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 334 Table 2: Actions market participants can take to realise the benefits of the LEI (continued) Actions Benefits from the potential of the LEI to transform payment processes. (The actions ref lect the FSB’s recommendations where relevant to the payments industry as set out in the FSB’s 2019 Thematic Review on Implementation of the LEI. 43 ) End users • Have well-maintained LEIs for all active entities. • Incorporate LEIs in business processes including invoicing and accounting systems. • Improve risk and liquidity management. • Ensure payments are made to the correct counterparty. • Assist with screening and onboarding of customers and suppliers. • Assist with consumer protection. • Innovation can lead to easier identification and movement around the financial system. *The ‘only once’ principle is a concept to ensure that certain information only has to be reported to author ities once and this is then shared across government departments. In the UK, this principle is used to notify of deaths, while in the EU, this principle is used in a single digital gateway. CONCLUSION The incorporation of LEIs into payment messages could bring signif icant bene f its to the users and operators of domestic and international payment systems. This paper sets out the actions required from operators, users and authorities to unlock these benef its. The Bank of England and GLEIF are committed to working collab oratively with all market participants (national, international, public and pri vate) to promote the actions required to realise the full potential of LEIs for the pay ments industry and beyond to the wider economy. The HVPS+ and CBPR+ market practice groups have developed concrete proposals for the inclusion in ISO 200022 payment messages of LEIs as identif iers of parties to a payment. By 2025, the high-value payment systems in the UK, US and euro area will all be carrying LEIs in their payment mes sages, as will cross-border payments across the SWIFT network. © Bank of England, 2020 R EFERENCES (1) G20 (2012) ‘Point 44 of the G20 Leaders Declaration’, Los Cabos, Mexico, 19th June, available at: http://www.g20.utoronto.ca/2012/2012-0619- loscabos.html (accessed 25th July 2019). (2) Financial Stability Board LEI, available at: https:// www.fsb.org/work-of-the-fsb/policy-development/ additional-policy-areas/legalentityidentifier/ (accessed 11th September, 2019). (3) Global Legal Entity Identifier Foundation (n.d.) ‘Governance Structure’, available at: https://www. gleif.org/en/about/governance (accessed 11th September, 2019). (4) Global Legal Entity Identifier Foundation (n.d.) ‘Statues’, available at: https://www.gleif.org/ en/about/governance/statutes# (accessed 11th September, 2019). (5) Global Legal Entity Identifier Foundation (n.d.) ‘Get an LEI: Find LEI Issuing Organizations’, available at: https://www.gleif.org/en/about-lei/get-an-lei-find- lei-issuing-organizations (accessed 11th September, 2019). (6) Global Legal Entity Identifier Foundation (n.d.) ‘Accreditation of LEI Issuers’, available at: https:// www.gleif.org/en/about-lei/gleif-accreditation- of-lei-issuers/required-documents (accessed 11th September, 2019). (7) Financial Stability Board (2019) ‘Thematic Review on Implementation of the LEI’, available at: https:// - - - - - - The value of the LEI for the payments industry IGTA eJournal | Winter 2020/21 | 50