LEI Structure - Format of the Legal Entity IdentifierThe LEI Code is an ISO standard (17442) which consists of 20 letters and numbers.If you are transacting in the global financial system, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
The Legal Entity Identifier is a 20 digit alpha-numeric code unique to each legal entity which has been assigned an LEI. No two entities may have the same LEI. What makes this identifier truly unique is that it is supported by high quality, verified data. Data which is publicly available and free to access. |
|
LEI Format
The LEI is rapidly becoming the primary global business identifier as over 1.6 million entities now rely on the ISO standard for their regulatory and global business needs.
At first sight, the LEI may seem like a random assortment of numbers and letters. The LEI code length is comprised of a 20 digit alpha numeric code. This is not the case. All 1.6 million Legal Entity Identifier numbers which have been issued follow the below structure. However each LEI number is unique and stores relevant information for each entity on the searchable LEI database. See below for an LEI Number example and how many digits are in the LEI structure below.
Legal Entity Identifier LEI Example
Characters 1-4
You can see in the above LEI Code example that the first 4 digits are the (Local Operating Unit) LOU Identifier. This identifies the source from which the LEI was issued. This allows the data user traceability on the LEI in case ownership needs to be verified.
You can see in the above LEI Code example that the first 4 digits are the (Local Operating Unit) LOU Identifier. This identifies the source from which the LEI was issued. This allows the data user traceability on the LEI in case ownership needs to be verified.
Characters 5-6
These are the LEI reserved digits. In every LEI number format they remain 0,0 always.
These are the LEI reserved digits. In every LEI number format they remain 0,0 always.
Characters 7-18
This section of the LEI number is unique and different for every Legal Entity. This Alphanumeric section of the LEI number can identify each and every registered trader on the Global database. Every entity on the LEI index will have a unique code in its LEI from digits 7-18 and the LEI length always remains the same.
This section of the LEI number is unique and different for every Legal Entity. This Alphanumeric section of the LEI number can identify each and every registered trader on the Global database. Every entity on the LEI index will have a unique code in its LEI from digits 7-18 and the LEI length always remains the same.
Characters 19-20
The final two digits serve to check whether or not the legal entity number is compliant as outlined the ISO 17442 standard, as you can see in the sample LEI above. They are mostly for verification purposes.
The final two digits serve to check whether or not the legal entity number is compliant as outlined the ISO 17442 standard, as you can see in the sample LEI above. They are mostly for verification purposes.
The Legal Entity Identifier is a G20 endorsed globally verifiable unique identity code that consists of 20 numbers and digits. The LEI which is unique to each entity is located on the GLEIF database and contains basic entity information such as name, address and entity type (e.g Limited company, Fund, Trust etc). |
|
The LEI format may look long, and complex at a glance. However, as you can see when the LEI Code sample is broken down into its parts it is very digestible. The value of having such a standardised code will be massive. The LEI is also an ISO Standard. This means that it has been approved as an official standard by the International Organisation for Standardisation and the LEI code holds ISO 17442.
The ISO definition of the Legal Entity Identifier can be found on the ISO website here: ISO 17442 - Legal Entity Identifier |
The publicly available LEI data pool can be regarded as a global directory, which greatly enhances transparency in the global marketplace. This will have long term benefits in the areas of transparency, anti-money laundering, KYC processes and fraud detection.
"We believe that ultimately there should be one identity behind every business. Having an LEI will help to achieve this objective."
- Global Legal Entity Identifier Foundation (GLEIF)
The barrier for entry to obtaining an LEI is low. Applying for an LEI is a very simple process that only takes up to 10 minutes. 97% of applications at LEI Worldwide are accepted. To find out if you should get an LEI or if you need one please read our post on it here: Who needs an LEI?
Any entity which can be considered a legal entity may obtain one. This includes Limited Companies, Funds, Trusts, Charities, Associations, Government Bodies and Banks and in every country in the World.
LEI Worldwide are an Official LEI Registration Agent, you can obtain your LEI Code here today by clicking the button below or reading our post on how to apply for a Legal Entity Identifier.
Any entity which can be considered a legal entity may obtain one. This includes Limited Companies, Funds, Trusts, Charities, Associations, Government Bodies and Banks and in every country in the World.
LEI Worldwide are an Official LEI Registration Agent, you can obtain your LEI Code here today by clicking the button below or reading our post on how to apply for a Legal Entity Identifier.
