The crucial role of the compliance officer: How the Legal Entity Identifier (LEI) strengthens trust and transparency in companies

10 lokakuun 2024

Today, we celebrate the essential work of compliance officers whose dedication forms the backbone of trust and transparency in global business operations. Compliance officers face the challenging task of fulfilling regulatory requirements, maintaining international standards, and strengthening stakeholder trust. Tools such as the Legal Entity Identifier (LEI) and the verifiable LEI (vLEI) are becoming increasingly important.

What is the Legal Entity Identifier (LEI)?

The Legal Entity Identifier (LEI) is a globally unique number that gives companies a standardised identity in the international business environment. It enables precise and standardised legal entity identification, strengthening global business transparency. Compliance officers increasingly use the LEI to optimise processes and minimise manual checks.

The added value of the LEI for compliance officers

The LEI and the verifiable LEI (vLEI) provide compliance officers valuable support in complying with complex regulations. The use of the LEI offers several advantages:

standardised identification:

Compliance officers can ensure accurate identification in different jurisdictions with the LEI.

optimisation of KYC processes:

The LEI simplifies KYC (Know Your Customer) processes and reduces the effort required for manual checks.

increased transparency in cross-border transactions:

The LEI improves transparency and accountability in international transactions, reducing risk for all parties involved.

strengthening risk management:

The LEI provides access to trusted corporate data that facilitates risk assessment and management.

GLEIF and the contribution to compliance

The Global Legal Entity Identifier Foundation (GLEIF) supports compliance officers worldwide by providing tools that facilitate due diligence and simplify regulatory reporting. With these solutions, GLEIF sets new standards for trust, transparency and security and helps companies increase their efficiency.

A thank you to all compliance officers worldwide

Today, we thank all compliance officers who work tirelessly to uphold integrity and global standards. Their contribution to creating safe and transparent markets is invaluable.

Conclusion

The Legal Entity Identifier (LEI) is more than just a number—it is an essential tool for compliance officers to promote cross-border transparency and sound risk management. Compliance officers play a key role in building trust in global markets and fostering growth by using the LEI.