Legal Entity Identifier (LEI): How the ‘Transparency Fabric’ fights financial crime more effectively

5 mayo 2025

The Legal Entity Identifier (LEI) is increasingly becoming focused on transparency and security in global finance. A pioneering initiative called ‘Transparency Fabric’, supported by the Global Legal Entity Identifier Foundation (GLEIF), Open Ownership and OpenSanctions, impressively demonstrates how the linking of LEI data with other sources of information is revolutionising the fight against financial crime.

What is the Legal Entity Identifier (LEI)?

The LEI is a globally unique identifier for legal entities involved in financial transactions. The LEI system aims to bring transparency to economic ownership and corporate structures. Standardised organisational identification makes it easier to identify risks and meet regulatory requirements efficiently.

Transparency Fabric: LEI as the key to data linkage

As part of the ‘Transparency Fabric,’ the Legal Entity Identifier becomes the central anchor point for integrating a wide variety of data sets. The initiative combines LEI data with information on beneficial owners and sanctions lists. This combination enables a 360-degree view of companies and their ownership structures—a decisive step towards uncovering money laundering, tax avoidance, and sanctions offences.

Benefits for financial institutions and regulatory authorities

The linking of LEIs with open data sources significantly improves:

– the efficiency of KYC (Know Your Customer) processes,

– the quality of risk assessments

– the detection of suspicious transactions

– and the fulfilment of international compliance requirements.

Financial institutions that rely on LEI-based systems can check business relationships more quickly and recognise risks in real-time.

International recognition at the G20 TechSprint

The ‘Transparency Fabric’ was honoured as a finalist at the G20 TechSprint 2023. The innovation competition recognises technological solutions to combat financial crime. The initiative demonstrates how the Legal Entity Identifier creates global added value as a central data tool.

Conclusion: The LEI is more than just an identifier

The Legal Entity Identifier is increasingly developing into a strategic instrument for global financial transparency. Combined with open data sources and modern technologies, the LEI is becoming the cornerstone of an efficient, secure, and compliant financial system.