The Commonwealth Financial institution of Australia (CBA) has turn into the most recent monetary establishment to be permitted as a Validation Agent within the World Authorized Entity Identifier (LEI) System.

The World Authorized Entity Identifier Basis (GLEIF) defined that by turning into the primary Validation Agent based mostly in Australia, CBA is now uniquely positioned to ship a seamless expertise for its shoppers when acquiring an LEI; whereas additionally realising important operational efficiencies.

The information comes as converging trade developments are anticipated to drive a pointy enhance in LEI adoption by SMEs and non-financial organisations throughout the area.

Key native initiatives shaping LEI adoption embrace up to date over-the-counter (OTC) spinoff transaction reporting guidelines from the Australian Securities & Investments Fee (ASIC).

Stephan Wolf, CEO of the World Authorized Entity Identifier Basis, commented: “The continued growth of the Validation Agent community additional demonstrates the worth derived for each the agent organisation and their shoppers, serving to to ship belief with elevated simplicity, comfort, and expediency. And with trade momentum for the LEI gathering tempo throughout the globe, GLEIF totally endorses and welcomes CBA’s dedication to proactively assist its shoppers in getting forward of the LEI adoption curve.”

The regulation, which comes into pressure in October 2024, mandates the LEI as the one permitted entity identifier for counterparty identification, phasing out using the AVID code and Enterprise Identifier Code (BIC).

This may enhance alignment with world market practices to scale back prices and complexity whereas serving to to deal with the problem of figuring out smaller, non-financial counterparties.

Championing trade efforts

In its function as a Validation Agent, the Commonwealth Financial institution of Australia can also be championing broader trade efforts to harmonise using identifiers to advertise better transparency and contribute to the combat in opposition to monetary crime throughout the worldwide financial system.

Robust market traction stems from the assist of key stakeholders advocating for the inclusion of the LEI inside ISO 20022 cost messages.

GLEIF’s Validation Agent Framework permits monetary establishments and different supervised organisations concerned in authorized entity identification verification and validation to acquire and preserve LEIs for his or her shoppers in cooperation with accredited LEI Issuers. Validation Brokers obtain this by leveraging their ‘business-as-usual’ consumer identification procedures in Know Your Buyer (KYC), consumer onboarding, or commonplace consumer refresh replace processes.

The variety of Validation Brokers globally elevated to fifteen, with the community now spanning Africa, Australia, China, Europe, India, the Center East, in addition to North America.