Featuring the LEI
While the origin of the LEI is firmly rooted in financial services and regulation, its future undeniably points to universal applicability across public and private sectors, with relevance to organizations large and small. Regulations, recommendations, and evolving business cases across the globe present an opportunity for additional emerging sectors and ecosystems to benefit from the LEI and to see an immediate and positive impact.
In the fight against money laundering, terrorism financing, and other forms of financial crime, more than 200 financial regulators worldwide have to date mandated the LEI among legal entities engaging in capital markets. But GLEIF’s ambition for the LEI does not stop there. The Global LEI System is continuing to expand beyond regulated use and re-focusing to help organizations harness the LEI’s capability to bring greater trust, efficiencies, and transparency to trade of all kinds. Most notably:
- Cross-border payments
- Supply chain
- Digital Organizational Identity
There is growing acceptance and support for the LEI’s value as a unique universal identifier across these sectors. Advocacy is advancing the LEI forward, enabling standardized entity identity, and promoting trust and transparency across the global economy.
The LEI enables cross-border payment transactions to become faster, cheaper, more transparent and more inclusive. It provides a standardized approach to identifying organizations globally, that can enable consumers, businesses and financial institutions to verify that funds are transferred across international borders to the correct entity.Learn More
Digital Organizational Identity
Industries worldwide are adjusting to the digitization of processes and transactions. Yet there is a fundamental principle that hinders this development: trust. How can an organization trust that a supplier located hundreds of kilometers away is who they say they are? How can individuals verify the authenticity of the organization receiving their personal data? A trusted process for confirming a stakeholder’s legal identity in a digital environment has become a foundational requirement; it enables the determination of ‘who’s who’ within a digital community.
GLEIF has pioneered a new form of digitized organizational identity to meet the global need for automated authentication and verification of legal entities across a range of industries. It is called the verifiable LEI (vLEI). By creating the vLEI, GLEIF has answered an urgent and unmet need. It has pioneered a multi-stakeholder effort to create a new global ecosystem for verifiable digital organizational identity.Learn More
International Supply Chain of Goods and Services
A trusted and reliable method of identifying legal entities within digital environments is a vital prerequisite to secure, seamless, and well-functioning international supply chains. The LEI can play a key role in this, thanks to its unique value proposition: machine readable, open, and easily integrated, it is a globally recognized identifier that can be used to verify counterparties within milliseconds. The LEI can also support the solid foundations needed for an efficient and successful global trading environment, by mitigating the risk of fraud and money laundering. It can do all of this, while supporting the financial inclusion of small and medium companies, helping to create a sustainable and responsible business environment.Learn More