The LEI is a fundamental requirement
for the reporting of financial data. LEI
is a unique, 20 digit alphanumeric code
based on the ISO 17442 standard as-
signed to ‘legal entities’ all over the world
(‘Natural persons’ cannot obtain an LEI).
The LEI is accompanied by a standard
data record including, for instance, the le-
gal name, domicile, corporate sector, and
country of origin. Access to LEI data is
public and free of charge on a 24/7 basis,
whilst obtaining and maintaining an LEI
is subject to a minor cost-covering charge.
The adoption of LEI as a standard, global
identifier was initiated by the G20 coun-
tries in 2011, and organised to secure
The payment industry is developing
rapidly with much competition from known
and new providers. Eurogiro has in recent
years connected to new providers such as
mobile service providers. How do you see
the role of new types of payment providers
in connection to Eurogiro?
Mobile is clearly the future for not only inter-
national payments but also the entire client/FI
relationship. Getting the mobile client interface
right is the key to maintaining client loyalty.
Having the ability to connect to new types of
payment provides greatly enhances the bene-
fit of membership in the Eurogiro space.
Eurogiro connects a variety of financial
institutions, among these many posts and
postbanks. What do you see as the most
important benefits for banks in a Eurogiro
membership?
I think increasingly customers are agnostic to
what type of institution serves their payment
needs and definition of a bank versus a post
office becomes less relevant. Indeed we
need to think about what is being offered from
social networks and alternative payment pro-
viders to gain the confidence of the consumer
and maintain our clients in the digital age.
Eurogiro is a payments community with
diverse membership. What do you see as
the most important priorities to keep the
community and the service offering valua-
ble to members?
It has been very interesting for me to follow
our clients as they shift their focus to other
markets and communities around the world.
For Canadians, the focus has historically
been the US, but more recently the growth
of flows with Asia, Africa, LATAM and the
Middle East has been a game changer. In
addition, we have recently signed a new
free trade deal with Europe and anticipate
a surge in trade activity. Globalisation is alive
and well.
Finally, in your personal work there seems
to have been equal emphasis on managing
and developing your various business
portfolios. How would you like to influence
the future of Eurogiro?
As we have discussed earlier, consumer
expectation of what service level they expect
to receive has grown exponentially. New tech-
nologies are literally leapfrogging the existing
rails of international payments. In order to
maintain relevance and grow our customer
base, we as a community need to provide the
latest version of mobile client services and Eu-
rogiro is perfectly positioned to provide these
connections.
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service providers reduce their counterpart and
compliance risks.”
Who does the LEI impact upon?
The LEI is required by public authorities to
assess risks, to conduct market surveillance
and enforcement, and is used to fulfil their
obligation to supervise market participants.
The first roll-out covered financial entities with
reporting obligations towards supervisory
authorities. Eventually, any legal entity must
have an LEI.
Legal entities that are parties to financial
transactions, including non-financial institu-
tions, must acquire an LEI from a licensed
Local Operation Unit (LOU). In November
‘Who is Who’ in a transaction?
Finding an unambiguous answer to this question becomes more and
more important when handling financial transactions. Knowing your
counterpart is essential in risk management. The LEI, Legal Entity
Identifier, promises to become instrumental in identifying any legal
entity in the future. LEI is being rolled out now across the globe.
What is an LEI?
LEI is a unique, 20 digit
alphanumeric code based on
ISO 17442 standard assigned to
legal entities
a neutral, supervised, cross-country struc-
ture that operates on a non-profit basis. The
Global LEI Foundation develops and main-
tains the agreements that provide the rules
and standards for the LEI register system.
The private sector, such as the financial indus-
try, will benefit from improved risk manage-
ment and operational efficiencies, as players
in the sector are obliged to have an LEI.
Gerard Hartsink, Chairman of Global LEI
Foundation, points out that “The LEI has
a great deal of value for correspondent bank-
ing because all counterparties (and third par-
ties) are uniquely identified on a global scale.
It will help financial institutions and payment
2 Eurogiro News
