Introducing the Legal Entity Identifier (LEI)

I herewith confirm that I read, understood and accepted the privacy policy. I hereby confirm that data which I typed and clicked might be sent to social network owners and saved and electronically processed by them.

The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions and other official interactions. Each LEI contains information about an entity’s ownership structure. In this way, the LEI answers the questions of 'who is who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool is a global directory, which greatly enhances transparency in the global marketplace.

The Financial Stability Board (FSB) has reiterated that global LEI adoption underpins “multiple financial stability objectives” such as improved risk management in firms as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and financial fraud. Last but not least, LEI rollout “supports higher quality and accuracy of financial data overall”.

The publicly available LEI data pool is a unique key to standardized information on legal entities globally. The data is registered and regularly verified according to protocols and procedures established by the Regulatory Oversight Committee.

LEI benefits include:

• Increased transparency and trust between legal entities globally
• Streamlined counterparty due-diligence and KYC processes, facilitating global trade
• Simplified and more efficient client onboarding and lifecycle management
• Harmonized, centralized and supplemented national business registry data, supporting legal entity data consumption and the provision of related services
• Entity relationships are exposed (beneficial owners, parent/child organizations). This both enhances and simplifies regulatory supervision in Anti-Money Laundering (AML), Counter Funding of Terrorism (CFT), and other related activities
• Supports compliance with current and future regulatory requirements

The Global LEI Index is free for all to access. This means anyone anywhere in the world can know if a private or public organization is who it claims to be. This information allows legal entities to fully trust each other, safeguarding all sorts of investment and trade decisions, along with other interactions.

In cooperation with its partners in the Global LEI System, the Global Legal Entity Identifier Foundation (GLEIF) continues to focus on further optimizing the quality, reliability and usability of LEI data, including in automated, digital use-cases, empowering market participants to benefit from the wealth of information available with the LEI population.

The drivers of the LEI initiative, i.e. the Group of 20, the FSB and many regulators around the world, have emphasized the need to make the LEI a broad public good. The Global LEI Index, made available by GLEIF, greatly contributes to meeting this objective. It puts the complete LEI data at the disposal of any interested party, conveniently and free of charge.

The benefits of the Global LEI Index to the wider business community and global digital economy grow in line with the rate of LEI adoption. To maximize these benefits , firms are encouraged to engage in the process and get their own LEI. Obtaining an LEI is easy. Registrants simply contact their preferred business partner from the list of LEI issuing organizations available on the GLEIF website.