If you would like to add an extra layer of security to your KYC process, start using the LEI search tool today. It is the perfect addition to any internal organisational process which involves identity checks. The tool is free to use and the data is global, reliable and up to date!
Below, we outline why you should start using it today, and how to make the most of it.
The global LEI system has innumerous benefits to the global economy. The Legal Entity Identifier provides unique, standardized data on companies trading all around the world. The most important feature of the LEI data is that it is stored in an easily accessible, public database that you can begin using, today!
The GLEIF search tool is not just used by regulators, or financial institutions for reporting and compliance obligations. The beauty of the LEI is that any company can easily integrate an LEI check as part of its KYC processes.
The beauty of the LEI is that your company can easily integrate an LEI check as part of its KYC processes, pretty much straight away.
With over 1.7 million entities on the LEI database, you can navigate the GLEIF search tool and discover valuable information about potential clients, investors or customers.
Now, when dealing with another company, checking if they have an LEI is a sure way to know they exist and are who they say they are.
In many instances, the LEI can provide an organizational structure or parent information. For example, by looking at the LEI of Alphabet Inc, you can easily see that it owns Google and the family tree and all subsidiary entities associated with the global corporation.
How can you begin using the LEI Search tool?
GLEIF have made freely accessible the LEI search tool. This tool allows you to search LEI data in depth using ‘Expert Mode’.
An LEI record will provide you with basic information on any given entity such as:
To begin your search visit the GLEIF Look Up tool (link at the bottom of this page). Think of a company you have in mind, or simply navigate the database freestyle to check it out.
If your initial search does not provide your desired result, try filtering by switching on the 'Expert Mode' button in the top right corner.
Using 'Expert Mode'
Use expert mode to conduct a search by combining multiple search filters. We suggest playing around with this for a while until you get the hang of it.
Expert Mode filters include the below (all can be used in combination):
To use a random example, we will search for Limited Companies in registered since 2019 in the USA, who have the word 'services' in their name.
Understanding LEI Status
You can also view the status of the LEI code. This will tell you whether the information contained within the record is likely to be valid or up to date. If the LEI code has not been renewed recently, it may contain inaccurate data.
ISSUED: The LEI is active, and the information on the LEI record has been updated within the last 12 months.
LAPSED: The LEI has expired and the data has not been renewed. It needs to be updated.
It is estimated that by adopting searches such as this, the global banking industry could save up to $2-4 Billion in KYC checks annually.
The LEI Search adds a quick, and reliable extra layer of security to your current KYC processes.
In summary, the LEI Search tool is a very reliable and useful database that can be introduced to your team in a matter of minutes. You can include the LEI as a requirement for customers to fill out on your forms for example. If they provide an LEI, and the data is accurate, you can have peace of mind knowing that they have accountability, are who they say they are and are a company that stand behind their brand.
"No LEI, No Trade"
If you have an LEI Code, we recommend that you maintain it. It should not Lapse or it could interfere with your ability to conduct business. If a potential investor sees that you have an expired LEI, it may discourage them from engaging in business with you. It could also result in your banking or financial institution blocking trades, or your regulator preventing the settlement of securities.
We are here to help...
LEI Search Tool Link
The GLEIF LEI checker is the official, fastest, & most accurate way to check on the current status of any LEI.
Global financial markets are in turmoil with the closing of businesses brought on by the COVID-19 crisis. Usually, a terrible situation such as this would inevitably lead to a severe economic downturn.
This is the case during and after this pandemic, moreover, we are now made confront another fact; global monetary policy over the last decade and how this effect by an economic downturn.
Since the Global Financial Crisis of 2008, central banks throughout the world such as the Federal Reserve, the European Central Bank (ECB) and the Bank of England utilised ever-increasing Quantitative Easing (QE) systems as a means to securing the the global economy against threats.
These systems brought about an upturn in the global money supply, a huge reduction in interest rates and protected financial institutions from the looming threat they would otherwise be facing due to becoming over-leveraged.
At a glance, the global economy recovered as businesses picked up the broken parts and began again, boosted by increased access to low interest rates and cheaper money.
At a policy level the central banks, reduced interest rates to almost zero. This resulted in basically disarming themselves of the weapons they would require as a means to protect against oncoming economic volatility.
Moreover, the problem that was caused by over-leveraging financial institutions led to the 2008 disaster not only remained unpacked, but was enhanced.
The main problem which remained underlying therefore grew in the background, awaiting a trigger to unleash its wrath.
That trigger is COVID-19.
COVID-19, also known as Coronavirus, is an infectious disease caused by a new type of corona virus originating in animals. The disease causes respiratory illness (like the flu) with symptoms such as a cough, fever, and in more severe cases, difficulty breathing.
At present, the world is still reeling from the direct effects of the last economic crisis. The real economy and has not yet come to terms with the economic storm that will be unleashed hereafter.
There is however, a silver lining.
Following the collapse of Lehman Bros in 2008, the G20 initiated a global ISO standard that increased transparency in global financial markets; the Legal Entity Identifier (LEI).
This identifier serves as a passport number for companies operating internationally, identifying the exact legal entity and its ownership structure, thus avoiding the confusion that reigned in 2008 when financial institutions had difficulty ascertaining their counterparty exposure in a time of economic volatility.
Regulators throughout the world have recognised the utility of the LEI as the pre-eminent identifier and a multitude of regulatory reporting mechanisms throughout the world now require an LEI. Indeed under MiFID II, the EU mandate has been described as "No LEI, No Trade".
Today, LEIs are also being matched with International Securities Identification Numbers (ISINs), rendering increased transparency for market participants by identifying the financial instruments issued by individual companies.
The world is currently facing unprecedented challenges. While peoples' health must be at the forefront of these, the financial well-being of the global system remains a critical priority.
At this time, the real utility of the LEI in delivering transparency to opaque markets will undoubtedly come to the fore.
Order your LEI now or contact us today to find out more.
There have been a number of developments across the global financial landscape in terms of regulations in recent months. With the dawn of a new decade, brings about a new era in terms financial regulations and compliance in the global market.
Below are a few of the most recent and notable developments watch as we move into Spring 2020.
Reserve Bank of India (RBI) LEI Requirements
RBI LEI Deadline - 31st March 2020
The RBI has now mandated that eligible participants are required to obtain Legal Entity Identifier by March 31, 2020.
In case of failure to obtain LEI within due date, the Bank shall not honour any kind of banking transactions of defaulting eligible participant.
This requirement refers to having an LEI in its ACTIVE state. Therefore, if you already have an LEI, you can ensure it never expires by subscribing to automatic renewals here.
LEI Requirement for SFTR Reporting
SFTR LEI Deadline - 13th April 2020
There has been a huge demand for measures to be taken to reduce risk and increase compliance requirements in this area. This stems from the need of transparency from the global financial crisis.
Market participants will be required to provide an LEI in their reports from 13th April 2020.
Currently the European Securities and Markets Authority (ESMA) is allowing a grace period of 12 months for third country issuers, but for those in the EU must ensure their LEIs are active by April 13th.
BE-10A LEI Requirement
LEI Requirement for HMDA Reporting
The LEI is a G20 endorsed globally verifiable unique identity code. The LEI exists to confirm the identity, and existence of a company and its structure on an international level.
The objective of the LEI system is to deliver transparency to the global financial system, although the benefits are far greater. The LEI improves KYC workflows and increases trust in transactions on a global scale and is even predicted to save the banking industry between 2-4 Billion USD annually!
LEI Worldwide are currently managing a large portfolio of client LEIs, including some big name brands. Darragh Hayes, Director at LEI Worldwide stated;
We help by providing these usually large corporations with a single LEI management solution.
This allows the whole organisation to use LEI Worldwide as a single point of contact to monitor, renew or access their LEI data, without the use of passwords or multiple accounts."
Thanks for Registering and Renewing our LEIs. We are extremely satisfied with your service and response to our queries.
Q: Why is the LEI important, and why should I get one?
Currently, LEIs are required by all firms conducting transactions within the global financial system. However, the benefits of having an LEI are greater than the necessity and that is why many companies are applying for their LEI codes in greater numbers than ever.
Immediate benefits include providing you with an instant credibility boost, and an internationally recognised identity card. The LEI is the most modern and trusted way to protect your online identity and build trust in your company. You can also benefit from the added layer of identity security and prevent any such related errors.
It is the mission of LEI Worldwide to facilitate this global mass adoption to the Legal Entity Identifier, by making them as accessible as possible to entities all over the world." – Robert O’ Reilly, Senior Partner, LEI Worldwide
Obtaining a Legal Entity Identifier is a very simple process. LEI Worldwide provide the platform to easily:
• Register a new LEI for a legal entity
• Renew an existing LEI
• Transfer an existing LEI to LEI Worldwide for free
• Make bulk orders, renewals or transfers in one go
• Register an LEI for up to 3 or 5 years which includes large discounts
• LEI Reselling: If you are interested in re-selling LEIs to your client base LEI Worldwide can set you up with the architecture to do so on your own website or to do so on the RapidLEI platform.
To find out more simply contact email@example.com
Article by: TechCompanyNews.com
If you are are currently managing or own a fund or a trust, you will more than likely be required to obtain a Legal Entity Identifier (LEI).
A Legal Entity Identifier (LEI) is a 20 digit code that is unique to a legal entity and provides basic information about the entity such as name, address and entity type e.g Limited Company. We explore this further in our recent post What is the Legal Entity Identifier?
LEIs are required by any legal entity that is involved with financial transactions or operating within today's financial system. This applies in particular with regard the EU and the US. There are a number of mandates currently in existence which state "no LEI, no trade" meaning both reporting parties and traders require an LEI such as Mifid II. To see a comprehensive outline of the regulatory use of the LEI please see our recent post on the matter.
Funds and Trusts are examples of legal entities which generally require an LEI for reporting and regulatory purposes.
LEIs for Funds
LEIs for Trusts
When it comes to applying for the LEI you may be requested to provide proof of existence by providing a deed, unless it is a discretionary trust. To find out what other documents may be requested please see our guide to LEI documentation here.
In order to apply for a Legal Entity Identifier please click here: Register New LEI