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Home EU RegulationsAML Since May 2020 InfoCert is officially a Legal Identity Identifiers (LEIs) Issuer
Legal Entities Identification

Since May 2020 InfoCert is officially a Legal Identity Identifiers (LEIs) Issuer

by InfoCert

On May 15, 2020, the accreditation process of InfoCert as LOU (Local Operating Unit) for the issuing of LEI (Legal Entity Identifier) codes was successfully completed.

The Board of Directors of the GLEIF (Global Legal Entity Identifier Foundation) recognised InfoCert as fully eligible to operate within the LEI Global System as Issuer of the above-mentioned codes.

The accreditation gives InfoCert the possibility to operate as LEI Issuer, not only in Italy but also in Spain and Luxembourg.

LEI CODES, WHAT THEY ARE AND WHAT BENEFITS THEY OFFER?

LEIs are codes based on the international standard ISO 17442. They are composed of 20 alphanumeric characters and their purpose is to allow the clear and univocal identification of legal persons involved in a financial transaction.

Each LEI code contains information regarding the ownership structure of the legal entity to which it is issued, answering the questions “who is who” and “who owns who”. The set of data associated with LEI codes, the list of which is freely accessible, can be considered as a large repository, which significantly increases transparency and digital trust in the global transaction market.

The FSB (Financial Stability Board) states that the adoption of LEIs meets “multiple financial stability objectives”, including better risk management for companies and a more accurate assessment of prudential risks at the micro and macroeconomic level.

Banks, for which clear and accurate identification of counterparties is essential, are increasingly using LEIs to identify new customers and to effectively respond to KYC (Know Your Customer) requirements.

THE ROLE OF INFOCERT AS LOU

LOUs, or LEI issuers, are organisations accredited by GLEIF and authorised to issue LEI codes to legal persons. supply registration, renewal and other services, and act as the primary interface for legal entities wishing to obtain an LEI.

A legal entity that wishes to obtain an LEI must supply accurate reference data, i.e. the publicly available information on legal entities identifiable with an LEI, to its LEI issuer. The reference data includes official name of a legal entity, its registered address, relationship information, which allows the identification of the direct and ultimate parents of a legal entity.

The LEI issuing organization must verify the reference data with the local Registration Authority and issue an LEI compliant with the LEI standard.

THE ROLE OF GLEIF IN THE GLOBAL LEI SYSTEM

GLEIF is a non-profit international organisation based in Basel, Switzerland. It was established by the Financial Stability Board in June 2014 with the aim of promoting the implementation and use of LEIs internationally.

Today, GLEIF focuses on further optimising the quality, reliability and usability of LEI system data, allowing global market players to benefit from the wealth of information available within the system.

The foundation is supported and supervised by the LEI Regulatory Oversight Committee, which represents public authorities from around the world who have come together to jointly promote transparency in global financial markets.

GLEIF is also the provider of the LEI Global Index, the only global online source providing open, standardised and high-quality reference data on legal entities.

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