The Global Legal Entity Identifier Foundation (GLEIF) announced that BOCOM Fintech, a Shanghai-based subsidiary of the G-SIB designated Bank of Communications (BOCOM), is approved as the latest Validation Agent (VA) in the Global LEI System. The approval follows support from the Beijing National Institute of Financial Standardization (NIFS).
BOCOM Fintech’s VA status represents growing LEI adoption in China and the Asia-Pacific (APAC) region. The fintech arm will leverage the LEI to streamline cross-border identification, simplify Know Your Customer (KYC) processes and document requirements for offshore businesses, expedite identity verification, reduce compliance risks, and enhance the overall customer experience.
BOCOM Fintech is also actively exploring new applications of the LEI and its digital counterpart, the verifiable LEI (vLEI). These include ‘one single system’ cross-border trade financing solutions and cross-border e-commerce compliance solutions, which aim to promote paperless trade while ensuring transparency in cross-border transactions.
Leveraging its strategic location in Shanghai’s Lin-gang Special Area, BOCOM Fintech will continue to advocate for the LEI as an ‘international passport’ for legal entities, providing substantial benefits for local businesses expanding globally and foreign enterprises entering the Chinese market.
Shanghai local authorities recently introduced a comprehensive package of 50 measures to bolster the local application of the LEI. These measures encourage companies in the Lin-gang Special Area to use the LEI for cross-border verification and key trade documents, such as electronic bills of lading, electronic warehouse receipts, and electronic invoices.
Tang Yi, President of BOCOM Fintech, said in a statement: “By becoming a Validation Agent in the Global LEI System, we are better positioned as a fintech company and aim to contribute more effectively to China’s economic opening-up. We are firmly committed to exploring innovative applications of the LEI in anti-money laundering (AML), maritime trade, and cross-border e-commerce, thus promoting digital finance and economic development.”
Zhou Xichong, executive director and general manager of NIFS, said in a statement: “The Global LEI System provides a robust foundation for advancing global digital finance by standardizing data formats. As a new Validation Agent, BOCOM Fintech will play a pivotal role in promoting the adoption of LEIs in China. NIFS will collaborate closely with GLEIF and BOCOM Fintech to explore LEI and vLEI applications in cross-border payments, international trade, and counterparty identification and verification. This collaboration aims to foster international cooperation in financial regulation and strengthen global economic risk identification.”
Alexandre Kech, CEO of GLEIF, said in a statement: “This step represents the strong participation and support to foster trust and transparency in the global economy. By exploring new LEI and vLEI applications, BOCOM Fintech will contribute to building a new global ecosystem for organizational digital identity, bringing tangible benefits to local businesses, enhancing regional integration, and promoting economic development.”