Legal Entity Identifier (LEI)

A Legal Entity Identifier (LEI) is a unique 20-character code that identifies legal entities participating in financial transactions. Established by the Global LEI System (GLEIS) after the financial crisis, LEIs improve transparency by standardizing who is who (entity identity) and who owns whom (Level 2 relationship data). In compliance, LEIs streamline KYB, reduce ambiguous matches, and enhance cross-border reporting (e.g., derivatives, securities).Institutions validate LEIs via Local Operating Units (LOUs) and monitor status (issued, lapsed) to ensure freshness. Mapping LEIs to registry data, UBO structures structures, and sanctions screening sharpens risk assessments and reduces false positives. LEIs also facilitate interoperability across systems, counterparties, and jurisdictions, supporting accurate settlement, risk aggregation, and resolution planning.Maintaining up-to-date LEIs, especially for complex groups, strengthens controls, speeds onboarding, and supports regulators’ push for standardized, high-quality reference data.