The Global Legal Entity Identifier Foundation (GLEIF) announced that the Commonwealth Bank of Australia (CBA) has become the latest financial institution to be approved as a validation agent (VA) in the Global Legal Entity Identifier (LEI) System. CBA is the first VA based in Australia.
Key local initiatives shaping LEI adoption include updated over-the-counter (OTC) derivative transaction reporting rules from the Australian Securities and Investments Commission (ASIC). The regulation — which comes into force in October 2024 —mandates the LEI as the only permitted entity identifier for counterparty identification, phasing out the use of the AVID code and Business Identifier Code (BIC). This will increase alignment with global market practices to reduce costs and complexity, while helping to address the challenge of identifying smaller, non-financial counterparties.
In its VA role, CBA is part of broader industry efforts to harmonize the use of identifiers to promote greater transparency and contribute to the fight against financial crime across the global economy. Strong market traction stems from the support of key stakeholders advocating for the inclusion of the LEI within ISO 20022 payment messages. This includes the Bank for International Settlements’ Committee on Payments and Market Infrastructures’ (CPMI) ‘Harmonized ISO 20022 data requirements for enhancing cross-border payments’, alongside the Wolfsberg Group’s updated ‘Payment Transparency Standards’.
Stephan Wolf, CEO of GLEIF, said in a statement: “The continued expansion of the validation agent network further demonstrates the value derived for both the agent organization and their clients, helping to deliver trust with increased simplicity, convenience, and expediency. And with industry momentum for the LEI gathering pace across the globe, GLEIF fully endorses and welcomes CBA’s commitment to proactively support its clients in getting ahead of the LEI adoption curve.”
The number of Validation Agents globally increased to 15, with the network now spanning Africa, Australia, China, Europe, India, the Middle East, and North America.