LEI Solutions > SWIFT Payments

LEIs for ISO20022 | SWIFT payments

Swift LEIs

“Now is the appropriate time for the payment industry to begin its adoption of the LEI.”

Payments Market Practice Group (PMPG) | SWIFT

More than 1.7m organizations around the world now registered with a Legal Entity Identifier (LEI)

The LEI has quickly proven its value as the “one identity behind every business”. Regulatory use of LEIs is now expanding out of specific financial reporting and into new payment standards driven by ISO20022 and SWIFT. Get ready, because the number of LEIs in use is about to increase by an order of magnitude.

Banks, payment processing companies, and FinTech solution providers need to have a plan for registering and managing LEIs to avoid disruption to core payment workflows:

RapidLEI innovates to meet demand

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Full LEI Support
Issue LEIs to organizations, trusts, and funds

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Automated LEI issuance process
No overhead to obtain internal LEIs or client LEIs

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Bulk Registration
No need to register individual LEIs, add in bulk

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Discovery & Consolidation
Identify all group LEIs and to your account. You save time, cost, and avoid lapsed LEIs

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Automated Renewals with Customizable Expiry
Align expiry dates. System automatically renews multi-year LEIs

LEI API

API
Free LEI API usage, same-session registration and issuance

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Volume Discounts
Save significantly over buying individual LEIs

RapidLEI account manager

Dedicated Account Manager & 24/7 Support
Coordinates and prepares transfers and renewals (inc. Letters of Authorization, level 2 data preparation and more)

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One Agreement & Multi-LOU Approach
Both internal and client LEIs can be managed with multiple accounts under a single non-exclusive agreement

Benefits of using LEIs in the Payment Process

Identity data validation assured at point of payment processing – sending and receiving banks ensure payment to the correct entity in a large corporate group.

Efficiencies are created as KYC will not interrupt processing and customer onboarding is streamlined.

A democratization of organization identity as firms of all sizes, not just the big corporations, can be identified as a true legal entity.

All parties gain insight into who owns whom (LEI level 2 data).

Identify fraud and economic crime can be identified or deterred.

Standardised Customer Due Diligence (CDD) process between all entities.

“Improved identity data, such as the LEI, should enable simpler and more accurate reference checking against AML and anti-terrorist financing databases.”

Bank of England

SWIFT LEI

What’s needed & what RapidLEI delivers

Sending/receiving banks will be at the centre of on-demand LEI issuance.

Payment processing solutions will need to be able to issue LEIs to organizations that don’t have one, in order to avoid delays in transactions.

Provisioning and management of the greatly expanded LEI universe create new business opportunities for all entities involved. LEI issuers with modern systems that provide automation, management tools and APIs will better meet the new set of scaling requirements than LEI issuers that rely on legacy, slow, manual, closed system processes.

SWIFT LEI

The major change driver – ISO 20022

ISO 20022 is driving the inclusion of LEIs in payment messages as it becomes the global standard language for financial transactions. Within five years ISO2002 is expected to be the main language for payments, supporting almost all of the value of transactions worldwide. All the entities involved in the transaction need to be verified legal entities. The LEI will fulfil that requirement:

“As part of the adoption of ISO 20022, and with it the LEI, organizations are recommended to adapt their business processes to ensure that LEIs are captured whenever a new counterparty or customer record is set up.” – PMPG