Natural person worldwide within the financial system. Once issued, the legal entity number can be used to legitimize the “legal entity” in financial transactions or usage matters.
Securities trading companies should report the relevant LEI number to the National Supervisory Authority whenever there is a trade. As such, LEI acts as a unique identifier and mechanism for preventing anonymous choose a Legal Entity Identifier (LEI) Trade.
Why 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. Go to leiservice.com and do the needful.
5 Reasons to Choose a Legal Entity Identifier (LEI)
1-The LEI code is the most important standard global identifier.
Formed as a result of the 2008 financial crisis, LEI was designed to provide a strong organizational identity to relevant counterparts. LEIs protect citizens during market crises by providing an understanding of dependence and risk exposure. LEI is supported by the G20 and the Financial Stability Board and is regulated by the Global LEI Foundation (GLEIF).
2-LEI provides compliance procedures for cross-border transactions.
No LEI, no trade: Failure to comply with certain rules carries penalties or “non-trade” restrictions. LEIs are essential information as required by MiFID, MiFIR, Dodd-Frank Act, EMIR and many other regulations. New regulations mandating the use of LEIs are made almost monthly.
3-LEI provides confidence in the legitimacy of your organization.
Service providers and credit scoring organizations use LEIs and look for LEI compliance in the Know Your Customer (KYC) onboarding process and in the process of updating customer identities. Lack of LEI can hinder business activities, operations and transactions.
4-LEI records contain valuable, accurate and transparent identification data features.
Both humans and machines can verify LEI. The entire LEI database is open and can be searched via the Internet. LEIs always provide an up-to-date organizational identity. LEI is the only identifier that connects parents’ and children’s associations. LEI supports multiple languages for names and addresses. Achieving the LEI compliance mark ensures that the organization’s reference data is accurate and reliable.
5-LEI allows applications to take advantage of your strong organizational identity.
LEIs include electronic and digital signatures, documents, press releases, site sales, QR codes, barcodes and more. Human and machine-readable XBRL digital signatures are linked to the LEI to provide permanent assurance about the integrity of documents such as annual reports and financial statements. LEIs are now included in x.509 digital certificates. LEI will be included in the new ISO payment criteria for SWIFT transactions.
The LEI code is your global identifier. It allows you to be recognized globally.
*LEI is a standard organization identifier endorsed by both the G20 and the Financial Stability Board and regulated by the Global LEI Foundation (GLEIF).
*The LEI code is a direct reference to your organization’s identity record (see UbiSecure’s LEI record).
*LEI is just as important as other organization identification features such as your local business registry company number, VAT number, domain, etc.
*LEI is a required identifier for enabling cross-border transactions.
* LEI enhances your organization’s reputation locally and globally.
* 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.
Hope this is reason enough to get LEI! If you haven’t already, check out leiservice.com today to get LEI. With our auto-release, you’ll get a registered LEI code in minutes.