LEIpapa – Blog

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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Increase of value added tax as of 1 July 2025

LEIpapa — Sun, 29 Jun 2025 00:00:00 +0000

Dear Valued Customers,

As of July 1, 2025, a new value-added tax rate of 24% will take effect, replacing the current rate of 22%. This is a regulatory change imposed by the state.

The amount of LEIpapa service fees, which are subject to value-added tax, will increase by the amount of the value-added tax rate increase. Our price list is available for viewing on our website.

The price increase will apply to the following customer groups:

Private individuals from the EU – VAT is applicable, so total service fees will increase accordingly.
Estonian business customers (B2B) – VAT is applicable, and the total service fees will reflect the new 24% rate.
EU business customers (B2B) who are not VAT registered – VAT will be charged, and prices will increase.
EU business customers (B2B) who are VAT registered and provide a valid VAT number – No VAT is charged under the reverse charge mechanism, so that prices will remain unchanged.

More information about the change of the value-added tax rate is available on the website of the Estonian Tax and Customs Board.

Should you have any questions about these changes, please don’t hesitate to reach out.

Thank you for your continued support.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured image by Kaboompics.com

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Updates to Jurisdictional Surcharges from January 1st, 2025

LEIpapa — Wed, 01 Jan 2025 00:00:00 +0000

Dear Valued Customers,

As part of the required LEI application validation process, our vetting team must confirm application details against various business registries. This is an auditable activity mandated by the GLEIF.

In certain jurisdictions we face changing costs to perform this activity. Our LOU is reviewing these costs on a quarterly basis and where necessary needs to make changes to the surcharges. Please note, our LOU does not profit from these surcharges, and always attempts to find the lowest possible surcharge cost.

The following surcharge revision will go into effect from January 1st, 2025 and apply to all orders placed from the mentioned date.

Country	Current	New
Hong Kong (HK)	0.00	€3.00
Japan (JP)	0.00	€2.00
Malaysia (MY)	0.00	€4.00
Monaco (MC)	0.00	€15.00
Netherlands (NL)	0.00	€3.00
Canada (CA)	€5.00	€9.00

Find the full current jurisdictional surcharges on the relevant Jurisdictional Surcharges section of the pricing page.

Should you have any questions about these changes, please don’t hesitate to reach out.

Thank you for your continued support.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured image by Ann H.

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Participation in the Annual Lietuvos Bankas Economics Conference 2024

LEIpapa — Tue, 17 Dec 2024 00:00:00 +0000

Participation in the Annual Lietuvos Bankas Economics Conference: Building Resilience Amid Global Geopolitical Shifts

The year 2025 marks a significant milestone—the 10th anniversary of the euro’s introduction in Lithuania. To commemorate this occasion, the Bank of Lithuania (Lietuvos bankas) dedicated its Annual Economics Conference to the theme: “Pillars of Resilience Amid Global Geopolitical Shifts.”

The conference brought together distinguished leaders, policymakers, and experts to address the critical challenges facing Europe today, including the impact of geopolitical fragmentation, the need for strategic autonomy, and the importance of enhancing industrial capacity.

Key Highlights of the Conference

The event featured a lineup of influential speakers, including:

H.E. Gitanas Nausėda, President of the Republic of Lithuania
Gediminas Šimkus, Chair of the Board of Lietuvos bankas
Christine Lagarde, President of the European Central Bank (ECB)

Each speaker emphasized the pressing need for economic resilience and collaboration in navigating the complexities of today’s global geopolitical landscape.

LEIpapa’s Participation

We are proud to share that Makhmud Efendi, a founder and a Board Member of LEIpapa OÜ, actively participated in the conference. His presence underscored LEIpapa’s commitment to understanding and contributing to Europe’s economic resilience and strategic growth.

Reflecting on his participation, Makhmud remarked:

Attending the Lietuvos Bankas Annual Economics Conference was an insightful experience and a powerful platform for meaningful dialogue. The discussions on economic resilience, European integration, and strategic autonomy provided valuable perspectives. Moreover, the event facilitated numerous connections with leaders and experts who share a vision for a stronger and more unified Europe.

Key Takeaways

The conference served as a reminder of the importance of cooperation, foresight, and adaptability in building a resilient economic future. For LEIpapa, participation in such high-level discussions strengthens our understanding of global trends and equips us to better navigate the ever-changing economic landscape.

As Europe looks ahead, events like these remain vital in shaping a sustainable and resilient future for businesses, policymakers, and societies alike.

For more information on the Conference, see Lietuvos bankas’ website.

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Policy Update for Renewal of LEIs for Inactive or Dissolved Entities.

LEIpapa — Fri, 06 Dec 2024 00:00:00 +0000

Dear LEI applicants,

The LEIpapa team would like to bring to your attention an important policy update regarding LEI renewals for entities found to be inactive or dissolved on official registries.

Our Local Operational Unit encounters an increasing number of cases where renewal requests are submitted for entities that, upon verification, are discovered to be no longer active. While we understand that such situations may occur unintentionally, it’s important to note that checking and verifying registry data involves both time and cost.

As a result, moving forward:

Renewal Process: If a renewal request is submitted and we find the entity to be inactive, dissolved, or otherwise no longer in good standing on the registry, we will proceed with the renewal and apply the relevant charge.

No Refunds: Refunds will not be issued in these cases, as the service and associated work have already been carried out.

We strongly recommend that you, as an LEI applicant, verify the entity’s current status on the relevant registry to ensure it is still active and trading before submitting a renewal request. Instead of renewing the LEI, you should initiate a data quality amendment with the vetting team.

We appreciate your understanding and cooperation as we work together to maintain the efficiency and integrity of LEI services and ensure the required data quality standards within the Global LEI System (GLEIS).

Should you have any questions or wish to discuss this policy further, please do not hesitate to contact us. The relevant updates have been added to our Terms of Service.

Thank you for your continued support.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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Is the LEI Code Mandatory in India? Regulatory Requirements.

LEIpapa — Sat, 12 Oct 2024 00:00:00 +0000

In India, the LEI code is mandatory for a broad range of companies engaged in financial transactions, making it essential for businesses to comply. The primary purpose of the LEI is to increase transparency in the financial market and facilitate the identification of participants in global transactions.

ℹ️

You can read more about an LEI code and its necessity here.

Is the LEI Code Mandatory for All Companies in India?

The following types of companies are required to have an LEI code in India:

Financial Institutions and Market Participants

Banks and Non-Banking Financial Companies (NBFCs) involved in derivatives, currency operations, securities, and other financial products.
Insurance companies participating in financial transactions.

Companies Engaged in Capital Market Operations

All legal entities involved in transactions on stock markets (such as stocks, bonds, futures, and options) and derivatives markets.
Companies trading on exchanges must have an LEI code for all transactions exceeding certain thresholds.

Companies Involved in Cross-Border Transactions

Companies conducting cross-currency transactions or engaging in international financial operations must have an LEI code.
For instance, all large companies making foreign currency transactions exceeding 50 million Indian rupees per day are required to have an LEI code.

Participants in Payment Systems

Organizations participating in large payment systems, such as RTGS (Real-Time Gross Settlement), must register and obtain an LEI code for identification purposes.

Corporate and Government Companies

Large corporate and government organizations conducting significant financial transactions through the Reserve Bank of India (RBI) are required to have an LEI code.

Is the LEI Code Mandatory in India? In Which Cases and Transaction Types?

The LEI code is mandatory in India for the following transaction types:

Trading in derivatives on organized and over-the-counter markets.
Interacting with Indian banks for credit operations and participating in their transactions.
When companies engage in international financial operations or foreign investments.

Regulatory Requirements for LEI Code in India

The Reserve Bank of India (RBI) has introduced mandatory LEI code requirements for:

Participants in the currency market since 2017.
All large corporate borrowers (loans and credit lines exceeding 5 billion Indian rupees, approximately 7 million USD).
Participants in international cross-border transactions and large payment systems.

How do you obtain a LEI Code in India?

You can obtain an LEI code in India through accredited operators and official registration agents, such as LEIpapa.

The process involves submitting an application with the company’s basic registration details, confirming legal status, and paying the registration fee.

Conclusion

The LEI code is mandatory for a wide range of companies in India that engage in financial transactions, especially those involving large payments, international trade, or financial derivatives. Companies without an active LEI code may face restrictions on access to financial services and potential penalties from regulators in such cases.

FAQ

What is Stock Market?

The stock market is an organized system where the buying and selling of securities such as stocks, bonds, derivatives (futures, options), and other financial assets occur. The main goal of the stock market is to facilitate an efficient exchange of capital between companies in need of financing and investors who seek to invest their funds and earn a profit.

What is Derivatives Market?

The derivatives market (or the market for derivative financial instruments) is a financial market where derivatives are traded. Derivatives are contracts whose value depends on the price of an underlying asset, such as stocks, bonds, commodities (e.g., oil, gold), currencies, indices, or other financial instruments.

What is Reserve Bank of India (RBA) and its functions?

According to the RBA’s website, The Reserve Bank of India was established on April 1, 1935 following the provisions of the Reserve Bank of India Act, 1934. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is wholly owned by the Government of India.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as “to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.”

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

]]>

Important Update on LEI Pricing – Effective September 30, 2024

LEIpapa — Fri, 20 Sep 2024 11:02:11 +0000

Dear Valued Customers,

We inform you about an upcoming LEI pricing adjustment effective September 30th, 2024.

Over the past three years, we’ve worked hard to stabilize our prices despite rising compliance, technology, and administration operational costs. However, due to continued increases in these areas, we need to update our pricing to ensure we can maintain the high-quality service you expect from LEIpapa.

Starting September 30th, 2024, the new pricing will apply to LEI issuance, LEI renewal, and LEI transfer fees:

Active Period	LEI fee	Discount	Saving
1 year	€59
2 years	€114	3%	€4
3 years	€165	7%	€12
4 years	€212	11%	€24
5 years	€250	15%	€45

We greatly appreciate your partnership and understanding as we make this necessary change. Our commitment remains to provide you with the best service possible.

If you have any questions, please don’t hesitate to reach out.

Thank you for your continued support.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured image by Ann H.

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GLEIF Data Quality Reports August 2024

LEIpapa — Wed, 11 Sep 2024 16:00:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

61%

LEI Issuers Achieving Maturity Level 2
🟢 +8% compared to the previous month

14 days

Average Days to Close a Challenge
🟢 -18 days compared to the previous month

Highlights

The Total Data Quality Score for August remained outstanding at 99.99%, demonstrating consistent excellence in performance. This success was further underscored by a significant decrease in check failures, which dropped to 129 by the month’s end.

In addition, more LEI issuers achieved Expected and Excellent Data Quality compared to the previous period. The Average Days to Close a Challenge was also significantly reduced to 14 days, reflecting a more efficient and streamlined resolution process.

This summary is based on the GLEIF Data Quality Report for August 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for August 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global Legal Entity Identifier Foundation (GLEIF) meticulously compiles and releases a comprehensive suite of data quality reports every month. These reports are pivotal in assessing and demonstrating the overall integrity and accuracy of data maintained within the Global Legal Entity Identifier (LEI) System. The two principal categories of these reports are:

The Global LEI Data Quality Report

This report is instrumental in showcasing the aggregate level of data quality maintained across the entire Global LEI System. It provides a macro-level view of data integrity and is essential for stakeholders who rely on this data for various financial, regulatory, and business purposes.

The Global LEI Data Quality Report for August 2024 is readily available for download in PDF format.

Additionally, it is noteworthy that LEIpapa is a recognized official LEI registration Agent of Ubisecure RapidLEI. In line with this association, the report specific to RapidLEI’s performance and data quality achievements is also made available, ensuring a comprehensive understanding of RapidLEI’s contributions to the overall LEI system.

Ubisecure RapidLEI LEI Data Quality Report

In contrast to the global reports, this is a more focused analysis that delves into the data quality levels achieved by the individual LEI issuing organization Ubisecure RapidLEI. It offers a granular view of the issuer’s performance, ensuring transparency and accountability in the management of LEI data.

Ubisecure Oy (RapidLEI) LEI Data Quality Report August 2024 download in PDF format

Links to LEIprofile

Links to LEIpapa Web App

LEI 506700GE1G29325QX363
LEIpapa

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

LEI 529900T8BM49AURSDO55
LEIpapa

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Photo by Tima Miroshnichenko

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GLEIF Data Quality Reports July 2024

LEIpapa — Wed, 07 Aug 2024 15:35:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

53%

LEI Issuers Achieving Maturity Level 2
🟢 +3% compared to the previous month

32 days

Average Days to Close a Challenge
🟢 -97 days compared to the previous month

Highlights

In July, the Total Data Quality Score remained consistently high at 99.99%, demonstrating an ongoing commitment to data quality. There was a notable improvement among LEI issuers, with all issuers meeting the Required Data Quality standards and 53% achieving Expected Data Quality.

Additionally, the number of check failures decreased to 150 by the end of the month, showing progress from the previous period. The Average Days to Close a Challenge also improved significantly, now standing at 32 days.

This summary is based on the GLEIF Data Quality Report for July 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for July 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for July 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report July 2024 download in PDF format

Links to LEIprofile

Links to LEIpapa Web App

LEI 506700GE1G29325QX363
LEIpapa

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

LEI 529900T8BM49AURSDO55
LEIpapa

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Photo by Tima Miroshnichenko

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GLEIF Data Quality Reports June 2024

LEIpapa — Fri, 05 Jul 2024 15:25:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

50%

LEI Issuers Achieving Maturity Level 2
🔴 -5% compared to the previous month

129 days

Average Days to Close a Challenge
🔴 +115 days compared to the previous month

Highlights

June showcased the LEI management community’s dedication to data reliability, maintaining a high Total Data Quality Score of 99.99%, with only 193 check failures on the last day of the month. Moreover, 97% of LEI issuers met Required Quality standards, with half reaching Expected and Excellent Quality levels.

Previously, GLEIF initiated bulk challenges with the LEI issuers to improve relationship information. This period exhibits a significant portion of these challenges resolved, closing 5,604 in total and updating over 4,400 LEI records. The complexity of challenges related to relationship information increased the Average Days to Close a Challenge to 129 days.

This summary is based on the GLEIF Data Quality Report for June 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for June 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for June 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report June 2024 download in PDF format

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Photo by Pavel Danilyuk

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Alexandre Kech the new CEO of GLEIF

LEIpapa — Wed, 03 Jul 2024 03:00:00 +0000

Alexandre Kech, the new CEO of the non-profit Global Legal Entity Identifier Foundation (GLEIF), began in his role effective June 26, 2024, after joining as CEO-elect in May.

As stated on the GLEIF’s website, before joining GLEIF, Alexandre Kech was Head of Digital Securities at the SIX Digital Exchange. As a member of the Executive Board, Alex had full executive responsibility for the Digital Securities business vertical, including relationship management, product, and blockchain-based service development, as well as ecosystem expansion.

Kech said of his appointment at the time that “the potential of the LEI to enhance private and public sector efficiencies, strengthen regulatory oversight, and expand economic inclusion increases exponentially with the integration of digital technologies”.

GLEIF informs that Alexandre Kech brings a unique depth of experience in finance, infrastructure, blockchain, and standardization to the GLEIF leadership position, gained through a variety of leadership positions held over the past 25 years. In his role as CEO, Alexandre Kech will be pivotal in driving further adoption of the LEI and verifiable LEI (vLEI) - the only universally standardized digital legal entity identifier.

Alexandre Kech replaces Stephan Wolf, who served as GLEIF’s CEO since its inception in 2014, and recently stepped down from the position.

Photo: Shutterstock

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GLEIF Data Quality Reports May 2024

LEIpapa — Mon, 24 Jun 2024 16:29:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

55%

LEI Issuers Achieving Maturity Level 2
🟢 +2% compared to the previous month

14 days

Average Days to Close a Challenge
🟢 -14 days compared to the previous month

Highlights

The Total Data Quality Score for May remained high and consistent at 99.99%. Significant improvements were noted in the number of LEI issuers meeting the Required Data Quality standards. GLEIF is adhering to its continual improvement cycle and is currently working on an updated and enhanced Rule Setting. Over 35 new and more than 20 updated data quality checks are under consultation with LEI issuers. The revised Rule Setting v3.4 is scheduled to take effect later this year, following the consultation and implementation periods.

This summary is based on the GLEIF Data Quality Report for May 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for May 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for May 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report May 2024 download in PDF format

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

]]>

GLEIF Data Quality Reports April 2024

LEIpapa — Wed, 08 May 2024 18:28:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

LEI Issuers Achieving Maturity Level 2
🔴 -8% compared to the previous month

28 days

Average Days to Close a Challenge
🟢 -5 days compared to the previous month

Highlights

In April 2024, the Total Data Quality Score remained consistent at 99.99%, reflecting continuous performance in maintaining high data standards. The report also indicates an enhancement in Accessibility and Representation quality criteria. The number of LEI issuers achieving Required, Expected, and Excellent Data Quality slightly decreased compared to the previous reporting period. Additionally, the Average Days to Close a Challenge has improved to 28 days over the past month.

This summary is based on the GLEIF Data Quality Report for April 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for April 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for April 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report April 2024 download in PDF format

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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LEI Jurisdictional Surcharge Update April 2024

LEIpapa — Sun, 14 Apr 2024 22:58:07 +0300

LEIpapa informs clients that LEI Surcharge fees have increased in several jurisdictions.

Jurisdiction	Code	Old Surcharge per annum (€)	New Surcharge per annum (€)
British Virgin Islands	VG	45	50
Cayman Islands	KY	30	35
Finland	FI	0	5
Gibraltar	GI	0	25
Ireland	IE	0	4
Italy	IT	0	5
Luxembourg	LU	10	15
Portugal	PT	20	25
Spain	ES	0	8
USA Delaware	US-DE	0	5

The applicable jurisdictional surcharge will be added to your order at checkout. The fees above don’t include VAT (if any).

All relevant fees are always available on our pricing page. We encourage you to visit the page to familiarize yourself with any changes that may affect your LEI registrations.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured image by Ann H.

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IBAN Discrimination – What You Need To Know

LEIpapa — Wed, 10 Apr 2024 10:30:30 +0300

What is IBAN discrimination?

IBAN discrimination is when a person cannot make or receive a SEPA credit transfer or pay via a SEPA direct debit from her/his bank account located in another Member State.

Please watch the video of Ms. Mairead McGuiness, the EU commissioner, with the explanation.

💸 If you have a bank account in an EU country, you can use your IBAN number to make euro payments across the EU.

If a company or public body stops you using an EU IBAN, this is IBAN discrimination: it’s against EU law.

More info: https://t.co/5yaycexmsZ #MyMoneyEU pic.twitter.com/AD83F2MLR0
— Mairead McGuinness (@McGuinnessEU) March 11, 2024

What to do if you face IBAN discrimination?

If you have encountered any IBAN discrimination – i.e. you have not been able to make or receive a SEPA credit transfer or pay via a SEPA direct debit from your bank account located in another Member State – it is advised to file a complaint with the national competent authority in the country where you have encountered this IBAN discrimination.

Monitoring

To monitor the overall evolution of IBAN discrimination in the European Union, the European Commission would like to receive feedback from all persons who encountered any IBAN discrimination.

LEI requirements

Don’t forget that from January 3rd, 2018 all legal entities (regardless of where the legal entity is incorporated, or geographically located), investment companies, and structures involved in buying, selling, or issuing financial instruments on EU-regulated markets are responsible and required to obtain and maintain a Legal Entity Identifier (LEI).

LEIs contribute to financial transparency, helping regulators and organizations gain insights into beneficial ownership structures and detect potential financial misconduct. Thus, carefully check (using the LEI lookup tool) all the information presented in the Legal Entity Reference Data (LE-RD), before initiating any business transaction.

LEIpapa is an official Registration Agent of Ubisecure RapidLEI and has been in the business since 2021 guiding its clients through the world of LEI. We offer a professional and secure way to register LEIs for all companies you own or represent. We are here to help legal entities apply for new LEI codes and renew their existing LEIs.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured picture X: @McGuinnessEU.

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GLEIF Data Quality Reports March 2024

LEIpapa — Tue, 09 Apr 2024 18:28:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

61%

LEI Issuers Achieving Maturity Level 2
🟢 +6% compared to the previous month

33 days

Average Days to Close a Challenge
🟢 -4 days compared to the previous month

Highlights

In March, the Total Data Quality Score stayed at 99.99%, demonstrating a steady performance. The total number of check failures has reduced to 86, significantly enhancing Validity and Integrity quality criteria. The LEI issuers obtaining Required and Expected Data Quality has improved by two organizations compared to the previous reporting period, while Excellent remained steady. Moreover, the Average Days to Close a Challenge has been reduced to 33 days, as LEI issuers remain committed to resolving outstanding challenges from earlier times.

This summary is based on the GLEIF Data Quality Report for March 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for March 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for March 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report March 2024 download in PDF format

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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Personal Holding Company in Estonia, LEI requirements

LEIpapa — Tue, 09 Apr 2024 10:50:30 +0200

What is a personal holding company?

A Personal Holding Company (PHC) is a legal entity in which all shares are fully owned by a single person (the owner), who makes all important decisions for this Personal Holding Company. At the same time, the owner may also perform the function of a managing director, although this is not required according to Estonian legislation.

The advantages of a personal holding company

Residency First

Unlike the change of citizenship, a legal entity can be registered in any country of the world and we highly recommend choosing Estonian jurisdiction (see the benefits below). Registration in another country (not a country of your nationality) allows, in a sense, to choose the legal system or rules of the game by which the company will live and operate. For example, in many countries, including Estonia, companies can carry out commercial activities in the field of cryptocurrencies, which is currently prohibited in some other countries.

Liability

The company (in the case of a private limited company) usually has limited liability. If the personal holding company goes bankrupt, the owner is liable to creditors only to the extent of his share in the authorized capital, of course, if his actions were not aimed at bankruptcy. However, it should be added that bankruptcy of a Personal Holding Company is an unlikely scenario, as it is never recommended to conduct risky activities directly through a Personal Holding Company.

Tax regulations

Taxation is often the most important aspect when choosing a location for business. Before establishing a Personal Holding Company in a particular country, the owner has the opportunity to study in advance different tax systems and choose the one that is most suitable for him, taking into account his characteristics in terms of expected income and expenses. For example, some countries do not tax the income generated by companies from activities outside the country’s borders.

Benefits of using a personal holding company when investing in funds

A holding company that invests in funds can have several benefits, such as:

Diversification

By investing in a fund, the holding company can spread its investments across a range of assets, which can help to reduce risk and volatility in the portfolio.

Professional management

The fund is managed by professional investment managers who have the expertise and resources to make investment decisions on behalf of the holding company. This can free up the time and resources of the holding company to focus on its core business activities.

Access to a range of assets

A fund can provide the holding company with access to a wide range of assets that may not be available to it directly. For example, a holding company may not have the resources to invest directly in real estate, but it can invest in a real estate fund that provides exposure to this asset class.

Liquidity

Investing in a fund can provide the holding company with greater liquidity compared to investing directly in assets. The holding company can purchase and sell fund shares (investment units) on the open market, providing it with the flexibility to adjust its investment portfolio as needed.

Tax benefits

Depending on the jurisdiction and the specific fund structure, there may be tax benefits to investing in a fund. For example, some funds may be structured in a way that allows investors to defer or reduce taxes on their investment returns. Also, the personal holding company has the right to reduce its taxable base for the amount of expenses directly related to its business activities.

More articles with topics related to investment funds are available here.

Benefits of Estonian jurisdiction for personal holding company opening

Electronic services and communication with authorities

LEIpapa recommends to consider establishing a personal holding company in Estonia. The Republic of Estonia is also known as one of the most attractive destinations in Europe for foreign direct investment, due to its phenomenal economic growth and progressive and innovation-friendly business environment, known for its liberal tax system, transparency, and ease of doing business, as well as the creation and implementation of various modern IT solutions and electronic services.

Taxation system

The Republic of Estonia has set a course to attract foreign capital and has an excellent tax system. The company can have funds in any currency (including cryptocurrencies) and easily make international payments.

The peculiarity of the Estonian tax system is that the profits of companies are not taxed in the next tax period (e.g. quarter or year), but only when the net profit is distributed as a dividend. This rule is intended to encourage reinvestment of net profit in business development or asset acquisition instead of the distribution of dividends.

ℹ️

The Estonian Tax and Customs Board (EMTA) is the agency governing taxation. Their website is a great resource as they have a section specifically to cover e-Residency tax information. The Estonian state portal, eesti.ee, also explains the full tax system in detail.

LEI Requirements for holding companies and investment structures

From January 3rd, 2018 all legal entities (regardless of where the legal entity is incorporated, or geographically located), investment companies, and structures involved in buying, selling, or issuing financial instruments on EU-regulated markets are responsible and required to obtain and maintain a Legal Entity Identifier (LEI).

The LEI number is based on the ISO 17442 standard and each LEI number is assigned only to a single Legal Entity on a global basis. The ecosystem, known as the Global LEI System or GLEIS, is maintained and operated by the Global LEI Foundation (GLEIF) based in Switzerland. The ability to issue Legal Entity Identifiers is only awarded to a limited number of organizations after passing a stringent accreditation process.

Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) require mandatory use of LEIs in transaction reporting under the “No LEI No Trade” initiative.

LEIs are mandatory for payment institutions, banks, insurance companies, brokerages, investment companies and funds, credit unions, and any other entity acting on the financial market. Read more here…

LEIs contribute to financial transparency, helping regulators and organizations gain insights into beneficial ownership structures and detect potential financial misconduct.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Featured photo by Marlene Leppänen

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The Key Role Early-Stage Planning Plays in Fund Management

LEIpapa — Mon, 08 Apr 2024 17:50:30 +0200

The problem explanation

Effective early-phase design and planning are crucial for the success of an investment fund. The structural elements of the investment fund must match the intended investment strategy specified in the fund’s prospectus. Planning and regulatory compliance also help to focus the fundraising team so that effort and cost are not expended inappropriately.

ℹ️

Planning during the early-stage will normally outline all of the fundraising team’s activities up to the first closing of the fund and the key business milestones and regulatory approvals required.

Definitions used in this article

Who are GPs and LPs?

The investors are the limited partners and are referred herein to as the LPs, and the investment manager is the general partner and is referred herein to as the GP.

Who are the fundraising team?

The fundraising team is referred herein to as the group of professionals employed directly by the GP (or its affiliates) and specifically involved in the fundraising process for the GP. The fundraising team may be assisted by outside (3rd party) professionals, including legal advisers, placement advisers, and other specialists. The effective integration and coordination of these advisers is an important part of a successful fundraising process.

The issues that the fundraising team should consider during its early-stage planning

There are several factors that the fundraising team should consider and address during its initial planning. Doing so will help to ensure that the GP will be able to keep its promises to investors and operate the fund with due skill, care, and diligence.

ℹ️

A well-structured investment fund, with an adequate level of financial and operational resources, will be better placed to satisfy the needs of LPs and create a strong foundation for the operation and management of the fund after closing.

Fundraising timing including reviewing any restrictions from existing funds or contracts on raising new money, and the availability of the GP’s human and financial resources to market and raise the fund;
Fundraising budget and costs including consideration of the costs of the fundraising such as legal and regulatory charges, travel and placement adviser costs, and the apportionment of these costs between the fund and the GP;
Investment strategy, including the fund’s investment policy and objectives as well as any specific requirements coming from that strategy such as fund size or geographic scope.
Resources for implementing the strategy, including identifying the human resources that will be needed to implement the fund’s objectives and responsibly manage and administer the fund and the GP’s activities while ensuring such individuals are likely to remain committed to the fund for its duration.
Fund structure, including form and jurisdiction as well as key structural terms such as the length of the investment period and term of the fund, minimum and maximum fund sizes, and deal flow allocation between other funds managed by the GP.
Fund economics including the level of management fees, the provisions regarding the transaction, advisory or other costs to be incurred by the fund or the GP, and the appropriate profit share and carried interest structure, in particular focusing on the apportionment of carried interest, timing of payments and GP clawback mechanisms.
Marketing strategy, including what type of LPs will be targeted for the fund and the resulting regulatory requirements for marketing, the structural impact on the fund, and other specific requirements of the targeted group (such as environmental, social, and governance (“ESG”) or other reporting needs).
Responsible investment considerations including their incorporation into the GP’s organisation and its investment and portfolio monitoring processes and policies.

⚠️

Important! Responsibility of the fund manager for ensuring compliance with applicable anti-money laundering requirements. Read more…

Fund legal requirements and LEI

One of the impacts of the AIFMD is more specific registration and marketing requirements for affected funds and managers. It is important to note that, in some jurisdictions, the GP and/or fund need to be legally established as a prerequisite for starting the registration and authorization process by the regulatory authorities and hence the marketing of the fund.

It is the responsibility of the GP to make sure that the fundraising team complies with the applicable regulations for marketing the fund, and should seek appropriate assurances from third parties (particularly placement advisers) that they will comply with all applicable fund marketing regulations.

From January 3rd, 2018 all legal entities (regardless of where the legal entity is incorporated, or geographically located), investment funds, and structures involved in buying, selling, or issuing financial instruments on EU-regulated markets are responsible and required to obtain and maintain a Legal Entity Identifier (LEI).

LEI number is required by any legal entity whose activities incorporate financial transactions.

How an LEI can help Fund Managers?

The Legal Entity Identifier LEI is a globally recognized alphanumeric code designed to improve financial system transparency and risk management. It plays a crucial role in identifying legal entities involved in financial transactions and, indirectly, in revealing beneficial ownership.

LEIs contribute to financial transparency, helping regulators and organizations gain insights into beneficial ownership structures and detect potential financial misconduct.

Comprehensive due diligence and compliance efforts may involve additional sources of information, such as corporate registers, beneficial ownership registers, and customer-provided documentation. That’s why, at LEIpapa we are building the biggest and the most relevant registry containing all the data necessary for the development of business transactions between financial market participants and other legal entities.

FAQ

Who needs an LEI?

In general, an LEI number is required by any legal entity whose activities incorporate financial transactions. All legal entities, other than natural persons are eligible for the LEI number obtaining.
More info…

Who can apply for an LEI?

As defined in ISO standard 17442, any legal entity that enters into a financial transaction is eligible for an LEI.
More info…

Who may NOT apply for an LEI?

An LEI may not be requested by any of the following:

Individuals;
Unregistered businesses and entities;
Operating divisions;
Branch offices within the same country as a head office with an existing registered LEI.
More info…

How to search LEI codes?

LEIpapa has developed a free LEI Search application, so users can search within the whole LEI database.
More info…

Is the LEI data publicly available?

Yes. The Global Legal Entity Identifier Foundation (GLEIF) has published the Global LEI Index. It provides information, updated daily, on all LEIs issued to date. Any interested party can easily access and search the complete LEI data pool free of charge using LEIpapa LEI Lookup application or on the GLEIF website.

Will an LEI be the same for all classes of assets (bonds, mortgages, etc.)?

Yes. The LEI is a unique identifier for any given legal entity. It is not an identifier for instruments. As a result, that legal entity will use its LEI for reporting of any type of financial transaction it enters into regardless of the asset class or when the particular asset was issued.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

Feature photo by August de Richelieu.

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Lightyear Europe AS obtained the Expanded Authorization by the EFSA

LEIpapa — Mon, 11 Mar 2024 17:50:30 +0200

On March 4th, the Estonian Financial Supervision Authority awarded Lightyear Europe AS with an additional investment firm license. This expanded authorization enables Lightyear Europe AS to offer a wider range of investment services and ancillary services beyond its initial scope.

Originally, Lightyear Europe AS was authorized to receive and transmit securities orders, as well as execute securities-related orders on behalf of clients or using clients’ funds. The new license further empowers Lightyear Europe AS to provide investment advice and conduct securities trading for its own account.

In terms of ancillary services, the company was already permitted to custody and manage clients’ securities and offer foreign exchange services related to the provision of these securities services. The recent authorization extends Lightyear Europe AS’s capabilities to include offering credit or loans to investors to conduct securities transactions, with the condition that the credit or loan is directly related to those transactions.

The leadership of Lightyear Europe AS comprises Martin Sokk, Heil’s Veskimeister, and Uku Lember. The page of Lightyear Europe AS is available on the Financial Supervision Authority’s website in the market participants register.

About Lightyear Europe AS

As defined on the Lightyear’s website, Lightyear Europe AS represents a straightforward and accessible avenue for global investment without the typical barriers or fees. Through an intuitive app, Lightyear Europe AS democratizes investing, making it accessible to all.

Challenges addressed

Lightyear Europe AS addresses several issues prevalent in the traditional investment landscape:

Expensive and non-transparent fee structures characterized by hidden and exorbitant costs.
Restricted access to global markets through local brokers, often resulting in subpar access.
A scarcity of informative and educational resources, making understanding investments challenging.

Although Lightyear Europe AS is in the early stages of its journey, it aims to surpass traditional incumbents significantly.

Services offered

Lightyear Europe AS offers:

A multi-currency account allowing users to deposit, hold, and convert funds across various currencies.
Access to over 3,500 international stocks and ETFs, with the portfolio continuously expanding.

The mission extends to enhancing users’ investment skills through the development of customized tools designed to cater to both novices and seasoned investors alike.

Within the app, users can find:

Customizable charts
Fundamental analysis of instruments
Analyst ratings and price targets
Financial news and more

Lightyear Europe AS is committed to innovation, ensuring users have access to the best tools available, tailored to their location.

ℹ️

The International Securities Identification Number (ISIN) is a unique code that is used to identify specific securities. Read more in this post.

Founding and Mission

Founded by former TransferWise executives Martin Sokk and Mihkel Aamer, Lightyear Europe AS aims to introduce a global perspective to the European investment scene. The company seeks to eliminate the traditional barriers European investors face, such as high transaction, custody, and hidden foreign exchange fees, through its multi-currency accounts, thus facilitating seamless access to international markets.

Legal and Regulatory Compliance

Lightyear Europe AS is registered with an LEI code: 254900BBBJZF2IE8EN54, adhering to the regulatory requirements for operating within the financial markets.

🇬🇧 Regulated in the UK by the FCA

Appointed representative of RiskSave Technologies Ltd, authorized and regulated by the FCA (FRN 775330).

🇪🇺 Regulated in the EU by EFSA

Authorized and regulated by the Estonian Financial Supervision Authority (4.1-1/31) and authorised to operate across the European Union.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

]]>

GLEIF Data Quality Reports February 2024

LEIpapa — Mon, 11 Mar 2024 07:58:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

55%

LEI Issuers Achieving Maturity Level 2
🟢 +1% compared to the previous month

37 days

Average Days to Close a Challenge
🔴 +13 days compared to the previous month

Highlights

In February, the Total Data Quality Score remained stable at 99.99%, reflecting consistent performance in maintaining high data standards. The number of overall check failures decreased to 203 in total (compared to 412 as per end of January), and the quality criteria of Validity, Integrity, and Timeliness exhibited noticeable improvements. Over the past month, more than 6,200 challenge items were resolved, representing a solid 36% increase from the previous period. As LEI issuers address accumulated challenges, a slight increase in the Average Days to Close a Challenge can be observed, now standing at 37 days.

This summary is based on the GLEIF Data Quality Report for February 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for February 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for February 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report February 2024 download in PDF format

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

]]>

Estonia's Comprehensive Approach to Combat Money Laundering

Makhmud Efendi — Fri, 23 Feb 2024 20:12:00 +0300

This article delves into Estonia’s multifaceted strategy to safeguard its financial system against money laundering and terrorism financing. Highlighting the pivotal roles of the Estonian Financial Intelligence Unit, Estonian Financial Supervision Authority (EFSA or Finantsinspektsioon), and investigative agencies, it explores the rigorous measures in place for monitoring, prevention, and enforcement. With a focus on international collaboration and the innovative use of the Legal Entity Identifier (LEI) code, the piece offers an in-depth look at Estonia’s commitment to financial integrity and the global fight against illicit financial activities.

Ensuring the stability and transparency of Estonia’s financial system necessitates continuous efforts to combat money laundering and terrorism financing. This crucial endeavor is spearheaded by the Estonian Financial Intelligence Unit, Finantsinspektsioon (the Estonian Financial Supervisory Authority), and investigative authorities, each with clearly defined legal obligations.

Financial Intelligence Unit

What is FIU?

The Financial Intelligence Unit (FIU) is an independent structural unit of the Police and Border Guard Board whose main duties are gathering, registration, processing, and analysis of information referring to money laundering and terrorist financing (i.e. reports and information submitted by all the entities required to comply with the law), as well as tracing of criminal proceeds and strategic analysis that covers the risks, threats, trends and ways of operation of money laundering and terrorist financing.

Investigative functions

In certain cases, the Financial Intelligence Unit also performs the duties of an investigative body. The FIU verifies whether the data submitted to it is important for countering, identifying, or pre-trial investigation of money laundering, related criminal offenses, and terrorist financing. The FIU analyses and verifies information about suspicions of money laundering and terrorist financing, takes measures for the preservation of property where necessary, and immediately forwards materials to the competent authorities (e.g. Prosecutor’s Office) upon identification of elements of a criminal offense.

Supervisory functions

The FIU also has supervisory functions. The FIU supervises compliance with the requirements of the Estonian MLTFPA and legislation adopted on the basis thereof concerning the obliged entities required to comply with the MLTFPA that are not subject to the supervision by the EFSA, the Estonian Bar Association (attorneys) or the Ministry of Justice (notaries). The FIU also issues authorizations to its supervision subjects. In addition, the FIU exercises state supervision over compliance with the International Sanctions Act (incl. financial sanctions). In connection with this obligation, the FIU shall publish the information about the imposition, amendment, or termination of international financial sanctions or shall make it available on its webpage.

Who are obliged entities?

Obliged entity means a person specified in the §2 of the MLTFPA.

LEIpapa recommends reviewing official sanctions lists every single time before initiating any business transaction with the new counterparty. Find the updated information on Sanctions Lists and Resources.

Summary

The Financial Intelligence Unit plays a pivotal role in the oversight of money laundering activities, gathering data, and scrutinizing earnings from criminal endeavors. It possesses the authority to obtain information concerning transactions, individuals, and activities suspected of being linked to money laundering or terrorist financing from the EFSA, other governmental and local entities, and, under certain conditions, private individuals.

Investigative Agencies

Investigative agencies, including the Police and the Prosecutor’s office, are tasked with identifying, investigating, and prosecuting money laundering cases, and forwarding evidence of criminal conduct to the judiciary. The courts then determine guilt and assign penalties accordingly.

In the system of money laundering and terrorist financing prevention, these are authorities that hold the right in criminal proceedings by having the obligation to conduct criminal proceedings if facts referring to a criminal offense become evident (incl. in the role of an investigative body) and by having the right to perform (pre-trial) acts related to criminal proceedings. The functions of the Estonian Internal Security Service are mostly related to terrorist financing prevention. Thus, the above authorities are competent to conduct proceedings on money laundering criminal offenses and decide on conviction for criminal offenses (court).

Financial Supervision Authority

EFSA’s contribution to anti-money laundering efforts primarily involves the regulation and monitoring of financial intermediaries through its supervisory functions. It ensures that the management structures and risk management practices of banks and other financial entities are adequately designed to align with their business strategies and associated risks. This encompasses a wide range of services, including credit issuance, payment and investment services, and insurance, emphasizing the importance of the know-your-client principle in mitigating money laundering risks.

While EFSA’s role is to oversee operational systems and processes, it does not adjudicate on specific instances of money laundering. Should evidence of such activities be discovered during its regulatory duties, it is mandated to report these findings to the Financial Intelligence Unit as per legal requirements.

International Connections

Internationally, Estonia actively participates in committees and working groups dedicated to setting and evaluating standards for combating money laundering and terrorist financing, collaborating closely with entities like the MONEYVAL committee of the Council of Europe and the European Banking Authority’s anti-money laundering group.

EFSA, in partnership with the European Central Bank, oversees major Estonian banks and independently regulates smaller financial institutions, while the supervision of branches of EU banks outside the eurozone in Estonia falls under the jurisdiction of the respective home country’s regulatory body.

ML&TF Prevention and Supervision Framework

Step 1: Information Gathering

This involves collecting data from various sources, including on-site and off-site inspections, ensuring information accuracy, and consolidating data for analysis.

Step 2: Risk Analysis

The input is analyzed to map and assess risks, which aids in the planning of supervisory measures.

Step 3: Supervisory Actions

Depending on the entity’s cooperation level and the situation’s specifics, actions may include discussions on rectifying potential violations, issuing directives to address or prevent violations, or, in severe cases, revoking licenses.

In cases of suspected money laundering, EFSA notifies the Financial Intelligence Unit and/or the Prosecutor’s Office.

Strategic Objectives

Preventing money laundering and terrorist financing remains a strategic priority for the EFSA, utilizing risk-based supervision as a cornerstone of its approach. The proportion of non-resident clients within a bank’s portfolio serves as a key risk indicator in this context. The case of Danske Bank’s Estonian branch, with its significant non-resident clientele, underscores the importance of stringent oversight and the effectiveness of the EFSA’s supervisory measures in identifying and rectifying non-compliance with anti-money laundering regulations.

The ongoing commitment to combating money laundering is a continuous process, requiring constant vigilance and adaptation to emerging threats.

Legal Entity Identifier (LEI) Against the Money Laundering

In this ongoing battle against money laundering, the introduction and enforcement of the Legal Entity Identifier (LEI) code stand out as pivotal measures. The LEI is a critical tool for enhancing transparency in financial transactions, allowing for the clear identification of corporate entities involved in financial dealings.

Its role in preventing money laundering is indispensable, as it ensures that all financial organizations can be easily and accurately identified, thereby closing the gaps that illicit actors might exploit. Discover who can apply for an LEI and how to easily search LEI codes with LEIpapa search tool.

For the integrity of the global financial system and to meet regulatory requirements, securing an LEI is essential for all financial institutions. This step not only contributes to the broader efforts to prevent money laundering but also reinforces the trust and safety of financial operations worldwide.

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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Kilvar Kessler: Primary payment services must remain accessible

Makhmud Efendi — Fri, 23 Feb 2024 13:10:00 +0200

Kilvar Kessler (photo source: Finantsinspektsioon), the head of the Financial Supervision Authority, stated yesterday, February 22, 2024, in an information session for bank and branch representatives that primary payment services must remain accessible even when they do not generate substantial revenue for banks. These essential services, necessary for managing daily financial activities like card payments, direct debits, and cash transactions, should be available to all residents in Estonia.

Primary payment services accessibility

The Authority has identified instances where banks and branches failed to provide these services consistently and will intensify checks to ensure compliance with legal requirements.

The directive and Estonian law regulate the availability and provision of these services, with strict requirements to prevent exclusion from the financial system. The guidelines aim to unify market practices and ensure broad consumer access to these vital services, addressing the issues most relevant to Estonian payment service providers. Oversight is jointly conducted by the Financial Supervision Authority and the Consumer Protection and Technical Regulatory Authority, with the latter having the authority to conduct misdemeanor proceedings for violations.

The original guideline came into force on 01.01.2024 and is available in Estonian on the EFSA website.

The document outlines requirements for primary payment service providers. It emphasizes the legal basis for these guidelines, and the critical role of credit institutions in offering primary payment services, and specifies the criteria for accessibility, refusal grounds, and pricing of these services.

The guideline document aims to ensure consumer protection, transparency, and the availability of primary payment services to all eligible consumers in Estonia, while also addressing the prevention of financial crimes such as money laundering and terrorism financing according to the Estonian MLTFPA. It also underscores the importance of clear communication with consumers, especially regarding the refusal of service and the handling of complaints, and mandates reasonable pricing to ensure services are accessible to a wide audience.

The guideline key points

Key Point	Description
Legal Framework	Establishes the guideline’s legal basis under EU and national laws for payment services.
Scope and Objectives	Defines applicability to credit institutions for accessible, transparent, and protected payment services.
Consumer Eligibility	Details criteria for individuals/entities eligible for primary payment services, emphasizing inclusivity.
Service Accessibility	Outlines requirements for making payment services accessible to all eligible consumers.
Refusal of Service	Specifies conditions under which providers can refuse service with justified reasons.
Pricing Policy	Addresses transparent and reasonable pricing of payment services for affordability.
Prevention of Financial Crimes	Highlights measures against money laundering and terrorism financing for system integrity.
Consumer Communication	Emphasizes clear communication with consumers regarding service terms and complaint processes.
Complaint Handling	Sets standards for handling consumer complaints, including timely response and resolution.
Oversight and Compliance	Describes the supervisory role in monitoring compliance, including audits and enforcement.

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Banks, brokers, and financial institutions worldwide rely on LEIs that help them verify the identities of the legal entities involved in the transactions, which can include companies, funds, or trusts. Read more

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

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GLEIF Data Quality Reports January 2024

LEIpapa — Thu, 15 Feb 2024 20:13:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

54%

LEI Issuers Achieving Maturity Level 2
🟢 +5% compared to the previous month

6 days

Average Days to Close a Challenge
🔴 +18 days compared to the previous month

Highlights

The Total Data Quality Score for January remains steady at 99.99. The report indicates enhancements in specific quality criteria, including Validity and Consistency, alongside a reduction in the overall number of failures. The count of LEI issuers attaining Expected and Excellent Data Quality has risen by two organizations compared to the previous reporting period. Despite resolving a substantial number of challenges, there is a backlog of bulk challenges, leading to an increase in the Average Days to Close a Challenge, now standing at 24.

---
title: "Total Data Quality Score Trend"
description: "A line graph showing the steady state of the Total Data Quality Score over time."
author: GLEIF
---
graph LR
    A[November 2023] -->|99.99%| B[December 2023]
    B -->|99.99%| C[January 2024]
    style A fill:#CFE2F3,stroke:#333,stroke-width:1px
    style B fill:#CFE2F3,stroke:#333,stroke-width:1px
    style C fill:#CFE2F3,stroke:#333,stroke-width:1px

This summary is based on the GLEIF Data Quality Report for January 2024 and aims to highlight key data and trends. The report is available for download below. The report contains various diagrams and data presentations related to the Global LEI Data Quality for January 2024, including trends in Total Data Quality Score, Maturity Level Performance, Failing Checks, and more.

The Global LEI Data Quality Report

The Global LEI Data Quality Report for January 2024 is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report January 2024 download in PDF format

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Renew your existing LEI to stay compliant and get benefits.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

An NFT Web 3.0 LEI Certificate minted by LEIpapa with your entity data.

]]>

ISIN-LEI Mapping for Transparency in the Financial Market

Makhmud Efendi — Wed, 14 Feb 2024 10:08:37 +0300

Financial markets operate on a massive scale, involving countless companies, financial instruments, and transactions. To navigate this complexity, standardized identifiers play a crucial role (read here about six common organizational identifiers), and two key players are the ISIN (International Securities Identification Number) and the LEI (Legal Entity Identifier).

ISIN to LEI Mapping

The International Securities Identification Number (ISIN)

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The International Securities Identification Number (ISIN)
Established in 1981, ISIN uniquely identifies financial instruments like stocks, bonds, and derivatives. Think of it as a passport for securities.

The International Securities Identification Number (ISIN) is a unique code that is used to identify specific securities. Established in 1981 and fully adopted a decade later, the ISIN is recognized globally under the ISO 6166 standard. It serves as a universal identifier for financial instruments such as stocks, bonds, futures, and other securities. The purpose of the ISIN is to facilitate a standardized identification of securities, helping to reduce confusion and improve clarity in financial transactions across international borders.

Securities are often traded on multiple exchanges and in various countries, each with its local identification systems. The ISIN helps to bridge these differences by providing a single, standardized code that can be recognized internationally. This makes it easier for investors, traders, and regulators to identify and track securities, enhancing the efficiency and safety of global financial markets.

The structure of an ISIN includes an alphanumeric format, consisting of a two-letter country code, a nine-character national security identifier, and a single check digit. This structure allows the ISIN to encapsulate essential information about the security, including its country of issue.

ISIN number definition. Source: LEIpapa.

ISINs are issued by National Numbering Agencies (NNAs) in each country, with the Association of National Numbering Agencies (ANNA) serving as the global authority that oversees the ISIN system. ANNA’s role is to promote and ensure the adoption and use of the ISIN standard across more than 200 jurisdictions, aiming to make the financial world more efficient, safer, and stable for investors and the institutions that serve them.

The Association of National Numbering Agencies (ANNA) is a global member association of National Numbering Agencies (NNAs), seeking to foster standardization within the financial industry by upholding the International Organization for Standardization (ISO) principles, and by promoting International Securities Identification Numbers (ISIN), Financial Instrument Short Name (FISN), and Classification of Financial Instruments (CFI) codes for financial instruments.

In summary, the ISIN is a critical tool for achieving transparency and standardization in the global financial marketplace, enabling precise identification of securities and reducing the risk of misidentification and fraud.

The Legal Entity Identifier (LEI)

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The Legal Entity Identifier (LEI)
Introduced in 2011, the LEI identifies the legal entities involved in financial transactions, similar to how a national ID identifies individuals. This helps trace ownership and accountability.

To identify legal entities involved in financial transactions and other valued transactions between corporations or legal entities, a Legal Entity Identifier (LEI) global standard was designed and defined by ISO 17442, in the spirit of public and private partnership to improve transparency in the marketplace for entities and regulators alike and to collate financial transaction information into a freely accessible Global LEI System. In June 2012 at the Los Cabos Summit, the G20 Leaders endorsed the Financial Stability Board (FSB) report “A Global Legal Entity Identifier for Financial Markets”, and encouraged “global adoption of the LEI to support authorities and market participants in identifying and managing financial risks”. Regulated by the Regulatory Oversight Committee (ROC) through the Global Legal Entity Identifier Foundation (GLEIF), LEI is a 20-character identifier that represents a distinct legal entity engaged in financial transactions and the purpose of LEI is to be the single organization identity behind every business.

The LEI code specifies the minimum reference data, which must be supplied for each LEI, such as the official name of the legal entity as recorded in the official registers, the registered address of that legal entity, the country of formation, the codes for the representation of names of countries and their subdivisions. The information stating the date of the first LEI assignment, the date of the last update of the LEI information, and the date of expiry (when applicable) is also stored in the global database.

The meaning of the digits in the Legal Entity Identifier (LEI) code. Source: LEIpapa.

Each LEI contains information about an entity’s ownership structure (direct and ultimate parent entities) and therefore answers the questions of “who is who” and “who owns whom” for each particular entity. Every single LEI code is unique and shall be issued only once for a specific legal entity; the same LEI code cannot be issued to another legal entity. The LEI code does not replace the registry code (registration number of the entity) of the commercial register, which is still used to identify a legal entity.

Moreover, LEI codes are used for reporting as of 3 January 2018. Under the MiFIR and MiFID II regulations, transaction reports shall, among other things, also be used for investigating market abuse. The total amount of LEI codes issued worldwide by February 2024 corresponds to more than two million codes.

More information regarding the LEI is available in our knowledge base.

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What is ISIN-to-LEI Mapping?
ISIN-to-LEI Mapping links the International Securities Identification Number (ISIN) of a financial instrument to the Legal Entity Identifier (LEI) of the company that issued it. This improves transparency and risk management in the financial system by allowing regulators and market participants to easily identify who is involved in each transaction.

While both (ISIN and LEI) serve distinct purposes, their synergy unlocks significant benefits through ISIN-LEI Mapping. This process links these identifiers, creating a clearer picture of who owns and trades what.

Source: GLEIF

Benefits of ISIN-to-LEI Mapping

Benefit	Description
Enhanced Transparency	By connecting issuers (LEIs) to their issued securities (ISINs), the financial landscape becomes more transparent, reducing information asymmetry and potential misconduct.
Improved Risk Management	Mapping allows for better risk assessment by pinpointing ownership structures and potential exposures across different instruments and entities.
Streamlined Compliance	Regulatory requirements like SFTR (Securities Financing Transactions Regulation) mandate LEI usage. Mapping simplifies compliance by readily linking relevant entities and instruments.
Reduced Fraud & Money Laundering	Clearer identification makes it harder for bad actors to hide their activities, deterring fraud and money laundering attempts.
Real-time Identity Checks	Instant verification of entities involved in transactions, further enhancing security and efficiency
Automated Processes	Linking multiple ID platforms through standardized mapping could pave the way for automated compliance and risk management procedures.

BIC-to-LEI Mapping

In February 2018, a significant advancement in financial data transparency and efficiency was achieved through the collaboration between the Global Legal Entity Identifier Foundation (GLEIF) and SWIFT. They released the first-ever open source file that aligns a Business Identifier Code (BIC), allocated to organizations, with their corresponding Legal Entity Identifier (LEI).

What is a Business Identifier Code (BIC)?

The Business Identifier Code (BIC), also known as ISO 9362, is a globally recognized standard formulated by the International Organization for Standardization (ISO). It plays a crucial role in identifying entities within the financial services sector.

What is SWIFT?

SWIFT is a global member-owned cooperative and the world’s leading provider of secure financial messaging services. SWIFT is committed to providing actionable global ID and reference data services and products, like the business identifier code (BIC), to global market participants, including regulators and the financial services industry to uniquely identify, classify and describe entities and financial instruments. SWIFT is the registration authority for the ISO 9362 (BIC) standard appointed by ISO. In this role, SWIFT receives BIC registration requests, assigns a BIC, and publishes the related BIC Data Record as defined in and under the requirements set out in ISO 9362.

How is BIC-to-LEI mapping implemented?

This innovative BIC-to-LEI mapping initiative is based on a methodology certified by GLEIF and implemented by SWIFT. The relationship file, available in CSV format and refreshed monthly, facilitates the linkage of these pivotal entity identifiers at no cost. The file is available available for download at GLEIF’s official website.

The unveiling of this open-source BIC-to-LEI file marks a groundbreaking collaboration between GLEIF and SWIFT. It offers a novel approach for market players to effortlessly connect and reference essential entity identifiers without incurring expenses. This development is particularly advantageous for entities engaged in the payments and over-the-counter (OTC) derivatives markets, streamlining processes like counterparty information collection, aggregation, and reconciliation, as well as enhancing due diligence for Know Your Customer (KYC) and Know Your Supplier (KYS) practices.

The launch of the BIC-to-LEI relationship file represents a significant step towards unifying and streamlining entity verification processes, ultimately reducing the financial and operational burdens associated with these tasks.

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GLEIF’s complimentary Certification of LEI Mapping service guarantees that organizations mapping the LEI to their identifiers employ cutting-edge methods and processes for precise mapping, ensuring data accuracy and reliability.

For more detailed information on BIC and LEI, you can visit the official websites of the International Organization for Standardization (ISO) at ISO’s official website and the Global Legal Entity Identifier Foundation (GLEIF) at GLEIF’s official website.

Conclusion

While significant progress has been made, not all instruments are fully mapped yet. Ongoing efforts by organizations like ANNA, GLEIF, and data mapping companies are continuously improving coverage and accuracy.

If your organization deals with financial instruments, consider obtaining an LEI and exploring ISIN-LEI mapping solutions. LEIpapa encourages entities to register an LEI to not only comply with global financial standards but also to contribute to a more secure and transparent financial ecosystem.

By working together and embracing standardized identifiers, we can build a more transparent and resilient financial future.

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

FAQ

What is ISIN-to-LEI Mapping?

ISIN-to-LEI Mapping links the International Securities Identification Number (ISIN) of a financial instrument to the Legal Entity Identifier (LEI) of the company that issued it. This improves transparency and risk management in the financial system by allowing regulators and market participants to easily identify who is involved in each transaction. ISIN-to-LEI relationship files are available to download at GLEIF’s official website.

What is BIC-to-LEI Mapping?

What is G20 Group of Twenty 2012?

The Group of 20 (G20) Summit of the world’s twenty major economies took place in Los Cabos, Mexico, and was the first such summit for Latin America. In its G20 Presidency role in 2012, Mexico has prioritized: economic stability and structural reform for growth and employment; strengthening of financial systems and procurement of financial inclusion for economic growth; improving international financial architecture in an interconnected global economy; mitigating negative effects on price level and volatility of commodities, in particular those affecting food security; and promoting sustainable development with a focus on infrastructure, energy efficiency, green growth and financing the fight against climate change.
More info on G20 Group of Twenty…

Who needs an LEI?

In general, an LEI number is required by any legal entity whose activities incorporate financial transactions. All legal entities, other than natural persons are eligible for LEI number obtaining.
More info…

Who can apply for an LEI?

As defined in ISO standard 17442, any legal entity that enters into a financial transaction is eligible for an LEI.
More info…

Who may NOT apply for an LEI?

An LEI may not be requested by any of the following:

Individuals;
Unregistered businesses and entities;
Operating divisions;
Branch offices within the same country as a head office with an existing registered LEI.
More info…

How to search LEI codes?

LEIpapa has developed a free LEI Search application, so users can search within the whole LEI database.
More info…

Is the LEI data publicly available?

Will an LEI be the same for all classes of assets (bonds, mortgages, etc.)?

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9 Advantages of the LEI system in the fight against money laundering

Makhmud Efendi — Mon, 05 Feb 2024 10:08:37 +0300

As financial crimes become increasingly sophisticated, regulators and institutions face mounting challenges in their efforts to combat money laundering effectively. However, amidst this complex landscape, the Legal Entity Identifier (LEI) stands as a beacon of hope. Designed to provide a standardized and globally recognized identification system, the LEI offers a range of advantages that can bolster the fight against money laundering. In this article, we will delve into nine key advantages of the LEI, exploring how its implementation can fortify due diligence processes, enhance risk assessment capabilities, and foster greater collaboration among stakeholders.

The issue of money laundering (ML) and the financing of terrorism (TF), has recently acquired relevance, becoming truly international. This phenomenon not only harms the economic security and financial stability of a particular country but also makes it difficult to investigate and solve crimes and undermines the reputation of entities having the obligation to implement due diligence measures for the prevention of money laundering and terrorism financing and inform relevant authorities about suspicions or related cases.

What is money laundering?

First of all, let’s define what the “money laundering” is…

A common definition of money laundering

Money laundering is the process of obtaining the earnings from criminal activity and disguising their illegal sources to use the funds to carry out legal or illegal activities.

Simply put, money laundering is the process of turning “dirty money” into “clean money”.

The “money laundering” term is derived from the argot of criminals; in common words, it is a specific process of making illegally gained proceeds (i.e. “dirty money” or “black money”) appear legal (i.e. “clean” or “washed”) so that they can be used openly.

Criminals achieve this goal by hiding the source of funds, changing their shape, or moving money to a location where it is less likely to be found. Criminal activities that lead to money laundering (defined as predicate offenses) can include the illegal sale of weapons, drug trafficking, smuggling, and other activities related to organized crime, theft or misappropriation of funds, insider trading, bribery, and different fraud schemes.

Intergovernmental body (FATF)

The Financial Action Task Force on Money Laundering (FATF), founded in 1989, is an intergovernmental body that sets standards and supports international cooperation in the fight against money laundering. The group members are the G7 countries. One of the first achievements of the FATF was to refute the claim that money laundering concerns only cash transactions. Through several typology exercises, FATF experts have demonstrated that money laundering can occur through any channel, financial institution, or commercial company.

Definition of money laundering proposed by Palermo Convention

The UN Convention against Transnational Organized Crime from the year 2000, also known as the “Palermo Convention”, provides the following definitions of money laundering:

the conversion or transfer of property, if such property is known to constitute proceeds of crime, to conceal or disguise the criminal source of that property, or to assist any person involved in the predicate offense so that he or she can evade responsibility for their actions;
hiding or concealment of the true nature, source, location, method of disposal, movement, rights to property or its belonging, if it is known that such property is the proceeds of crime;
the acquisition, possession, or use of property, if at the time of receipt, it is known that such property constitutes proceeds of crime.

Knowledge is an important precondition

Knowledge is an important precondition in defining money laundering. All of the above paragraphs contain the phrase: “if it is known that such property is the proceeds of crime”. In this case, the general concept of “knowledge” is interpreted rather broadly. According to the FATF 40 Recommendations on Anti-Money Laundering and the Financing of Terrorism and the 4th EU Directive on the Protection of the Financial System Against Money Laundering and the Financing of Terrorism, “the intent and the knowledge necessary to prove the crime of money laundering include the concept, according to which the conclusion about such a mental state can be deduced from objective facts”.

Intentional ignorance

A number of jurisdictions also use the legitimate principle of intentional ignorance in money laundering cases to prove the knowledge. In the courts, intentional ignorance is defined as “deliberate evasion of knowledge of the facts” or “purposeful indifference”. It has been established that intentional ignorance is the equivalent of real knowledge of an illegal financial source or the client’s intentions to carry out a money laundering operation.

Three steps of money laundering

According to FATF, typically, the process of money laundering involves three steps:

Placement is the first step where illegitimate funds are furtively introduced into the legitimate financial system (Examples: cash top-ups).
Layering is the second step where several transactions or complex financial schemes are performed to disguise the illegal source of the funds sometimes by transferring through numerous accounts.
Integration is the third step where the illegal funds are integrated into the financial system through additional transactions and benefits from the illegal funds are acquired by the criminals. In practice, money laundering cases may not have all three stages, some of them could be combined, or several stages repeat several times. As stated by the Financial Crimes Enforcement Network (FinCEN), money laundering can facilitate crimes such as drug trafficking and terrorism and can adversely impact the global economy (FinCEN, 2021).

Thus, anti-money laundering (AML) is closely related to counter-financing of terrorism (CFT), and AML regulations combine money laundering (source of funds) with terrorism financing (destination of funds).

Why was LEI developed?

The 2012 Group of Twenty (G20) developed the LEI system in response to the inability of financial institutions to identify legal entities uniquely so that their financial transactions in different national jurisdictions could be fully tracked. Thus, the G20 endorsed the recommendations of the Financial Stability Board (FSB) regarding the framework for the development of a Global LEI system for parties to financial transactions and encouraged global adoption of the LEI to support authorities and market participants in identifying and managing financial risk. Since its introduction, the LEI has been adopted by millions of entities across more than 200 countries (ESRB, 2020, 403/2). The Regulatory Oversight Committee (ROC) is a group of public authorities from around the globe established in January 2013 to coordinate and oversee a worldwide framework of legal entity identification, the Global LEI System (GLEIF).

LEIpapa encourages entities to register an LEI to not only comply with global financial standards but also to contribute to a more secure and transparent financial ecosystem.

What is the LEI system?

LEI Registration Agents

To streamline the process of issuing LEIs, GLEIF has introduced the concept of “Registration Agents”. The Registration Agent acts according to a license agreement with GLEIF, and facilitates the interaction of Clients (Legal Entities) with the network of organizations called Local Operating Units (LOUs) that issue LEIs and provide related services.

LEIpapa is the official Registration Agent of Ubisecure RapidLEI (Managing LOU) and has been providing its services to legal entities since 2021.

Legal Entities are required to notify the Registration Agent they served by, or LOU, of any changes to their Reference Data. The annual mandatory renewal process allows Clients and LOUs to re-verify and confirm the correctness of the submitted Reference Data. This ensures the high quality of the data in the Global LEI database and thus the credibility of the Global LEI System.

What does the LEI code specify?

The meaning of the digits in the Legal Entity Identifier (LEI) code. Source: LEIpapa.

Moreover, each LEI contains information about an entity’s ownership structure (direct and ultimate parent entities) and therefore answers the questions of “who is who” and “who owns whom” for each particular entity. Every single LEI code is unique and shall be issued only once for a specific legal entity; the same LEI code cannot be issued to another legal entity. The LEI code does not replace the registry code (registration number of the entity) of the commercial register, which is still used to identify a legal entity.

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More information regarding the LEI is available in our knowledge base.

LEI codes associate legal entities with key information, which allows them to participate in global financial markets to be clearly and uniquely identified and are already used to identify the parties to EMIR derivative instruments transactions and due to the application of implementing regulation EU/2017/105, no other alternative codes can be used when providing notification of transactions made with derivative instruments starting from 1 November 2017.

How the LEI can help to avoid money laundering?

The main purpose of the LEI system is to improve transparency and reduce risk in the financial system. Here are the 9 advantages of the LEI system in the fight against money laundering:

Improved Transparency: By having a unique identifier for every legal entity involved in a financial transaction, it becomes much easier to track and trace the parties involved. This makes it more challenging for entities to hide their true identity or their involvement in a series of transactions.
Enhanced Due Diligence: Financial institutions can use the LEI as part of their customer due diligence processes to ensure they know who they’re dealing with. This could help in verifying the authenticity of the involved entities.
Data Consistency and Accuracy: The LEI database is maintained by the Global Legal Entity Identifier Foundation (GLEIF). This ensures that data related to an entity is accurate, up-to-date, and consistent across various platforms. Such uniform data reduces the chances of mistakes or misidentification, which could be exploited for money laundering.
Cross-border Recognition: The LEI system is recognized and used globally, making it easier to track international transactions. Money laundering often involves moving funds across borders to obscure their origins. A globally recognized identification system helps in tracing such funds.
Monitoring and Reporting: Regulatory authorities can more easily monitor and report suspicious activities when entities are clearly identified by their LEI. This can lead to quicker detection of unusual patterns indicative of money laundering.
Integrating with Other Systems: The LEI can be integrated with other financial and regulatory databases or systems to create a more comprehensive picture of financial activities. This makes it more challenging for criminals to find gaps or loopholes that they might exploit.
Reputation and Trust: Entities that have an LEI demonstrate a commitment to transparency and compliance. Those involved in illicit activities might be less likely to use an identification system that could expose them, making it harder for them to operate in the mainstream financial system.
Streamlined Compliance: For institutions that are mandated to report to regulatory bodies, having a standardized identification system means less ambiguity and a more streamlined reporting process. This can lead to quicker detection and action against money laundering activities.
Building a Network: As more and more entities adopt the LEI system, a more connected network of legal entities is formed. This interconnectivity makes the financial ecosystem more transparent and harder for money launderers to navigate without detection.

While the LEI system offers several advantages in the fight against money laundering, it’s just one tool in a larger toolbox. For it to be truly effective, it must be combined with other measures, including robust internal controls, continuous monitoring, and international cooperation.

LEIpapa encourages entities to register an LEI to not only comply with global financial standards but also to contribute to a more secure and transparent financial ecosystem.

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.

Transfer your existing LEI code to LEIpapa and RapidLEI for full service.

FAQ

What is Group of Seven (G7)?

The Group of Seven (G7) is an intergovernmental political and economic forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; additionally, the European Union (EU) is a “non-enumerated member”. It is organized around shared values of pluralism, liberal democracy, and representative government. G7 members are the major IMF advanced economies. The U.S. Department of the Treasury engages with the Group of 7 (G7) and Group of 20 (G20) on a variety of international economic development and security issues. More info…

What is G20 Group of Twenty 2012?

Who needs an LEI?

Who can apply for an LEI?

As defined in ISO standard 17442, any legal entity that enters into a financial transaction is eligible for an LEI.
More info…

Who may NOT apply for an LEI?

An LEI may not be requested by any of the following:

Individuals;
Unregistered businesses and entities;
Operating divisions;
Branch offices within the same country as a head office with an existing registered LEI.
More info…

How to search LEI codes?

LEIpapa has developed a free LEI Search application, so users can search within the whole LEI database.
More info…

Is the LEI data publicly available?

Will an LEI be the same for all classes of assets (bonds, mortgages, etc.)?

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GLEIF Data Quality Reports December 2023

LEIpapa — Mon, 08 Jan 2024 20:13:30 +0200

Summary

Average Total Data Quality Score (TDQS)
🟡 +/−0 compared to the previous month

49%

LEI Issuers Achieving Maturity Level 2
🟢 +6% compared to the previous month

6 days

Average Days to Close a Challenge
🟢 -4 days compared to the previous month

Average Total Data Quality Score (TDQS): 99.99, maintaining stable performance from the previous month.
LEI Issuers Achieving Maturity Level 2: Increased by 6%, reaching 49%.
Average Days to Close a Challenge: Reduced by 4 days, now averaging 6 days.

This summary is based on the GLEIF Data Quality Report for December 2023 and aims to highlight key data and trends. The reports are available for download below.

Highlights

Total Data Quality Score Trend: Stable at 99.99. 35 out of 37 LEI issuers met the required data quality, with 18 achieving expected and excellent data quality levels.
Introduction of the extended Challenge Facility improved handling of bulk challenges and automated processing, enhancing data accuracy and timeliness.

Maturity Level Performance

Maturity Levels ranged from 0 to 3, showing varying degrees of compliance among LEI issuers across different months.

Top 5 Failing Checks

Identified the checks with the highest number of failures, including Check ID C000256 leading with 176 failures.

Data Quality World Map

Illustrates global data quality, with specific focus on regions achieving below 99.0% quality.

Data Quality Criteria

Detailed scores across various criteria like Accessibility, Accuracy, Completeness, etc., with most criteria maintaining a score of 99.99%.

Totals

Total LEI Records: 2,532,322, a 0.80% increase.
Active Entities Managed: 2,409,003, up by 0.71%.
Other statistics include new and renewed LEIs, lapsed LEIs, and more.

Challenges

Overview of new and closed challenges, highlighting an increased efficiency in resolving challenges.

The Global Legal Entity Identifier Foundation (GLEIF) meticulously compiles and releases a comprehensive suite of data quality reports on a monthly basis. These reports are pivotal in assessing and demonstrating the overall integrity and accuracy of data maintained within the Global Legal Entity Identifier (LEI) System. The two principal categories of these reports are:

Global LEI Data Quality Reports: These reports are instrumental in showcasing the aggregate level of data quality maintained across the entire Global LEI System. They provide a macro-level view of the data integrity and are essential for stakeholders who rely on this data for various financial, regulatory, and business purposes.

LEI Issuer Data Quality Reports: In contrast to the global reports, these are more focused analyses that delve into the data quality levels achieved by individual LEI issuing organizations. They offer a granular view of each issuer’s performance, ensuring transparency and accountability in the management of LEI data.

Each of these reports encompasses a detailed set of information for the respective reporting period, which plays a critical role in identifying and quantifying the overall data quality present within the Global LEI System. The key elements of this information include:

Total Data Quality Score (per country): This metric offers a country-specific assessment of data quality, providing insights into geographical variations in data management standards.

Total Data Quality Score Timeline: It tracks the evolution of data quality over time, offering a historical perspective on improvements or declines in data standards.

Check Results of the LEI Data Records Against Implemented Quality Criteria: This involves a rigorous examination of LEI records to ascertain their compliance with the established quality benchmarks.

Overview of Achieved Maturity Levels: This analysis sheds light on the maturity stages of data management processes across the system.

Timeline on Selected Key Metrics: This component visualizes the progression of specific, crucial metrics over the set period.

Overall Statistics on Key Measurements: A comprehensive aggregation of essential data points that underline the system’s performance.

Top 5 Failing Checks: A critical examination of the most common areas where data quality checks fall short, highlighting areas for improvement.

Brief Narrative Summarizing the Key Topics: An executive summary that distills the essence of the report, providing an accessible overview of the key findings and insights.

The Global LEI Data Quality Report

The Global LEI Data Quality Report is readily available for download in PDF format.

Ubisecure RapidLEI LEI Data Quality Report

Ubisecure Oy (RapidLEI) LEI Data Quality Report December 2023 download in PDF format

LEIpapa: Your Trusted Partner in LEI Registration

Why Choose LEIpapa for LEI registration?

Expert Guidance: Our team of seasoned professionals is here to guide you every step of the way, ensuring that your LEI registration is done right the first time.

Swift and Simple Process: We’ve streamlined our procedures to provide you with a quick and straightforward registration experience.

Global Compliance: With LEIpapa, you can be confident that your LEI registration adheres to all global regulatory requirements, keeping you compliant and secure.

How to Register an LEI with LEIpapa?

Easy Online Application: Start your LEI registration journey by filling out our simple online application. It’s fast, user-friendly, and can be completed in just a few minutes.

Support at Every Step: Our dedicated customer support team is always on hand to assist you with any queries or guidance you may need throughout the process.

Does LEIpapa have a community?

At LEIpapa, we understand the importance of a Legal Entity Identifier (LEI) in today’s interconnected global economy, and we’re committed to making your registration process as smooth and hassle-free as possible. Visit LEIpapa web app at app.leipapa.com or contact us to start your LEI registration today.

Apply for an LEI code, register new LEI. Powered by LEIpapa and Ubisecure RapidLEI.