HomeGeneralReason to Get LEI

Reason to Get LEI

With approximately 1.6 million organizations now having a Legal Entity Identifier (LEI), LEI has been firmly established as a standard code to identify who owns and who owns it. We’ve broken down some of the key reasons for getting LEI, and why your organization should register for LEI as soon as possible. This website will answer all your questions.

Reason one:

The LEI code is your global identifier.  It allows you to be recognized globally.

1- LEI is a standard organization identifier endorsed by both the G20 and the Financial Stability Board, and regulated by the Global LEI Foundation (GLEIF).

2- The LEI code is a direct reference to your organization’s identity record.

 3-  LEI is just as important as other organizational identification attributes such as your local business registry company number, VAT number, domain, etc.

4-  LEI is a required identifier for enabling cross-border transactions.

5-  LEI enhances your organization’s reputation locally and globally.

 6-  LEI is already widely supported with a key installation base. To date, more than 1.5 million LEIs have been issued and the installation base is growing rapidly.

Reason two:

1- Many regulations require the use of LEIs.  Prevents non-compliance transactions and risk penalties.

 2-There are a number of regulations that require organizations to purchase LEIs (see latest regulations).

  3-The new rules requiring the use of LEI are going live every month.  Be prepared in advance and get LEI.

Reason three:

1-LEI codes are widely used for the Know Your Customer (KYC) process. Make sure your organization is recognized as a trusted LEI holder.

 2-Make sure your organization is not penalized for not having LEI.

 3- The wider vendor network (see GLEIF vendor stakeholder network) already relies on LEI to update KYC, B2B onboarding and client identification data.

4-The use of LEI for cost savings in KYC / onboarding in the banking sector has been thoroughly researched (see GLEIF eBook).

5- LEI is the primary liaison between all regional, or private sector, identifiers, and by combining multiple sources and formats of identification, more reliable identification can be concluded.

 6-LEI is created using a standard, permanent identification data reference schema that includes Entity Legal Form (ELF) codes (LTD, GmbH, etc.).  Clear ELF data provides a superior user experience by ranking legal entities providing clear insights into the global market.

Reason four:

  1. LEI records contain a powerful set of identity data features. They help build confidence in who you are in the physical world and now in the online world.

 2-Both humans and machines can verify LEI.  The GLEIF database of released LEIs is open and searchable through its web interface, full data set download or API.

 3-To remain active, LEI must be renewed annually, and renewal requires re-verification of the corporate statement.

 4-LEI can be easily updated for the organization at no cost and can always represent the correct identity of the organization.  There is no need to issue a new code when corporate details change.

 5-LEI is the only identifier that publicly associates parent and children’s organizations.  Known as Level 2 data, LEI provides transparency in the “who owns” aspect of an organization’s identity.

 6-LEIs can list multiple “like a business” names and previously added names, providing a historical audit trail to counterparts.

 7-LEI supports multiple languages ​​for names and addresses.  Local language support provides better local understanding and reliance on identity data.

 8-The data quality of the LEI system is open and transparent.  LEI reference data can be challenged.  There is a definite, publicly accessible process within the ecosystem for openly challenging identification data if a peer misunderstands it.

CONCLUSION

Originally driven by regulation, LEI is now being adopted by companies for more practical reasons as wider benefits become more apparent.  LEI is no longer seen as a regulatory reporting burden, it is seen as an asset. With approximately 1.6 million organizations now having a Legal Entity Identifier (LEI), LEI has been firmly established as a standard code to identify who owns and who owns it. It provides security for international transactions, shortcuts KYC procedures and increases transparency in the global financial system.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments