The Global Legal Entity Identifier Foundation (GLEIF) announced that the Legal Entity Identifier (LEI) has been endorsed by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) in its report: ‘Harmonized ISO 20022 data requirements for enhancing cross-border payments‘, alongside the Wolfsberg Group’s updated ‘Payment Transparency Standards’.
CPMI’s ISO 20022 data requirements establish standardized messaging data for cross-border payments, endorsing the LEI as equivalent to BIC. The LEI is supported by global industry stakeholders and recognized for its unique identification, international standard, and regulatory oversight.
These requirements propose using LEI and/or BIC to identify financial institutions in cross-border payments, improving identification accuracy. The Wolfsberg Group has also updated its Payment Transparency Standards, emphasizing the use of LEI for payment transparency. The Wolfsberg Group is an association of 12 global banks which aims to develop frameworks and guidance for the management of financial crime risks.
Industry advocacy for the inclusion of the LEI within ISO 20022 payment messages promises to support faster, cheaper, more transparent and inclusive cross-border transactions.
Stephan Wolf, CEO of GLEIF, said in a statement: “Broad industry consensus advocating for the inclusion of the LEI within ISO 20022 payment messages is yet another strong endorsement of the LEI, and further underscores its terrific potential in the cross-border payments space. When the LEI is added as a data attribute in payment messages, any originator or beneficiary legal entity can be precisely, instantly, and automatically identified across borders and jurisdictions. This promises myriad benefits as payment market infrastructures across the world migrate to ISO 20022, helping to enable faster, cheaper, more transparent and inclusive cross-border transactions, while maintaining their safety and security, in support of the G20 roadmap.”