The Legal Entity Identifier (LEI) is a 20-character, alphanumeric code that uniquely identifies a legal entity or structure that is party to a financial transaction in any jurisdiction. The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Each LEI contains information about an entity’s ownership structure and thus answers the questions of ‘who is who’ and ‘who owns whom’. The LEI data pool can be regarded as a global directory that greatly enhances transparency in the global marketplace.
Banks around the world are starting to mandate that their corporate borrowers obtain a Legal Entity Identifier (LEI), sometimes referred to as a Global Legal Entity Identifier (GLEI), to improve their risk management and better understand their clients’ risk exposure.
Any legal entity that is a party to financial transactions can obtain a LEI. This entity could be an incorporated entity, partnership firm, proprietorship firm, bank, mutual fund, asset management company, trust, holding company, special purpose vehicle (SPVs) etc.
#RiskManagement #KnowYourCustomer #DueDiligence #Banking
29 сен 2024
