IGTA Journal - Winter 2020/2021

Delivered by Ingenta IP: 193.129.26.79 On: Tue, 28 Jan 2020 14:32:43 Copyright: Henry Stewart Publications Cleland and Hartsink GLEIF suggests that banks adopting the LEI could save at least 10 per cent of total operations costs for client onboarding and trading processes. 14 Table 1: LEI issuance by FSB jurisdiction Jurisdiction LEI issuance USA 209,590 UK 145,598 Germany 124,745 Italy 111,393 Netherlands 104,269 Spain 103,342 France 80,002 Canada 32,381 India 28,458 Switzerland 17,471 Australia 16,033 Japan 10,470 Hong Kong 7,558 Singapore 6,384 China 6,227 Mexico 3,706 Turkey 2,136 Brazil 2,114 Russian Federation 1,488 South Africa 1,455 Korea 1,273 Indonesia 723 Argentina 666 Saudi Arabia 463 FSB countries 1,017,945 Rest of the world 451,660 Source: GLEIF, 26th August, 2019, www.gleif.org ● Onboarding of customers and suppliers in the supply chain: LEIs can help businesses to mitigate their business risks and ensure compliance with sanctions regimes by enabling businesses to know exactly who their contract partners are, as well as their direct and ultimate parents. Corporate trea surers as well as other business organisations, such as GS1 and the International Cham ber of Commerce, are very supportive of the LEI programme. ● Identity management in online transactions: – The LEI supports online business pro cesses by including the LEI in the certi fication process of claims. The inclusion of the LEI in digital certificates, based on the ITU X509 standard, increases the legal certainty of computer-to-computer services. GLEIF is working with the CAB Forum to realise this benefit. – Digital trust processes can be supported by using the LEI in secure certificates to add an extra layer of verification for online business or for official docu ments where the tamperproof signature is added to the LEI of the issuer of the document. ● Easier identification and movement around the financial system: – Where the LEI can be used to stream line bank processes and improve cus tomer experience, end users can have access to better provision of credit and other financial services. – LEIs can support consumer protection by providing an additional/independent means to check the legal name and status of unknown payees, and identify poten tial errors or cases of fraud; particularly where the payee is based in another jurisdiction. For policy makers, the benefits include the following: 15 ● Better assessment of micro and macro risks: The LEI enables banks, businesses, central banks, regulatory authorities and public policy makers to more easily link datasets that con tain business-level data, improving analysis and enabling them to make more effective, informed decisions. For central banks, this can benefit all of the supervisory/oversight, monetary policy, financial stability and pay ment system policies, including real-time gross settlement (RTGS) operator func tions. For example, the LEI is currently Page 325 - - - - - - - - - - - - IGTA eJournal | Winter 2020/21 | 41