The Legal Entity Identifier (LEI) is firmly settled as the recognized code to determine who is who and who owns whom, with nearly 1.6 million organizations already having one. We’ve outlined some of the most compelling reasons to obtain an LEI, as well as why your company should do so as quickly as possible.
Significant information and details about an LEI are further elaborated on leiservice.com. Visit for more.
Let’s crack the reasons up to you.
1. Business Recognition
The LEI is a globally recognised enterprise identification backed by the G20 and the Financial Stability Board, and governed by the Global LEI Foundation (GLEIF). This number is a live link to your company’s identification record. Other organization identity features, such as your local Corporate Registry reference number, Tax number, addresses, and so on, are just as vital as the LEI.
The LEI is a necessary identifier for cross-border transactions to take place.It boosts your company ‘s reputation both locally and internationally which is indeed widely used and has a large installed base. So far, over 1.5 million LEIs have been granted, and the installation base is rapidly expanding.
2. KYC Procedures
Check to see if your organization may be penalized for not having an LEI.
LEI is already used for KYC, B2B onboarding, and refreshing client identification data by large vendor groups. In the banking sector, the use of LEIs as a cost-cutting strategy in KYC/onboarding has been thoroughly investigated.
By linking various references and layouts of identity, it is sufficient simply at a more trustworthy identity affirmation. LEI is the principal splitter between all geographic, or private sector identifiers.The LEI is created using an identity data reference architecture that incorporates Entity Legal Forms (ELF) identifiers and is standardized and consistent (Ltd, GmbH, etc.). By categorizing legal entities, the consistent ELF data improves the user experience.
3. Enhances Security And Brand Protection
The use of your LEI in web sites, media releases, site emblems, QR barcodes, bar codes, and other places on the internet is becoming more frequent. XBRL supports LEIs already (the open international standard for digital business reporting). As the standardized organization identification, LEIs can be incorporated in contemporary human-readable and machine-readable XBRL records like periodic reports and financial statements.
As an organization identification in SWIFT transactions, LEIs will shortly be integrated in the new ISO transaction standards. The draught ISO 17442-2 and ETSI TS 119 412-1 will shortly standardize the incorporation of LEIs into virtual certificates, allowing for the delivery of digital signatures and processing solutions that include the LEI.
4. Prevent Transaction Fines
Purchasing LEIs is required by a number of rules. Every month, new regulations requiring the use of LEIs comes into effect; be ready and secure an LEI ahead of time.
Hopefully, they are sufficient reasons to obtain an LEI! If you haven’t already done so, you can make sure to visit recognized websites that offer LEI registration to receive your LEI. In just a few minutes, you’ll receive a qualified LEI code thanks to our automated issuance.