A Legal Entity Identifier (LEI) is a unique global identification code. It is similar to a bar code. This code allows for the identification of all distinct entities in a financial transaction. A LEI is a unique 20-digit alphanumeric code for companies which provide a unique identifier on all financial transactions.
The global economy is becoming increasingly interconnected. Multinational companies often have thousands of legal entities with similar names operating all over the world. The Legal Entity Identifier (LEI) system will benefit regulators and market participants. It will provide transparency by helping them to understand and document complex corporate structures and hierarchies.