The Legal Entity Identifier (L.E.I.) system, originally developed to enhance transparency in global financial markets, has evolved into a powerful tool extending beyond regulatory compliance. It is now a key enabler of digital identity, financial inclusion, risk management, and supply chain finance.
Antonia Christoforidi, Head of Audit Services & Public Affairs at GLEIF has recently engaged with us to provide some insights on this topic.
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If you prefer to listen about this topic instead of reading, check our podcast, episode #40.
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Who is GLEIF?
GLEIF or the Global Legal Entity Identifier Foundation is a not-for-profit organization, headquartered in Switzerland, and was founded in 2014 by the Financial Stability Board.
At the core of its mission, GLEIF oversees and supports the implementation of the ISO standard 17442, the the Legal Entity Identifier, or LEI.
GLEIF is overseen by the Regulatory Oversight Committee, or ROC, made up of over 70 financial market regulators and 19 observers from more than 50 countries.
Governance-wise, GLEIF is guided by a Board of 18 independent directors, ensuring that its work remains globally oriented and impartial.
GLEIF operates within a three-tier structure known as the Global LEI System, which includes:
- The Regulatory Oversight Committee, or ROC;
- GLEIF itself, which oversees the system, ensuring data quality and compliance with standards;
- And the Local Operating Units (LOUs), which are accredited partners authorized to issue LEIs directly to legal entities.
As of now, GLEIF partners with 38 accredited LOUs who have issued appr. 3 million LEIs.
In short, GLEIF plays a key role in building trust and transparency in global finance by making sure that every organization involved in financial transactions can be uniquely and reliably identified.
What is the L.E.I.?
The LEI is a 20-digit, alpha-numeric code that provides a clear, standardized way to uniquely identify legal entities participating in transactions. Think of it as a universal ID for companies, financial institutions, or organizations engaged in the global economy.
The LEI is built on an internationally recognized standard - ISO 17442 - and is designed to be open, reliable, globally interoperable, and digitally friendly. It helps ensure that no matter where in the world a legal entity operates, it can be identified in a consistent and trustworthy way.
But the LEI isn’t just a number. It’s linked to a set of key reference data about the entity, such as:
- Its legal name
- Legal form
- Headquarters address
- And even its parent or subsidiary relationships
This information is updated regularly, making the LEI a dynamic and current source of legal entity videntity data.
What’s more, accessing LEI data is easy. It’s freely available via:
- GLEIF’s website search
- Full data file downloads
- And an open API for digital integration.
In summary, the LEI is a powerful tool for increasing transparency and trust in global markets. It's open, machine-readable, and helps regulators, businesses, and financial institutions make informed decisions about who they’re dealing with anywhere in the world.
Where does the LEI stand in terms of worldwide adoption?
The momentum behind LEI adoption is strong and growing. Regulators across key markets, from the EU and North America to Asia-Pacific and beyond, are embedding the LEI into their supervisory frameworks.
Let’s start with the EU which currently leads with the most comprehensive implementation. The LEI is mandated across a wide range of regulatory frameworks, including MiFID II, Solvency II, AIFMD (Alternative Investment Fund Managers Directive), the Market Abuse Regulation, and more. This shows how deeply embedded the LEI has become in core capital markets and financial stability frameworks.
In the UK, the Bank of England introduced the LEI into Clearing House Automated Payment System (CHAPS) payment messages as part of the ISO 20022 standard in February 2023 and later mandated its usage for payments involving transfers of funds between Financial Institutions.
Moving to Asia, India is mandating LEIs not only in derivatives markets, but also for corporate borrowing and large-value payments demonstrating how the LEI is scaling beyond capital markets into broader financial infrastructure.
In China, the customs authorities now require LEIs for imports from 29 countries.
We also see adoption across Australia, Japan, South Africa, Mexico, Chile and Canada - primarily in over-the-counter (OTC) derivatives helping align local financial practices with global standards.
In summary, this global map shows that the LEI is a proven, globally recognised tool for regulatory transparency and market efficiency.
How does the EU Leverage the LEI for Counterparty Identification?
We are currently seeing the EU legislative framework increasingly laying the groundwork for using the LEI as a key tool to enhance trust, security, and efficiency in payments across Europe.
Let’s start with the Instant Payments Regulation (IPR).
Here, the LEI is used to support payee confirmation and improve IBAN–Account Name matching. This helps ensure that the recipient of a payment is exactly who they claim to be. Payment Service Providers, or PSPs, may allow users to rely on the LEI when initiating credit transfers, adding an additional layer of trust in the payment chain.
Next, the Anti-Money Laundering Regulation (AMLR) introduces the LEI as a reference point to assist in customer due diligence during the onboarding of legal entities. This supports compliance and streamlines the KYC process by using a globally consistent identifier.
Then there’s the recast Transfer of Funds Regulation (TFR).
This legislation leverages the LEI to identify both originators and beneficiaries in fund transfers, where available
But the LEI is included in several pieces of legislation across the EU.
For example, it is also included in the European Single Access Point (ESAP). This initiative centralizes access to financial and sustainability-related information across the EU, and the LEI is referenced as a key identifier for entities submitting data, ensuring clarity and consistency across disclosures.
In the field of sustainable finance, the Sustainable Finance Disclosure Regulation (SFDR) requires LEIs in ESG-related disclosures. This supports data standardization and comparability across environmental, social, and governance reporting.
And finally, let’s not forget MiCA - the Markets in Crypto-Assets Regulation. Under this fraemwork crypto-asset service providers (CASPs) operating within or servicing customers in the EU are now required to provide, when available, an LEI to obtain authorization under MiCA.
What are the specific takeaways for Business Information Providers? How can they leverage the LEI in their services, and what kind of value does it unlock for them and their clients?
For Business Information Providers, the LEI represents a powerful opportunity to deliver more accurate, efficient, and value-added services.
When the LEI is integrated as a data attribute, whether in a payment message, an onboarding workflow, or even an ERP system, it allows any legal entity involved in a transaction, such as the originator, beneficiary, or counterparty, to be precisely, instantly, and automatically identified across borders.
This level of trusted, structured data means that rather than manually verifying counterparty information, you can retrieve and confirm it in real time via the GLEIF API, which is available free of charge. That reduces manual effort, minimizes errors, and significantly accelerates onboarding, due diligence, and compliance processes.
Finally, what are your recommendations for Business Information Providers?
First, we encourage you to test integrating the LEI into your existing services and platforms. Try using the GLEIF API to enrich your data, especially in areas like Know Your Business (KYB), supplier onboarding, and risk scoring.
Second, talk to your clients. Are they fully using LEIs to streamline their due diligence and counterparty risk workflows? If not, that’s a service opportunity. You can help them uncover value, whether by identifying gaps in LEI usage or building LEI-enriched analytics into your offerings.
For inspiration, I recommend checking out the Global Digital Finance briefing, created with GLEIF. It outlines how the LEI can reduce the costs of KYC and KYB processes and open new commercial use cases.
And finally - consider joining GLEIF’s Partner Program. It’s a great way to stay informed about new developments, connect with peers, and help shape advance trusted organizational identity.
Source: FEBIS/GLEIF
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