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 Page 332 ACTIONS MARKET PARTICIPANTS CAN TAKE TO REALISE THE POTENTIAL OF LEI TO IMPROVE PAYMENTS Major payment system operators have harmonised plans to incorporate LEIs in payment messages. There is an opportun ity to build on this so that LEIs become embedded in industry and government sys tems and processes as a key identif ier and are used innovatively to bring better services for end users. This environment will enable the use of LEIs for a wider range of payment transactions. The benef its can touch on each of the participants in payments, and beyond to the real economy. To realise this vision there needs to be: ● widespread awareness of the LEI and its benefits; ● infrastructure to facilitate LEI adoption and usage; ● accessibility — efficient costs and processes for LEI adoption and maintenance; ● interoperability — comprehensive mapping of LEIs to other identifiers that are easy to access and use; ● data — availability of and access to rich data on the LEI; ● usage — LEIs integrated in business and government systems and processes. The Bank of England and GLEIF believe a critical juncture has been reached where real progress can be achieved through collabora tion between the public and private sector at both the national and international level to: ● promote broader uptake of the LEI among businesses; and ● incorporate the LEI in a wider range of payment messages. Table 2 summarises the actions payment system operators, payment service provid ers, GLEIF, government and national data authorities, industry standard setters, regula tors and end users could take to benefit fully Table 2: Actions market participants can take to realise the benefits of the LEI Actions Benefits Payment system operators • Incorporate LEIs into payment messaging standards. • Extend data fields captured and processed by system to include LEIs. • HVPS operators can follow HVPS+ guidelines for ISO 20022 implementation which allow for LEIs to be included in payment messages. • The European Payments Council has four Rulebooks and Implementation Guidelines based on the ISO 20022 standards.The LEI is being reviewed as an option to be included in these rulebooks. • Have better assessment of micro and macro risks. This can: { enable better understanding of the risks to the payment system; { protect and enhance financial stability; { support more effective policy decisions by public authorities; { be used in statistical research data; { support businesses and public administrations in the reconciliation of payments data. Payment service providers • Develop capability to add LEI to outgoing payment messages, and to process and pass on from incoming messages. • Incorporate LEI into compliance and fraud screening. • Support efficient compliance and fraud screening, onboarding, KYC checks, risk reporting and payments processing. • Facilitate AML, combating the funding of terrorism finance and sanctions checks. • Assist with the continued provision of correspondent banking services. (continued) - - - - - The value of the LEI for the payments industry IGTA eJournal | Winter 2020/21 | 48