What is a Legal Entity Identifier?
A Legal Entity Identifier (LEI) is a unique global identification number for a legal entity. It’s also referred to as an LEI code, or LEI number. It helps identify legal entities in globally accessible databases. The LEI permits businesses and organizations to find the legal entity they’re looking for easily.
The public listing of an LEI on the World Wide Web includes the legal name, legal jurisdiction, LEI registration authority and status. The existence of an LEI guarantees that business owners, shareholders and other stakeholders can get crucial information about a company in real-time. Furthermore, it ensures that a company is in compliance with international regulations. Additionally LEIs make it easier for financial institutions to accept new customers.
LEIs are widely accepted as an international identity standard. The ISO 17442 standard specifies the structure and content of an LEI. The standard specifies that the code is twenty-digits long and includes references. The LEI is publicly available and can be accessed by the public. This allows cross-border transactions to be conducted without interruption. Get all details on Legal entity identifier here.
An LEI is an alphanumeric code with a unique 20 characters that connects to the most important reference information to allow the identification of a legal entity in an investment transaction. A publically accessible LEI database pool is an international directory that improves transparency in the global market and provides transparency for users in both the private and public sector.
The Global Legal Entity Identifier Foundation is the organization that oversees the Global LEI System. The foundation is the governing body of the global LEI System and establishes the standards and rules that authorized entities must follow. The LEI Foundation has a central unit that can help your business create an identity for your legal entity.
Although LEI data isn’t sufficient to create an entire corporate organization chart but it can be a good starting point. The Global Legal Entity Identifier Foundation has made significant progress in establishing a universal number of legal entities. The data also contains details on ownership.