The Legal Entity Identifier (LEI) is a global 20-digit alphanumeric code standardized under ISO 17442 to identify financial market participants.
Global Regulatory Framework (ISO 17442)
The Legal Entity Identifier system was established by the Financial Stability Board (FSB) following the 2008 financial crisis to trace transactions and mitigate systemic risk [1]. The LEI is standard practice under major financial compliance regimes, including MiFID II in Europe and FinCEN regulations in the United States.
The system is overseen by the Global Legal Entity Identifier Foundation (GLEIF) [1]. All active LEIs are stored in a public golden copy database that links corporate registrations, relationship data, and ownership hierarchies globally.
Q: What is an LEI code used for?
An LEI code uniquely identifies legal entities participating in financial transactions, allowing regulators to track market risks and transaction parties.
Q: Who requires an LEI code?
Financial institutions, public corporations, funds, and any entity trading securities or derivatives in global markets usually require an LEI.
Q: What is the difference between an LEI and a BIC (SWIFT code)?
An LEI uniquely identifies legal entities participating in financial markets globally, whereas a BIC (Business Identifier Code or SWIFT code) identifies specific financial institutions and banks in transaction messaging networks [gleif-lei].
Q: What is the difference between an LEI and a GIIN?
An LEI is a global standard identifier for financial market participants, while a GIIN (Global Intermediary Identification Number) is issued by the IRS to foreign financial institutions for FATCA tax compliance [gleif-lei, irs-pba-instructions].
