As global business and third party relationship becomes more complex, the need for clear and speedy business identification grows. Common standards like LEI enable better identification and data sharing, helping to lower cost and speed up business processes. LEI is another useful tool for international business growth.
A Legal Entity Identifier (LEI) is a 20-digit, alpha-numeric code that enables clear and unique identification of legal entities participating in financial transactions. LEIs, like other identifiers, are needed by firms to fulfil their reporting obligations under financial regulations and directives. LEIs are also key for matching and aggregating market data, both for transparency and regulatory purposes. The code is linked to a set of key reference information relating to the legal entity in question; such as the official name of legal entity according to the official registers, the country where the entity is formed, the address in details, the status of the entity, and other relevant information. Once a legal entity obtains a LEI code, the code is assigned to that legal entity for its entire life.
Any legal entity can apply for LEIs but not limited to: