Understand why your company should register an LEI and how this unique identifier can strengthen your company’s position in the international financial landscape.
Understand why your company should register an LEI and how this unique identifier can strengthen your company’s position in the international financial landscape.
What is an LEI code?
A Legal Entity Identifier (LEI) is a unique 20-digit code assigned to legal entities that participate in financial transactions and form an important part of the global financial system.
The LEI acts as a universal identifier that ensures clarity and transparency in financial transactions by accurately identifying the legal entities involved.
Not sure who needs an LEI code? Read more here.
5 good reasons to register an LEI code
1. Compliance with regulatory requirements
An LEI is essential for compliance with international financial regulations. Without it, your business could face serious consequences for non-compliance with LEI code requirements.
2. Identification of the company’s legal entity
An LEI code is essential for establishing the legal identity of a company.
- The LEI code offers a clear and unambiguous identification of legal entities
- It clarifies the legal status of the entity
- It facilitates the discovery and clarification of ownership.
3. Improved transparency in financial transactions
LEIs have a crucial role in promoting transparency and control within financial markets. They are an effective tool in the fight against financial crime, such as money laundering and tax evasion, helping to build greater confidence among investors and other market participants.
- Facilitates monitoring of financial transactions
- Provides reliable and accurate information on legal entities to combat fraud
- Assists in the identification and deterrence of illegal or suspicious activity
4. Strengthening company reputation
An LEI can act as a symbol of integrity and accountability. It shows that the company operates in compliance with international and local legal requirements and monetary standards.
The acquisition of an LEI can also mean improved investor confidence. With the increased transparency and traceability that the LEI brings, investors can feel more confident that their investments are in safe hands.
5. Access to global financial markets
An LEI is essential for accessing global financial markets. Global markets require companies to have a valid LEI in order to participate in financial transactions and trade in securities.
Registering an LEI is therefore an important step for any company that wants to strengthen its position in the international financial landscape. It is not only a matter of complying with regulatory requirements, but also of demonstrating transparency, integrity and accountability.
How to register an LEI code
Step 1: Choose an LEI provider
When choosing an LEI provider, look for one that offers a simple, fast and reliable LEI registration service. Choose the one that offers transparent pricing with no hidden fees and has customer support.
Step 2: Fill out the application form
Ensuring a properly completed LEI application form is done by providing accurate and up-to-date information about the company. This information may include the company’s legal name, addresses and other necessary data that correctly links the company to its legal entity.
Step 3: Verification of information
After submitting the application form, the LEI provider will review and verify the information provided. This may include a check of the company’s legal documents and other relevant documents to ensure the accuracy of the information.
Step 4: Payment
Once the application has been confirmed and approved, you will be asked to make payment for the LEI registration. Be aware that the price may vary depending on the LEI provider, so make sure you choose one that offers reasonable prices.
Step 5: Receiving the LEI code
After making the payment, you will receive your LEI code after some time.
Keep in mind that an LEI code needs to be updated annually to ensure it remains valid and up-to-date.
