What is an LEI code?
A Legal Entity Identifier (LEI) is a unique 20-character alphanumeric code defined by the ISO 17442 standard and used globally to identify legal entities such as companies, funds, and organizations.
Each LEI is issued once per legal entity and remains unique to that entity throughout its lifetime. The LEI does not replace national registration numbers issued by trade or company registers; instead, it complements them by linking to verified reference data. This enables clear, consistent, and reliable identification of legal entities involved in financial transactions, regulatory reporting, and other official interactions.
What is the purpose of LEIs in financial transactions?
The structure of an LEI Code (20-character alphanumeric)
Each LEI includes reference information about a legal entity’s ownership structure, making it possible to answer the questions “who is who” and “who owns whom.” Through publicly available LEI data, the Global LEI System functions as a worldwide directory that increases transparency and trust in global markets.
An LEI consists of 20 characters. The first four characters identify the LEI Issuing Organization (LOU). Characters 5–18 are unique to the legal entity itself, while the final two characters are check digits defined by the ISO 17442 standard and are used to validate the accuracy of the LEI.
What roles do GLEIF and Local Operating Units (LOUs) play in the LEI system?
The Global Legal Entity Identifier (LEI) System is a worldwide framework made up of accredited LEI Issuers, known as Local Operating Units (LOUs), operating under agreements with the Global Legal Entity Identifier Foundation (GLEIF).
Established in June 2014, GLEIF is a not-for-profit organization responsible for overseeing and maintaining the integrity of the Global LEI System. Its role is to ensure that LEIs are issued and managed consistently and reliably across the globe. GLEIF operates under the supervision of the Regulatory Oversight Committee, which includes representatives from public authorities worldwide.
LEI Issuers (LOUs) are the organizations authorized to issue and manage LEIs for legal entities participating in financial transactions.
