 0 -110,950

Disposal - Accumulated depreciation 50,567 0 0 0 50,567

Carrying amount as of Dec. 31, 2021 98,151 51,401 0 10,515 160,067

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.

2021 Annual Report

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$

2020

Accumulated cost 3,978,110 2,068,675 6,046,785

Accumulated depreciation -656,470 -96,401 -752,871

Carrying amount as of Dec. 31, 2020 3,321,640 1,972,274 5,293,914

Reconciliation

Carrying amount as of Jan. 1, 2020 3,656,595 123,186 3,779,781

Additions 0 2,046,454 2,046,454

Disposal - Accumulated cost 0 -223,410 -223,410

Depreciation -334,955 -173,877 -508,832

Disposal - Accumulated depreciation 0 199,921 199,921

Carrying amount as of Dec. 31, 2020 3,321,640 1,972,274 5,293,914

2021

Accumulated cost 4,016,266 2,262,528 6,278,794

Accumulated depreciation -995,274 -847,186 -1,842,460

Carrying amount as of Dec. 31, 2021 3,020,992 1,415,342 4,436,334

Reconciliation

Carrying amount as of Jan. 1, 2021 3,321,640 1,972,274 5,293,914

Additions 38,156 193,853 232,009

Depreciation -338,804 -750,785 -1,089,589

Carrying amount as of Dec. 31, 2021 3,020,992 1,415,342 4,436,334

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, 2020

US$

Dec. 31, 2020

US$

Land and buildings

Technical and

computer equipment

Maturities of discounted lease payments

Not later than one year 424,191 703,202

Later than one year and not later than five years 1,599,601 1,395,738

Later than five years 1,797,349 0

Total lease payments 3,821,141 2,098,940

Dec. 31, 2021

US$

Dec. 31, 2021

US$

Land and buildings

Technical and

computer equipment

Maturities of discounted lease payments

Not later than one year 395,439 783,991

Later than one year and not later than five years 1,491,154 719,895

Later than five years 1,356,109 0

Total lease payments 3,242,702 1,503,886

In addition, the following amounts were recognized in the statement of comprehensive income

in 2020 and 2021:

Jan. to Dec. 2020

US$

Jan. to Dec. 2020

US$

Land and buildings

Technical and

computer equipment

Impact on the Statement of

Comprehensive Income

Interest expense -87,756 -6,981

Expenses for variable lease payments -62,528 0

Expenses for short-term leases -397 0

Total -150,681 -6,981

Jan. to Dec. 2021

US$

Jan. to Dec. 2021

US$

Land and buildings

Technical and

computer equipment

Impact on the Statement of

Comprehensive Income

Interest expense -83,634 -48,548

Expenses for variable lease payments -19,405 0

Total -103,039 -48,548

Cash outflows related to lessee activities in 2021 amounted

to US$ 1,325,182 (2020: US$ 923,027).

2021 Annual Report

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 payment terms agreed with the vendors range between 7 and 30 days after invoicing.

4.9 Financial liabilities

Dec. 31, 2021 Dec. 31, 2020

US$ US$

Leasing liabilities falling due later than one year and not later than five years 2,211,049 2,995,339

Leasing liabilities falling due later than five years 1,356,109 1,797,349

Long-term financial liabilities 3,567,158 4,792,688

Leasing liability portion falling due within one year after the balance sheet date 1,179,430 1,127,393

Short-term bank liabilities 7,812 27,772

Liabilities due to LEI issuers 36,066 43,214

Current financial liabilities 1,223,308 1,198,379

Total financial liabilities 4,790,466 5,991,067

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:

Jan. to Dec. 2021 Jan. to Dec. 2020

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 5,920,081 27,772 5,947,853 3,871,589 71,590 3,943,179

Additions 230,242 0 230,242 2,045,663 0 2,045,663

Changes from financing cash flows -1,114,122 -18,747 -1,132,869 -457,210 -46,461 -503,671

Disposal 0 0 0 -32,511 0 -32,511

Interest accrued 132,182 0 132,182 94,735 0 94,735

Currency revaluation -421,795 -1,213 -423,008 397,815 2,643 400,458

Carrying amount as of Dec. 31 4,746,588 7,812 4,754,400 5,920,081 27,772 5,947,853

2021 Annual Report

4.10 Other payables

Dec. 31, 2021 Dec. 31, 2020

US$ US$

Wage and church tax payables 105,021 89,553

Social security liabilities 43,642 53,337

Outstanding vacation 183,845 216,378

VAT payable

Russia 593 586

Variable salary 614,906 577,756

Bonuses 652,833 597,981

Other liabilities due to employees 203,490 97,172

Other 0 464

Other payables 1,804,330 1,633,227

The variable remuneration to GLEIF Group employees is accrued for in 2021 in accordance with

the employment contracts. The bonuses to employees are accrued in accordance with board

and management decisions.

The outstanding vacation liability in 2021 reflects the accrued salary and social contribution

payments for the respective time.

4.11 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 2021 will be allocated to the GLEIF

Group’s reserves. Together with the retained surplus and other reserves, the consolidated total

organizational capital is US$ 13,078,809.

2021 Annual Report

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, 2021 Dec. 31, 2020

Carrying amount Carrying amount

US$ US$

Financial assets measured at cost or

amortized cost

Long-term security deposits 144,973 157,069

Receivables from LEI issuers fees 1,846,734 1,639,590

Cash and cash equivalents 12,193,789 14,088,580

Receivables due to vendors 1,341 4,860

Other non-derivative financial assets 499 0

14,187,336 15,890,099

Financial liabilities measured at cost

or amortized cost

Payables due to vendors 913,290 965,390

Liabilities due to Board Directors 96 0

Leasing liabilities 4,746,588 5,920,081

Liabilities due to banks 7,812 27,772

Liabilities due to LEI issuers 36,066 43,213

5,703,852 6,956,456

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. The carrying amount of the long-term security

deposit represents a reasonable approximation of its fair value, as the current market deposit

rates are as low as 0%.

The realization and valuation of the financial assets and liabilities mentioned above generated

a net foreign currency loss of US$ 219,737 (2020: net foreign currency gain of US$ 385,108).

Total interest income / expense and bank transaction expenses from financial instruments are:

Jan. to Dec. 2021 Jan. to Dec. 2020

US$ US$

Total interest income 51,189 86,081

Total interest expense 164,219 111,218

Total bank transaction expenses 6,406 6,002

The bank transaction expenses are presented under the operating expenses.

2021 Annual Report

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.

2020 2020

Effect on equity Effect on surplus

US$ US$

10% Increase of transaction currency

Swiss Franc 4,738 4,738

Euro -226,229 -226,229

-221,491 -221,491

10% Decrease of transaction currency

Swiss Franc -4,738 -4,738

Euro 226,229 226,229

221,491 221,491

2021 2021

Effect on equity Effect on surplus

US$ US$

10% Increase of transaction currency

Swiss Franc 17,693 17,693

Euro 521,441 521,441

539,134 539,134

10% Decrease of transaction currency

Swiss Franc -17,693 -17,693

Euro -521,441 -521,441

-539,134 -539,134

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.

The interest rate risk exposure of GLEIF Group is low due to

the short-term structure of a majority of financial assets and

liabilities in the balance sheet as of December 31, 2021.

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.

2021 Annual Report

6. Other Information and Disclosures

6.1 Related party transactions

Related individuals of GLEIF Group include the members of the GLEIF Board of Directors,

the Chief Executive Officer and the senior management, as well as the members of the ROC.

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, 2021, and December 31, 2020:

Jan. to

Dec. 2021

Dec. 31,

2021

Jan. to

Dec. 2020

Dec. 31,

2020

Expenses Liabilities Expenses Liabilities

US$ US$ US$ US$

Board directors

Travel expense

reimbursement

16,667 96 53,340 0

Key management

personnel

Fixed remuneration 1,108,890 5,434 1,109,144 0

Variable remuneration

and bonus

409,461 394,949 394,508 424,817

Travel expense

reimbursement

392 0 13,540 523

Other related parties

Remuneration 0 0 47,400 0

1,535,410 400,479 1,617,932 425,340

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 2021 and 2020 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$ 15,971 (2020: US$ 11,480)

Other related parties consist of a U.S. consulting firm which provides consulting services

to GLEIF. The owner and managing director was a member of the board of directors until

June 2020.

6.2 Observance of the GLEIF Statutes’ requirements

The purpose of GLEIF is to act as the operational arm of a GLEIS and thereby to support on

a not-for-profit basis the implementation of a global LEI 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$ 35,086 audit fees related to professional services rendered by the Foundation’s

independent auditors, Ernst & Young Ltd, Zurich, Switzerland, were accrued for fiscal

year 2021.

6.4 Subsequent events

GLEIF is not aware of any significant subsequent event after the balance sheet date that would

require disclosure. Referring to the Coronavirus crisis and the related restrictions, the whole

organization works from home and the business could run as usual without any issues.

2021 Annual Report

7. Board of Directors, Secretary, and Chief Executive Officer

Sandra Boswell

Sydney, Australia

Partner, Grant Thornton Australia

Changmin Chun

Goyangsi, South Korea

Professor of Law, Seoul National University

of Science and Technology, College of

Business and Technology, Department of

Business Administration (GTM Program)

Amy A. Kabia

Chappaqua, United States of America

Managing Director, Party Reference

Data Operations, JP Morgan Chase

Hany Choueiri

Hampton, United Kingdom

Chief Data Officer, Aldermore Bank

Jacques Demaël

Aubonne, Switzerland

Senior VP, Strategy & Business Services, SITA

T. Dessa Glasser

Palm Beach Gardens, United

States of America

Principal, Financial Risk Group

Alfredo Reyes Krafft

Mexico City, Mexico

Founding Partner, Reyes Krafft Solís SA

DE CV (LEX INF IT LEGAL ADVISORY)

Javier Santamaría

Pozuelo de Alarcón, Spain

Chair, European Payments Council

Daniel Cotti

Surses, Switzerland

Managing Director, TradeIX,

Center of Excellence, Banking &

Trade, Marco Polo Network

Salil Kumar Jha

New Delhi, India

Independent Director, Indian Bank

Humaid Mudhaffr

Riyadh, Saudi Arabia

Chief Executive Officer (CEO) and Partner,

Manning Business Company Ltd.

Hendus Venter

Dubai, The United Arab Emirates

Group Chief Information Officer (CIO)

Kaoru Mochizuki

Tokyo, Japan

General Manager, Settlement

Planning, Mizuho Financial Group

Zaiyue Xu

Shanghai, China

CEO, China International Payment

Service Corp. (CIPS)

Steven A. Joachim

Basking Ridge, United States of America

Chairman, GLEIF

Nassib Abou-Khalil

Dubai, The United Arab Emirates

Chief Legal Office, Nokia

Vivienne Artz

Headcorn, United Kingdom

Chief Privacy Officer, London

Stock Exchange Group

GLEIF’s Board of Directors consisted of the following individuals during the fiscal year 2021:

2021 Annual Report

Departures from the GLEIF Board of Directors

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 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 Thomas Sprecher, Zurich, Switzerland, as Secretary of the Board on June 26, 2014.

Signing authorities have been established as per GLEIF Statute Article 35 ‘Signatures’.

Basel, May 13, 2022.

Hiroshi Nakatake

Tokyo, Japan

Resigned in June 2021

Daniel L. Goroff

New York, United States of America

Resigned in June 2021

Monica Singer

Cape Town, South Africa

Resigned in June 2021

Elemér Terták

Brussels, Belgium

Resigned in February 2021

Kam Keung Tse

Hong Kong, China

Resigned in June 2021

2021 Annual Report

Independent

Auditor’s Report

Ernst & Young Ltd

Aeschengraben 9

P.O. Box

-4002 Basel

Phone +41 58 286 86 86

Fax

+41 58 286 86 00

www.ey.com/ch

To the Board of Directors of

Global Legal Enti

ty Identifier Foundation, Basel

Basel, 1 June 2022

Independent auditor’s report on the audit of the

consolidated financial statements

Opinion

In accordance with the terms of our engagement, we have audited the consolidated financial statements

of the Global Legal Entity Identifier Foundation (GLEIF) and its subsidiaries (“the Group”), which

comprise the consolidated statement of financial position as of 31 December 2021 and the consolidated

statement of comprehensive income, consolidated statement of changes in organizational capital and

consolidated statement of cash flows for the year then ended 2021, and notes to the consolidated

financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the

consolidated financial position of the Group as of 31 December 2021, and its consolidated financial

performance and its consolidated cash flows for the year then ended in accordance with International

Financial Reporting Standards (IFRS).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs).

Our responsibilities under those 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 Code of Ethics for Professional Accountants

issued by the International Ethics Standards Board for Accountants (IESBA Code) and the requirements

of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with

these requirements and the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Other information included in the GLEIF’s 2021 Annual Report

Other information consists of the information included in the Annual Report, other than the consolidated

financial statements and our auditor’s report thereon. The Board of Directors is responsible for the other

information. Our opinion on the consolidated financial statements does not cover the other information

and we do not express any form of assurance conclusion thereon.

2021 Annual Report

Independent

Auditor’s Report

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 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.

Responsibilities of the Board of Directors for the consolidated financial statements

The Board of Directors is responsible for the preparation of consolidated financial statements that give

a true and fair view in accordance with IFRS 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 ISAs 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.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the GLEIF’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the GLEIF’s ability to continue as a going concern.

If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up

to the date of our auditor’s report. However, future events or conditions may cause the GLEIF to

cease to continue as a going concern.

2021 Annual Report

Independent

Auditor’s Report

We communicate with those charged with governance regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

Ernst & Young Ltd

Licensed audit expert

(Auditor in charge)

Enclosure

►

Consolidated financial statements (the statement of comprehensive income, balance sheet,

cash flow statement, statement of changes in organizational capital and notes)

Armin Imoberdorf

(Qualified

Signature)

Jan Marxfeld

(Qualified

Signature)

Advisor Country of Origin Type of Service

Abogado Frank Müller Spain Legal services

AD &M Abogados y Consultores S.L.P. Spain Payroll services

Adm In Swiss Sarl Switzerland Payroll services

ADP USA Payroll services

A&S Financial Advisory Firm Japan Payroll services

Avelino Law LLP USA Legal services

Briner Legal Switzerland Legal services

Brix & Partners LLC USA Legal and tax services

CMS von Erlach Partners Ltd Switzerland

Legal services trademark

LEI issuer contracts

Ernst & Young AG (EY) Switzerland Statutory audit

Joanknecht BV The Netherlands Payroll services

mediadefine GmbH Germany GLEIF’s Data Protection Officer

Niederer Kraft Frey Ltd Switzerland

Legal services

Board Secretary

White & Case LLP USA Legal and tax advice

WP StB Christian Hecht Germany Accounting & tax services

2021 Annual Report

Overview of Professional Advisors

2021 Annual Report

Abbreviations

AML – Anti-Money Laundering

API – Application Programming Interface

ASDI – Amazon’s Sustainability Data Initiative

BIMCO – Baltic and International Maritime Council

CA – Certification Authority

CFCA – China Financial Certification Authority

CFT – Countering the Financing of Terrorism

DCSA – Digital Container Shipping Association

DSI – Digital Standards Initiative

EGF – Ecosystem Governance Framework

ERP – Enterprise Resource Planning

ESG – Environmental, Social and Governance

FIATA – International Federation of Freight Forwarders

Association (Fédération Internationale des

Associations de Transitaires et Assimilés)

FSO – Swiss Federal Statistical Office

GDCA – Guang Dong Certificate Authority

GIZ – Deutsche Gesellschaft für Internationale

Zusammenarbeit GmbH

GLEIF – Global Legal Entity Identifier Foundation

GLEIS – Global LEI System

GS1 – Global Standards 1

IAS – International Accounting Standards

IASB – International Accounting Standards Board

IEC – International Electrotechnical Commission

IFRS – International Financial Reporting Standards

IPCSA – International Port Community Systems

Association

IRC – Internal Revenue Code

ISO – International Organization for Standardization

KERI – Key Event Receipt Infrastructure

LEI – Legal Entity Identifier

LOU – Local Operating Units

LSEG – London Stock Exchange Group

ROC – Regulatory Oversight Committee

SME – Small and Medium Sized Enterprise

SMS – Service Management System

SWIFT – Society for Worldwide Interbank Financial

Telecommunications

ToIP – Trust over IP Foundation

TSP – Trust Service Provider

vLEI – Verifiable LEI

WCO – World Customs Organization

2021 Annual Report

Website:

https://www.gleif.org/en/

Email:

info@gleif.org

LinkedIn:

https://www.linkedin.com/company/global-

legal-entity-identifier-foundation-gleif-/?trk=biz-

companies-cym

Twitter:

https://twitter.com/GLEIF

YouTube:

https://www.youtube.com/channel/

UCP2xdWOFG7dWNaFIBKyejhg

Blog:

https://www.gleif.org/en/newsroom/blog

GLEIF Locations

Headquarters:

Global Legal Entity Identifier Foundation

(GLEIF)

St. Alban-Vorstadt 5

4052 Basel

Switzerland

German office:

GLEIF

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

Acknowledgements

GLEIF thanks the following organizations for their

support with the GLEIF Annual Report 2021:

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

6, The Dockside

Leeds Dock

LS10 1EG

United Kingdom

LEI: 213800L1Y3SPQ7155828

Raw Creative Ltd

Royal House

110 Station Parade

Harrogate

HG1 1EP

United Kingdom

2021 Annual Report

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 5

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

gleif.org